Priced Out of the American Dream: Understanding the Policies Behind Rising Costs of Housing and Borr... Show more Priced Out of the American Dream: Understanding the Policies Behind Rising Costs of Housing and Borrowing Show less

Hill, J. French: committee on financial services will come to order without objection the chair is authorized to declare a recess of the committee at any time today's hearing is entitled priced out of the american dream understanding the policies behind rising costs of housing and borrowing without objection all members will have five legislative days within which to submit extraneous materials to the chair for inclusion in the record i recognize myself for five minutes for an opening statement the american dream has long been a symbol of opportunity promising economic freedom home ownership and a better future through hard work however for many american families today rising costs housing supply shortages are making those milestones increasingly difficult to achieve and hence the title of today's hearing priced out of the american dream reflecting that reality for many affordability has become a serious challenge after years of harmful biden era policies marked by reckless spending and inflation reaching 40 year highs leaving households to absorb the consequences of those higher prices and increased borrowing costs in 2024 we hit an all-time high for the cost of building a single family home and it's only expected to grow short rates set to set to fight persistent inflation are driving up mortgage payments and borrowing has become more expensive these pressures are squeezing household budgets and limiting opportunity as the 2025 financial stability oversight committee annual report makes clear economic growth is essential to financial stability in a growing economy rising incomes make debt more manageable standards of living improve and the financial system remains stable and resilient since the tart of president trump's second term we've seen renewed economic momentum driven by pro-growth policies and a clear regulatory framework under the president's leadership the economy is back on track reversing the damage left by the previous administration and restoring confidence in our financial system this stands in sharp contrast to the warnings predicted predicted by many across the aisle just before the president's inauguration in 2024 moody analytics predicted that a republican controlled government would lead to 3.5 inflation 5 unemployment a recession and a budget deficit in excess of six percent of gdp those warnings were echoed repeatedly by democrats who claimed that republicans would derail the economy the data has conclusively disproven those assertions inflation came in nearly a full percentage point below forecast unemployment did not exceed 4.5 percent no recession materialized gdp growth is on track for three consecutive quarters above three percent and the budget deficit is projected to fall to 5.4 percent of gdp while the broader economy has improved affordability challenges that i outlined remain for many households that's why republicans in this committee continue to introduce legislation that address this challenge head-on we have direct solutions to improve the cost of living for all americans throughout the 119th congress we've unveiled legislative proposals that work to reinvigorate our banking system expand access to credit and remove unnecessary regulatory burdens recently i introduced the main street capital access act with subcommittee for financial institutions chairman andy bar to revitalize revitalize local bank formation and right size regulations so that banks can do what they do best lending to local businesses and communities late last year subcommittee on housing and insurance chair mike flood and i introduced and the committee advanced with the support of ranking member waters mr cleaver the 21st housing for the 21st century act which reduced regulatory barriers barriers, and making building homes and apartments that are making that difficult. And last night, the House advanced that bill by a vote of 390 votes. In December, the House also overwhelmingly passed Subcommittee Capital Markets Chair Anne Wagner's INVEST Act with strong bipartisan votes of over 300 votes. This legislation will strengthen our capital markets, promote capital formation, and ensure that America's markets remain a global leader. President Trump has been clear about the importance of addressing the cost of living for all American families, and these bills reflect our shared commitment. Through our work on housing, community banking, and capital formation, we're dedicated to restoring affordability, expanding opportunity, and making the American Dream fully attainable for all Americans. I look forward to our discussion today, our panel, and I yield back. I now recognize the gentlewoman from California, Mrs. Waters, for an opening statement.