Ben Carson, the U.S. Department of Housing and Urban Development secretary, hosted a question and answer session on the meaning of homeownership in America, which he broadcasted through Facebook live.
He explained that, while homeownership is still part of the American dream due to the stability and security it brings, it must be done in a responsible manner. Carson cautioned against falling into a cycle like the 2006 and 2007 era, where Americans were ushered into a home they couldn’t afford.
The HUD secretary pointed out that one of the greatest obstacles to homeownership today is saving up for a down payment as home prices increase at a faster pace due to low inventory levels than the median income.
And in order to slow the rapidly rising home prices, Carson agreed more newly built homes are needed on the market. He explained that in order to allow homebuilders to thrive, the government needs to scale back on regulation.
In fact, when speaking on regulation, and what it does to entrepreneurs and the economy, Carson commented, “what a bunch of garbage.”
One question pointed out the difficulty Millennials face when entering the housing market due to little cash reserve, low wages and high student debt, asking if perhaps homeownership isn’t for everyone. Carson agreed homeownership is not for everyone, however he insisted that the obstacles mentioned should not be the cause preventing homeownership.
Fannie Mae recently lowered its debt-to-income ratio, which Carson should attract many Millennials. He also pointed out new programs in the loan market which allow homebuyers to roll their student debt into their mortgage.
And in order to help overcome these barriers, the HUD secretary said the Federal Housing Finance Agency is currently in the process of lowering the condominium from a 50% homeownership requirement to 30%, providing the first step into homeownership.
HUD Secretary Carson explained homeownership is for the long-haul, it takes time to achieve and potential homeowners need to get rid of the idea of immediate gratification.
Watch the full video below: