Mises Institute Why Are Houses So Expensive? It's Deliberate Government Policy
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Dec 24, 2025 The discussion reveals how government policies intentionally keep home prices high, challenging the narrative of unintended consequences. Trump's contradictory stance on affordable housing is explored, emphasizing federal interventions and subsidies as part of the political landscape. Monetary policies and low interest rates inflate housing demand, while the Fed's mortgage-backed securities purchases since 2008 protect home values. The podcast argues for major reforms to reset housing prices, benefiting younger buyers and restoring market realism.
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Trump Admits Preference For High Prices
- Ryan McMaken cites Donald Trump's public remark that he wants to keep home prices high while making housing more affordable.
- Trump admitted he doesn't want prices to fall because many homeowners consider housing their primary wealth.
Government-Driven Demand Raised Prices
- Federal policies have deliberately increased housing demand for decades through agencies and loan programs.
- These demand-side interventions pushed prices up without raising long-term homeownership rates.
Cheap Money Masks Rising Prices
- Low interest rates from central bank policy subsidize housing by lowering monthly payments.
- This allows prices to rise while keeping payments affordable, inflating housing values over time.