They Aren't Trying to Lower Home Prices (Here’s Why)
Jan 27, 2026
They dig into why policymakers focus on buyer qualification and monthly payments instead of letting home prices fall. Conversations cover financing moves, supply shortages, and why governments resist housing crashes. They explore builders’ constraints, the housing shortfall, and who gains when rates drop. Practical forecasts for refinancing, building activity, and preparing investments for 2026 round out the discussion.
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insights INSIGHT
Policy Prioritizes Payments Over Price
Policymakers focus on lowering buyer payments and down‑payment barriers rather than forcing home price declines.
Protecting homeowners and the economy makes price cuts politically and practically unlikely.
insights INSIGHT
Demand Moves Faster Than Supply
Falling rates spark immediate demand while supply lags, so prices rarely crash quickly.
With constrained supply, lower rates tend to raise activity before any new inventory appears.
insights INSIGHT
Structural Shortage Drives Price Rises
Household formation outpaced construction over many years, creating a structural housing shortage.
That long duration shortfall explains much of the price rise since 2019.
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Join Ken and Danielle McElroy as they pull back the curtain on why policymakers are prioritising buyer qualification over price declines to protect the economy's financial backbone. Discover why the "on-ramp" to homeownership is changing and what this shift toward extreme financing means for your long-term real estate investment strategy.
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ABOUT KEN: Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, and The ABC’s of Property Management. With over two decades of experience in real estate investing, Ken McElroy is passionate about sharing the good life by helping real estate investors grow and prosper. This podcast is a place for Ken to discuss numerous topics connected to real estate investing, including finance, budgeting, the entrepreneur mindset, and creating passive income. Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.
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