Housing affordability crisis: New NAMB president pushes for LLPA changes

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“I was over in Europe, and I got to speak to seven other countries at an international mortgage brokers federation conference, and most of the people over there still have their families able to help give them money,” White said. “We don’t have that today. I’m a boomer myself. I’m not in a position, or most people, to give their kids or their grandkids the money like we used to, because we’ve spent our money through the crashes.”

Because the younger generations aren’t getting that help from family members, it is delaying their ability to start building generational wealth. It initiates a cycle where the process becomes increasingly delayed with each generation, resulting in effects that can persist for several generations.

“They can’t afford a home, they can’t save, and we have got the largest wealth inequality gap since I’ve been in this business in 39 years,” White said. “In the 80s, the interest rates may have been 16% but the difference was that the per capita income kept up with that inflation at that house. Today, it’s not like that. Housing prices, taxes, and insurance have outpaced the average income of borrowers.”

The inability of people to buy a home eventually becomes a belief that they will never be able to. This means there is no opportunity to create generational wealth, and it can also cause psychological damage.

“The first-time buyer who can’t afford to buy a house, they don’t think they’ll ever buy a house,” White said. “You’re not just getting away from the American Dream. You’re getting away from the backbone of the American economy. A home is the biggest builder that someone can have, and it is the biggest source of self-worth. It’s going to cause a crisis of lack of fulfillment, of self-worth and lack of feeling that they belong.”



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