Famed investor Peter Schiff Blasted for Controversial Remarks on Housing Crisis
Prominent investor Peter Schiff has found himself in hot water after attributing part of today’s housing crisis to “married women entering the workforce.” Schiff’s controversial comments were met with backlash from Twitter users, who criticized his perspective.
Schiff expressed his view in a tweet on August 6, where he first discussed mortgage rates, stating, “The 30-year, fixed-rate #mortgage peaked at 18.45% in Oct. 1981 and troughed at 2.65% in 2021. The current rate is 7.4% and rising.” He then went on to claim that “40 years of falling mortgage rates, plus married women entering the workforce, allowed home prices to rise much faster than incomes.”
The response from Twitter users was swift and critical. One user responded by stating, “Of course it’s the women’s fault. Nice Peter.” Another user accused Schiff of disregarding the efforts of women who fought for workplace equality and progress.
Schiff attempted to clarify his statement, explaining that his intention was not to lay blame on women entering the workforce, but rather to contextualize the impact of inflation on home prices. He highlighted the record-high mortgage rates of 1981, which were a consequence of skyrocketing inflation during that time. This inflation, he argued, led to higher costs of living, including housing.
The surge in inflation during the late 1970s and early 1980s prompted more married women to join the workforce. Programs like the 1973 Comprehensive Employment and Training Act (CETA), as well as improvements in employer-sponsored daycare and paid family leave, supported this trend.
Schiff engaged in a Twitter thread with other users who shared his perspective, emphasizing that rising taxes and inflation reduced the real earnings of married men, thereby forcing their wives to seek employment to compensate for the loss.
The housing affordability crisis has become a growing concern. The ratio of home prices to median household income has significantly risen, with the average single-family house in the U.S. now costing over seven times the median annual household income.
Various factors contribute to the current affordability crisis. The COVID-19 pandemic led to a surge in home prices, fueled by low mortgage rates, accommodating monetary policies, and remote working trends. Additionally, disruptions to supply chains and labor pools resulted in a diminished supply of new housing. The scarcity of available homes has intensified competition among buyers, thus driving prices up.
Schiff believes that these trends, along with increased costs of home maintenance, insurance, and property taxes, will continue to worsen unless inflation and interest rates stabilize.
It is essential to note that this article provides information and should not be considered financial advice.