That really is a stupid comment. Did you know that there has been down payment assistance programs going back many years? There is even a website called downpaymentresource.com that lists all of the available down payment programs available to borrowers.It's the same with the $25,000 first time home buyer credit. If EVERYONE knows the credit exists, well then that will just be priced into the new home immediately. In the end the government deficit grows bigger, and the bureaucracy grows bigger. And nothing is done for the fist time home buyer.
There have been bills introduced in Congress going back several years to provide targeted down payment assistance programs to first-generation home buyers. This is not everyone. So not every home is going to go up by $25,000.
It would be like you arguing that no one at Clemson should be given a college scholarship because it will increase the cost of a Clemson education. Would Clemson be better off offering no scholarships to athletes or lower-income high school students? Would the country be better off if lower-income people were locked out of college and homes?
No.
Targeted assistance works. And that is what down payment assistance would be. Targeted at people who have been historically shut out from homeownership because their families were historically shut out of homeownership. Before you tell me how everything is fair now, please research the history of how Americans build wealth (home equity is the No. 1 ingredient) and then research the history of federally approved redlining in America.