US Treasury Secretary Scott Bessent claims the American dream isn't 'let them eat flat-screens' or 'cheap baubles from China' — says Trump is focused on mortgages, cars, real wage gains

Housing affordability remains a pressing issue

Bessent’s remarks highlight one of the most pressing financial issues for Americans today: the soaring cost of homeownership.

Over the last decade, U.S. home prices have surged, with the S&P CoreLogic Case-Shiller U.S. National Home Price Index nearly doubling. Federal Reserve Chair Jerome Powell has acknowledged the severity of the problem, pointing to supply constraints as a key driver.

“The real issue with housing is that we have had, and are on track to continue to have, not enough housing,” Powell said at a press conference in September. He explained that “all aspects of housing” face challenges, including the zoning of land in desirable locations.

“Where are we going to get the supply?” he asked.

The gap between supply and demand is significant. An analysis by Zillow in June estimated the U.S. housing shortage at 4.5 million homes as of 2022.

There’s also the issue of high mortgage rates, which stand at around 6.67%, meaning borrowing money to buy a home remains expensive.

If you’re in the market for a home, Freddie Mac recommends shopping around by obtaining quotes from three to five lenders to secure the best mortgage rate possible. Even a small rate reduction can translate into significant savings over the life of a loan.

To make this process easier, platforms like the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders. By entering basic details — such as your zip code, property type, price range and annual income — you can view mortgage offers tailored to your needs and shop with confidence.

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Rising cost of car ownership

Bessent also pointed to cars as part of America’s affordability issue. Even though pandemic-induced supply chain disruptions and chip shortages have eased, the cost of owning a car remains high.

According to the American Automobile Association (AAA), the total cost of owning and operating a new vehicle in 2024 has climbed to around $12,297 per year — or $1,024.71 per month.

One major recurring expense is car insurance, and many people overpay without realizing it. According to Forbes, the national average cost for full-coverage car insurance in 2024 was $2,149 per year (or $179 per month). However, rates can vary widely depending on your state, driving history and vehicle type.

By using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you’re getting the best deal.

In just two minutes, you could find rates as low as $29 per month.

Real wages and affordability

Beyond housing and transportation costs, Bessent also raised an important question about the American dream: can each generation do as well (or better) than the one before it?

A study published by the peer-reviewed journal Science in 2017 compared the household incomes of children and their parents, both at age 30, adjusted for inflation. It found that the rate of children who grew up to earn more than their parents had fallen from around 90% of children born in 1940 down to 50% in the 1980s.

One contributing factor is inflation, which eats into wage gains. That’s why Bessent emphasized the importance of “real wage growth” — because even if wages rise in nominal terms, if prices climb even faster, purchasing power declines.

So how have real wages been faring?

According to public policy think tank Center for American Progress, wages have grown more quickly than prices since the beginning of the pandemic and are at record highs.

Be that as it may, many Americans continue to feel the financial squeeze, with essentials like rent, food and health care remaining costly. But if you’re a homeowner, rising property values could present an opportunity.

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Find additional sources of capital

With home values higher than ever, you can make your home work harder for you by making the most of your equity. The average homeowner sits on roughly $311,000 in equity as of the third quarter of 2024, according to CoreLogic.

Having access to your home equity could help to cover unexpected expenses, pay substantial debt, fund a major purchase like a home renovation or supplement income from your retirement nest egg.

Rates on HELOCs and home equity loans are typically lower than APRs on credit cards and personal loans, making it an appealing option for homeowners with substantial equity.

Unlock great low rates in minutes by shopping around. You can compare real loan rates offered by different lenders side-by-side through LendingTree.

Just answer a few simple questions, and LendingTree will match you with up to 5 lenders ¹ with low rates today.