Yahoo Finance Kevin O'Leary Says The Biden Administration's Investment In Affordable Housing Will Cause More Inflation
In an interview with Fox News, Shark Tank's Kevin O'Leary was asked about the state of the housing market and the recent announcement by the Biden Administration to provide an additional $100 million to support the financing of affordable housing.
"It's not gonna work," O'Leary said in response to the question about the investment in affordable housing. "That's gonna cause more inflation."
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O'Leary went on to say that "we've been throwing a lot of money at a lot of things," mentioning the Chips and Science Act and the Inflation Reduction Act specifically, which he said "ended up being very inflationary."
O'Leary said that the key to housing is that the cost of owning a home is really about interest rates and mortgage rates, which have risen dramatically.
"The only way to make this work is to increase supply." O'Leary said. He also mentioned rate cuts as a way to solve some of the issues facing the housing market.
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"Hopefully the Fed will cut rates at some point, but I don't see it happening this year," O'Leary said.
The host of Fox News went on to note that saving up for a down payment is arguably tougher than it’s ever been before due to rising gasoline and grocery prices, which have contributed to an affordability crisis.
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