Ben Carson on hot housing market: ‘Buy now’ before spending bills increase inflation

Ben Carson on hot housing market: ‘Buy now’ before spending bills increase inflation
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  • Ben Carson
    Ben Carson
    United States Secretary of Housing and Urban Development

Former Housing and Urban Development Secretary Ben Carson predicts that the sizzling housing market and its record price increases will not improve if Congress passes proposed massive spending bills that devote trillions to infrastructure and social programs.

“My advice is if you’re going to buy, buy now,” Carson told the Washington Examiner in an interview Wednesday.

“If we pass some of these acts that Congress is talking about right now, these multi-trillion-dollar acts, pumping that kind of money into the economy without a concomitant increase in goods and services is the formula for gigantic increases in inflation,” said Carson, a former surgeon who sought the Republican presidential nomination in 2016 and then became the secretary of housing and urban development under former President Donald Trump. “So you're going to wind up paying a whole lot more for a house.”

Home prices saw record-high price increases this year, spurred by factors such as people seeking more space in the wake of coronavirus lockdowns and the supply of homes not meeting demand. Stories abound of buyers offering tens of thousands over list price or buying homes sight unseen.

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Some experts see signs that the hot housing market is beginning to cool down. But some economists worry that the run-up on housing prices could help keep inflation high.

In the next several weeks, Democrats in the House and Senate hope to pass both the bipartisan $1.2 trillion Infrastructure Investment and Jobs Act and a $3.5 trillion bill that boosts social programs and green energy initiatives.

Republicans argue that the large spending package would worsen inflation, echoing Carson’s concerns. West Virginia Sen. Joe Manchin, a centrist Democrat, has also expressed concerns about inflation in regards to the bill, calling for a “strategic pause” on advancing the reconciliation bill and saying in an op-ed that the bill has “no regard to rising inflation.”

The hot housing market had coincided with a historic federal moratorium on evictions due to the coronavirus pandemic, implemented during the Trump administration.

“It was not meant to be a long-term, and certainly not a permanent, situation,” Carson said.

The Supreme Court last month blocked the Biden administration’s attempt to extend the halt on evictions.

“We were equally concerned about the landlords as we were about the tenants, and we made sure that we enacted policies that would cease the mortgage payments that the landlords had to pay as long as they were accepting a cessation of rent payments,” Carson said.

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House Democrats are now pressuring Speaker Nancy Pelosi to take congressional action to extend the eviction moratorium due to the delta variant causing a surge in cases and hospitalizations.

“Some of the people who are advocating for this stuff don't think beyond their nose,” Carson said. “They don't realize that if all the landlords go out of business, who's going to be there to maintain the properties?”

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Tags: News, Ben Carson, Real Estate, Congress, Inflation

Original Author: Emily Brooks

Original Location: Ben Carson on hot housing market: ‘Buy now’ before spending bills increase inflation

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