The Housing Trap—Who Rigged the American Dream?

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Good Tuesday morning, Patriots, and welcome back to O'Connor's Right Stand, where truth hits hard and we break down the lies choking America. I'm your host, John O'Connor, programmer by day, patriot by night. It was a sad weekend as one of my fiance's best friends is moving to the other side of the continent for a job opportunity. She'll be in our wedding and we'll also be helping plan the wedding remotely, so for that we can't thank her enough. Personally, I spent a lot of the weekend working and, yeah, thinking.

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while my fiance was enjoying some time with her friend before she heads out to the West Coast. So for the most part, a very chill weekend, which is exactly the way I like it. So I've decided to try something new as to the format of this show. I'm going to try this out for a few weeks, but essentially instead of one episode a week, I'm going to be doing two episodes a week. I'm going to try to do an episode every Tuesday and Thursday morning. Additionally, instead of the episodes being 30 to 35 minutes roughly,

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I'm going to shorten them. I'm going to be gunning for 15 to 25 minutes an episode. So message me on X at O'Connor Stand and let me know. Do you like the format change or absolutely hate it? I'd love to know. This is episode seven and today we're tackling the housing market. Something that matters to me and my fiance as we look for our first house. The housing market is the place where the American dream should live but has turned out to be a nightmare for millions. Home ownership.

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feels more like a game rig to keep you out of it, while Wall Street cash grabs and broken policies pump up prices, rents, and despair. So pour your coffee or bourbon and buck love, because we're exposing who's wrecking your chance to own a home and how we can fight back. This is O'Connor's Right Stand.

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Once upon a time, owning a home was the cornerstone of the American dream. A place to call your own, build a family, and a nest egg for the future. That idea powered the rise of the middle class. My parents, like so many, bought their homes by their late 20s or early 30s without help, just hard work. But that world, it's vast disappearing. Since roughly 2000, the pathway has narrowed. Home prices have soared.

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while wages have mostly stalled. Access to mortgages tightened after the 2008 crash and communities were hit with foreclosures as banks foreclosed on families. And those scars run deep. More recently from 2020 through mid 2025, home prices nationally have jumped about 55%. The Federal Housing Finance Agency reports that all 50 states saw home prices gain in early 2025.

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with a national increase of 4.7 % year over year. The median existing home price in June 2025 hit $435,300. But wages, not so much. The median household income over the same period barely budged, especially when factoring in inflation, crushing payroll paychecks and surging costs like healthcare and education. Property taxes and insurance are also rising fast, adding to the burden.

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In the meantime, inventory of homes for sale remains historically low, tightening supply and pushing prices higher still. According to the National Association of Realtors, existing home prices hit their slowest pace in mid 2025, since late to 2024. Not because demand is vanishing, but because the houses to buy, they just aren't there. And it gets worse for first time home buyers. Millennials and Gen Z

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Carrying record student loan debt face prices so steep that home ownership now feels like a fantasy, reserved for wealthy older generations or Wall Street investors. That dream, it's slipping through the fingers of everyday Americans. Let's talk about an uncomfortable but crucial reality that the housing market pundits don't always shout from the rooftops. The average age of a first time home buyer is climbing and climbing fast.

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Back in the 1980s, the average first time buyer was about 29 years old. People hitting early adulthood, getting married, starting families and buying their first place. It fit the classic American dream script, start young, build equity and grow wealth over decades. Now fast forward to 2025 and that average age has soared to around 38 years old, a record high. That's nearly a decade older than it was just a generation ago.

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In fact, it jumped from about 33 years old in 2020 with a steady rise reflecting the harder realities of today's market. Why does this matter? Because when people buy homes later, it changes everything about economic mobility and life choices. First time buyers who do manage to purchase today often do so with higher down payments relative to past generations and frequently rely on family assistance.

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even as the size of those gifts shrinks relative to home price inflation. The key takeaway? The rising age of first-time buyers is a glaring red flag. It underscores that home ownership is moving further out of reach for younger adults on average, not just because of prices, but due to complex interaction of debt, wages, savings ability, and structural market barriers. This closure of the traditional quote unquote starter home

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Market forces many into longer term renting or alternative housing arrangements, amplifying wealth gaps and social divides. The past five years have been a wild roller coaster for the housing market. When COVID hit in early 2020, mortgage rates plunged to historic lows not seen in decades. The Federal Reserve held rates near zero to prop up the economy, setting off a buying frenzy. Everyone with a pulse and a paycheck rushed in.

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House prices spiked over 20 % annually in 2021 and early 2022. Housing demand outstripped supply like never before, and sellers had the upper hand. The National Association of Realtors called it an extreme seller's market. But the supply chain bottlenecks, labor shortages, and soaring building materials cost meant new home construction lagged. Builders struggled to keep pace. On top of it, a surge in remote...

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work drew buyers to suburbs and exurbs, expanding pressure deep into the previously affordable markets. Coming into 2023, the Fed pushed interest rates up aggressively to battle inflation, raising mortgage rates from around 3 % to over 7 % in 2025. The impact, monthly mortgage payments doubled compared to the low rate era. Suddenly, many qualified buyers dropped out. That cooling demand slowed price growth

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but didn't topple the prices. In fact, prices hit new highs in many markets in 2024 and early 2025. The inventory problem improved slightly, but remains well below long-term historic averages. For existing homes, there's just not enough supply to satisfy the still high buyer count. In early 2025, new home inventory ticked upward, the highest since the 2007-2008 crash, but remains a small share of the total market.

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The problem? Builders face sky-high costs, labor shortages, and a patchwork of zoning laws and regulations slowing projects down. In essence, for millions wanting to buy a home, especially affordable ones, the math is brutal. Price is high, supply tight, financing expensive. It's a market-tilted tort against you.

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Mortgage rates are the nail in the coffin. When rates rose from historic lows to above 7%, affordability crumbled. Imagine this, in 2021, you could afford a $400,000 home with a 3 % mortgage, giving you a monthly principal and interest payment around $1,700. Fast forward to 2025. That same monthly payment now only supports a mortgage closer to $250,000. Put bluntly,

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If your income and savings haven't surged, your buying power is slashed by nearly 40%. Many buyers literally can't write a big enough check even if they offer full cash. In large parts because corporate investors swoop in with cash and skip loan hassles altogether. Surveys show active buyers are stuck in a bind. Either drop out, settle for much less, or pay way more than they initially intended.

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Some prospective buyers face mortgage denial outright due to stricter credit standards post 2020. Low income families and first timers bear the brunt. This rate spike means people holding on to ultra low fixed rates are locked in. Affordable mortgages make selling and upgrading prohibitively expensive. This stagnates supply even further, suppressing turnover. One of the most alarming trends,

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The takeover of the single-family home market by corporate landlords. Since the aftermath of the Great Recession, private equity firms, hedge funds, and institutional investors have scooped up hundreds of thousands of homes. Names like BlackRock and Invitation Homes dominate. They buy homes all cash, often in bulk, outbidding families in key markets from Atlanta to Phoenix. In Sunbelt cities especially, some neighborhoods report up to one in six homes owned by these corporate landlords.

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Why does this matter? These companies prioritize cash flow, not community. They increase rent aggressively, cut corners on maintenance, and treat homes as financial assets sold to Wall Street investors as securitized debt. This converts neighborhoods from places where families build roots into investment portfolios. According to recent data, the rapid corporate absorption of single-family rentals contributed to rising rents.

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nationally up more than 25 % since 2020, with hot markets seeing hikes above 50%. Renters face loss of stability, poor upkeep, and eviction risks. This private equity invasion has fractured the American dream, turning shelter into profit centers for the Wall Street firms, while workers and families pay the price. Before we dive deeper, I want you to hear from a family on the front lines.

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Let's roll a clip from a prominent news report showing an everyday American family being outbid by Wall Street. years, John and Angie Collier saved. This is nice. Eager to buy a first home in Fishers, Indiana, attracted by the good schools and proximity to work. But pursuing the American dream has proved daunting. Oh, sorry. Outbid. Fishers, named by Money magazine, one of the best places to live, is part of a national trend as real estate investment groups buy up houses in cash.

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and rent them out, in some cases, to the very families who dreamed of owning them. In January, 33 percent of all homes purchased in the U.S. were bought by investors, often Wall Street-backed companies with multi-billion dollar funds. The Colliers currently rent in a town near Fishers from one of the nation's biggest house rental companies. Their rent recently raised 8 percent. Four times in recent weeks, they've been outbid by investors with all cash offers.

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you know, discouraging when you get overbid by, you companies. How do you save when you're spending $2,200 a month just to rent? So these companies have you on both ends. Yeah, it's definitely a conundrum. The generations following Baby Boomers are hit the hardest. Millennials and Gen Zers face a brutal financial reality. Record student loans stagnated

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wages and sky-high rents make saving for a down payment nearly impossible. Data shows first-time buyers hit a 40-year low in 2024. The National Association of Realtors reports fewer younger adults enter homeownership annually. Delayed homeownership delays childbearing, family formation, and wealth building. The Fed warns this hurts long-term economic growth. Major metro areas see these trends most intensely. Many young people are chained to rent

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forced to pour wages into homes they'll never own. It's a wealth gap expanding every year. If supply is so tight, why aren't builders building more? Three words, well, really four. Red tape, costs, and politics.

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House builders face skyrocketing lumber, steel, and labor prices upward of 20 to 30 percent rises annually some years. Those inflation pressures push entry-level homes out of reach. On the policy side, zoning laws remain a massive barrier. Many cities enforce single-family-only rules, effectively banning duplexes, triplexes, and affordable apartment buildings. This was once called the American way, but today it's a stranglehold on supply.

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Environmental and safety reviews, while important, often stretch approvals over years. The acronym NINBY, not in my backyard, opposition kills many affordable projects before they start. The result? Less affordable housing built, higher prices for what little gets built, and profit-driven developers focusing on luxury homes with bigger margins.

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Housing market pain isn't uniform. West Coast and Northeast areas, prices remain sky high, often doubling or tripling since 2015. Coastal metros like San Francisco, New York, and Boston are among the least affordable. Here, supply is strangled by tight zoning, geography, and decades of underbuilding. In the sun-built and Texas area, rapid population growth draws investors and buyers. Atlanta, Dallas, and Phoenix,

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see fast appreciation and intense rental demand. This is corporate landlord paradise and pricing locals out. Then you got a rust belt in the Midwest. Some cities like Cleveland or Detroit have more affordable markets, but pockets face foreclosures and lack of inventory. Prices are growing, but incomes lag even more sharply. Then you have disaster-prone areas. Think Florida, Louisiana, and California. They all face insurance hikes and climate risks.

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pricing many homeowners into financial peril. No matter where you live, unless you're rich or extremely lucky, housing is an uphill fight right now. If buying's out of reach, renting feels like a tyrant's thumb. Rents jumped over 25 % nationally since 2020, with hotspots like Miami or Austin spiking far more. Intense competition results in bidding wars for everything from apartments to single-family homes. Landlords,

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especially corporate landlords, use the dynamic pricing algorithms to max out returns. One unlucky tenant can see a rent rise of 10 to 20 % every year. Lower income and minority renters have been hit the hardest. Evictions rose after pandemic protections ended and affordable housing units vanished. With wages stagnant, many renters face homelessness or overcrowding.

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The housing crisis is now a crisis of dignity for millions.

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Can this mess be fixed? Yes, but it requires grit and political will. First, build more and fast. Streamline zoning to allow duplexes, triplexes, and townhomes. Cut permit delays. Fast track affordable housing construction. Two, rein in corporate landlords. Place limits or taxes on bulk home purchases by investment firms.

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Prioritize owner occupants over speculators. Three, real affordability tools. Expand shared equity and down payment assistance directed at residents, not investors. Promote rent to own and co-op housing models. Four, rent controls with care. Protect tenants without crushing supply. Smart policies balancing landlord and renter interests. Five,

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Monitor foreign investment. Tax or regulate overseas money flowing into residential real estate to cool bubbles. And six, encourage community action. Show up to zoning meetings, organize tenants, demand accountability from elected officials. Some cities have made progress with these policies. Minneapolis up zoned aggressively and saw rent stabilize. Montana's shared equity lots help locals get a foothold.

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change demands pressure from the ground up. Patriots, housing isn't just about buying a roof. It's about roots, freedom, and dignity. The system has been rigged by corporate greed, broken policies, and stagnant wages. But the fight isn't lost. We must demand solutions that put working Americans first, not Wall Street or bureaucrats. Share your experiences, show up.

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Push your leaders, organize neighbors. Because if we lose the housing fight, what does freedom truly mean? And on that, well, that's gonna be a wrap for episode seven. I hope you enjoyed it. If you haven't already, follow me on X at O'Connor Stand. And if you know anyone who might like this or any of my other episodes, please share my podcast with them. And finally, DM me on X and let me know what you think of the new format. Until next time.

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stay vigilant and fight hard for your home, your family and your country. I'm John O'Connor, holding the line unapologetically, signing off.