Keep in mind that during the 80’s people were encouraged to save due to the interest rates. Right now there’s very little incentive to save because those who are saving are watching those who are reckless taking it in. I’ve been trying to save for a home and it’s been discouraging to watch prices continue to not budge because there’s people willing to get into a mortgage where they’re paying 40% of their income. It’s insane.
The housing market poses difficulties due to uncertainties about the Federal Reserve's ability to curb inflation and reduce borrowing costs without adversely affecting demand for assets like homes and automobiles.
Consider shifting from real estate to stocks during severe recessions. While market volatility presents short-term trading opportunities, it's crucial to approach with caution. This isn't financial advice, but investing during such times may be a strategic move, consider adopting the services of a financial expert.
In fact, I had no prior experience or understanding when I began investing in 2020, but by the end of 2023, I had made a profit of almost $850k. All I had been doing was going by what my financial advisor had told me. This demonstrates that all you truly need is a professional to assist you; you don't even need to be a great investor or put in a lot of work.
*Izella Annette Anderson* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Middle chick: How about 65% of you don't vote for administrations like the current one? Meanwhile, the other chick owns a house in which she does not live. Others got help from their parents. Gen Z owns more houses than Gen X at a similar age. And they keep saying the American Dream is dead? WT Actual F?!? This chick in the middle also doesn't have a clue, talking about land in Japan appreciating. Yeah, that's what it does because they don't make more land. She talks about 3M more housing units. Can she answer why we need 3M more housing units? Because 12M illegal immigrants in a very short period of time, courtesy of the administration for which her peeps voted, caused a shortage of - do the math. They need to somewhere to live, we don't just absorb them. The $150B they cost taxpayers also negatively affects the value of her dollars. Not one mention of ANY of that between ALL of you. Almost all of what she touches on is feelings - crisis this, crisis that, feeling this, feeling that. I have an inkling she's getting ready to repeat her mistake of four years ago. Streamlining red tape is about the only Harris proposal that makes sense; everything else is spending money we don't have, which means printed, which means inflation. They want all the regulations in the world without understanding that regs have costs. If government would get out of the way, the economy would be worlds better. That's what Trump did.
Not to mention that we don't have a housing crisis as much as a shortage of Desirable Living Space crisis! The US has been tearing down 19th century/early 20th century homes for decades between the Midwest and the East Coast....because No One wants to live in crime ridden, filthy crapholes run by socialist morons, like Illinois for example. We are seeing mass migrations of people out of democratic run states into cleaner, healthier, safer and lower taxed states driving up living costs for host state!
Trump's tariffs, his tax cuts for billionaires? Yeah he got out of the way. Many people are becoming house poor and cost burdened with rent and home ownership.
Your home price didn't go up. The value of your money has collapsed, and wages didn't keep up. It's not a coincidence that both housing prices and stock markets started going wild just after the US dollar left the gold standard.
I think it's really a demand and supply issue. When people were dirt poor and couldn't afford good meals, thay always had some large swaths of land or home for them
In 1966 my father bought a mid-sized bungalow for $15,500. He earned $7,500 as an autobody repairman. Last year the house across the street from our family home sold for $989,000. It was smaller and on a narrow lot.
I’m a Gen Z homeowner, I’m 22. My mom essentially fronted the down payment for my wife and I and we just make the payments. If my mom did not help it would’ve taken me very long to get a house
I believe zoning laws is basically the infrastructure version of price controls. Illegalizing zoning laws would help by allowing people to naturally settle into where they'd like to live. Forcing the building of homes, businesses and factories/fabrication firms into specific areas only makes life more difficult. They're literally separating the different aspects of life into geographical zones than to have it naturally exist alongside where you live. Traveling costs in both time and resources for the worker would significantly reduce because it'd be in walking distance. Which is opposed to the idea that we must separate into different zones and forcing the congestion of roads and mass transportation.
Henry George was right: land is a monopoly with a fixed supply. Any increase in productivity just drives up land prices, making housing less affordable. Landowners capture all the value, pushing costs higher. To solve the housing crisis, we need to rethink how land value impacts the economy.
You're only looking at half the equation. The other half is demand which is mainly 1) Increasing population and 2) Investment. Number 1) is the easiest simply lower immigration. In the 80s the birth rate if as slightly below replacement. For some reason the politicians and the economists thought this was bad and wanted to increase immigration to offset. Yes, a benefit to corporations and shareholders because it meant growth in their assets, but not beneficial to the common man. With regard to 2) Huge mistake for the government to bail out banks and investment firms in 2008. That would have blown away trillions in assets for banks and shareholder value and would have marked the soul of every investment banker and shareholder for generations. Their willingness to invest in the residential market, especially foreign investors, would be destroyed. If that happened, BlackRock and Vanguard would not be buying 20% of all residential homes, they wouldn't have had the money nor the desire to do so.
Is this a trick question? Answer: *because there's too much demand for too few homes*. Kamala's answer: let's increase demand even more by giving out more money to buyers. Actual answer: reduce building codes, reduce zoning limitations, reduce fuel costs (which will lower prices across the board), and don't impose minimum wages on menial labor - if someone is willing to work for a low wage, let them, that's what unskilled, starter jobs used to be for.
There are plenty of homes. And there is plenty of demand. Do you want to know the REAL reason? All the people they are discussing, want a home in a specific state; and city. And in just the right area. And with the right stores around , in a short easily drivable location. People are no longer willing to start from scratch , and help build the community. Everyone uses our parents and grandparents as a comparison. Yes Their houses were cheap. But they were cheap for a reason. TL;DR They want a starter home, that I ready to go, requiring no effort, and gives them exactly the life they want.
Labor costs have no impact on housing affordability in the USA. Savings in labor, either from lower wages or automation or substituting more expensive materials that require less skill to install just gets divided between contractor and the government and government mandates. Building codes, zoning limitations including land use regulations and mandated parks, green spaces, etc, and requirements to use licensed skilled labor control housing supply. Combine that with steady monetary inflation that advantages existing home owners over new buyers and you get the situation that we have today.
@@radagast7200LOL damn, you really don’t like immigration huh. No, we shouldn’t stop it. But we should do it the way all the other countries that liberals love to brag about. You want a house? Show us you will bring a net positive into the country. Show us you can and will afford a place to live. Show us you will have a job ready for you.
Why is nobody talking about the increased cost of basic homes due to the increase in requirements from the building codes?!?! The requirement for separate breakers for an electric charger in new homes and fire sprinkler systems alone add over 10k to the price of a basic home.
Immigration... there are entire neighborhoods being bought up by me by "new arrivals." They are not good neighbors either, and there are people moving out of these school districts because of they impact they have had. They are not punished for being cruel and violent and the parents dont even seem to care and often encourage it. They see themselves as victims, all while doing this and acting entitled. It is absolutely unsustainable.
Me and my wife are Gen Z and own a home. Live in a more affordable metro area. You only need 5 percent down on a house she’s saying 20 percent, which is an outdated measure
20% isn’t outdated. But it’s not the norm, Let alone in the context of a first time home buyer wanting a starter home . Hell, they might not even need 5%. Or they get one of the many grants available . But yeah, using 20% as the rule, was ignorant of them. There’s A completely different process for first time homebuyers
@@Hypercube9 the average down payment for a first time home buyer is 8 percent. He analysis using 20 percent does not make sense because she is talking about first time home buyers
A good place to start would be to get the Federal Reserve and the US gov OUT of real estate! Stop bailing out real estate! The problem now is that we have millions of Americans in homes that they overpaid for...good luck letting housing prices fall. Gov subsidies for first time homebuyers, desirable living space that is shrinking and constant bailouts of real estate....Yeah, this situation is getting way worse in the years ahead.
My wife and I are "millennials" and we bought our first house 10 years ago. We have 4 kids and no debt other than the mortgage. We were gifted nothing from relatives. Hard work pays off.
I'm Gen X, and more or less the same for my wife and I. We paid off our student loans and a car loan, and scraped together enough for a down payment. Sold that house and had plenty for the down payment on our current home. Absent a collapse, we'll downsize next summer and be debt free for the rest of our days. If I ever take a selfie in Santorini, I'll be in my 50s, not in my 20s.
Programs like what the government offers almost always drive prices up. While I am simplifying here, I can tell you as a 20 year real estate veteran that the government does far more harm than good in real estate. It's weird that on a ReasonTV video, a largely libertarian channel, we have several people expressing what government programs will be best. Slowly wane people off of government programs, slowly, require larger down payments, maybe not necessarily 20%, release builders and developers from so many crazy and insane government regs which account for roughly 25% of a new home and re-structure property tax policy and the cost of homes will drop over time. Currently there is a shortage of homes, but that won't be the case in a few more years hopefully. HOA's are a waste of money and cause unnecessary additional costs as well. To be clear, none of these are silver bullets, but less government intrustion into real estate will help drive down costs over time and make homes more affordable. Except for at very rare moments, it's still better to own than rent and the bottom line is we all have to lay our heads down somewhere at night, it might as well be a place you own so you have more control over your conditions and terms on which you pay. Real estate far exceeds the rate of general inflation and as a commission sales person, maybe I shouldn't care, just kidding, but that increase has to stop going up at above general inflation rates. And it likely will, but it will have a better chance of doing so without people making up fairytale stupid programs. The $25,000 program is another dumb program, you can just keep throwign money at stuff to fix it, nothinig, like nothing works that way, not education, not housing, not job creation, nothing! Just my $.02.
Solving housing could be easy, if painful. America needs to remove the 30-year fixed rate, removing FRMs would anchor mortgage rates to the economy and would eliminate many investment properties if the mortgage rate was normalized and not 'windows' to purchase
@@nunyabidness3075 my replies keep getting auto purged idk. Basically if all loans were ARM, mortgage payments would be closer to the economy. investors would be less incentivised in single family homes. It's really hard to fight inflation if half the population has 2% mortgage rates and half have 7%. The 2%ers can just spend more
@@gimpzilla Yeah, I get the algo attacks all the time. So aggravating. We don’t know what’s best because the US government killed the free market on home finance well over a century ago and the hits keep coming. IMO, rates only got below 4% because of a contrived market since 4% seems to be break even over inflation over most 30 year periods. The 30 year mortgage itself was created by government wonks to solve affordability issues in a past “crisis”. IMO, ARMs only are a banker and establishment wet dream. If allowed, someone would always invent the 20 year fixed and beat the ARM sellers with it. The very existence of the 30 year along with all the guarantees, incentives, and other programs have raised home prices by increasing demand (which is the aggregate amount buyers will spend, not just the amount of willing and able buyers). Anyways, just removing FRMs all at once would be catastrophic, and your desired result would not hold because government would still enter the game and break the connection at every crisis.
@@nunyabidness3075 my proposal is an attempt to remove housing as an asset class. Which as you point out would be extremely painful. It would be a ban on fixed rates, and tariffs/exchange to prevent funding outside the US. Do I think it will happen, probably not. But I have a host of other opinions on the American dream/lifestyle. Including the idea we're not that far off where taking a year off work to build an old Sears blueprint will be cheaper than any traditional home. But, I'm mostly in agreement we're debating semantics the future is just that
@@gimpzilla This whole idea of making homes not an investment or asset class or what ever seems divorced from reality. Currency is practically a necessity. It’s a device that sort of allows the breaking of the laws of physics. You can virtually transport time itself as well as resources. Land is a limited commodity, and a house is a bundle of labor and resources. You can, of course build your own home without anyone else if you can steal land and hold it. It won’t be anything like a modern home. It won’t even have glass. It will still be an investment made by you, of your efforts. To build a modern home, you need the cooperation of tens of thousands of other people. How are you going to make the end result something that doesn’t reflect that? I think the whole idea of getting businesses out of investing in single family homes is getting everything backwards. Businesses want to buy the homes because government interference is making everything else a tough game while it’s simultaneously protecting homes and home values. Voters will vote for factory owners to provide all sorts of benefits thus making the factory less valuable. There’s all sorts of liabilities. But voters own homes, and don’t generally vote themselves out of money. In other words, the predators are in the villages eating the people because the people destroyed the wild herds that the predators fed upon. Does that make sense?
No changes to zoning laws or building codes is going to produce the 5-20 million housing units needed to bring prices back into line. The problem is, there are a few supermetros you have to live in to have a decent career, and those places are FULL. Every square foot of land is spoken for in the SF bay, NYC, LA, and similar places. That makes land and building expensive and slow. The solution is to spread economic activity over a wider area; that probably requires some level of industrial policy at the federal level.
Here’s some advise to help get a home 1) stop order Uber eats or going out to dinner - I ate ramen noodles and Spegetti until I was 30 2) stop spending 1000s on make up fashion etc. 3) buy a cheep car not a sexy car 4) you dont need new clothes every season 5) you don’t need a new phone Ann tablet every year and you don’t need the 1500$ versions 6) it’s about choices and trade offs
If an employer want to to hire someone out of college for $40k-$50k a year when that amount isn't even three times the average rent in most cities, how are college grads suppose to survive when landlords won't rent them a place to live based on income? This is just one of the obstacles that Gen Z faces in the real world while Baby Boomers and most Gen Xer's claim these people are lazy, unmotivated or simply don't want to work. I'm a Gen Xer and even I can see these young college grads are being setup to fail.
Isn't that way anymore at least where I'm at and it used to be for sure. Just had a house built across the street. A $350k 1400 sq ft house built on a $80k lot of land. So what land there is 20-25% of the price. Because people from out of state think it's all a steal.
You don't need 20% down for a new home. You need 3.5% for a downpayment with an FHA loan. 3.5% of a 400,000 house in about 15k or under 25K when you throw in closing costs. I'm not saying the subsiding house is the right solution and this will increase home prices but be honest about how much you need to a 30 year mortage.
Sure, if the goal is simply to “buy a house.” The goal should be to “pay off the house,” otherwise you’re probably better off renting. You’re just paying interest in the early years of amortization and have repairs and maintenance on you as well.
We cannot fix anything as long as people complain about the price of homes but then turn around and use every zoning and environmental tool they can find to stop homes from being built in their area.
Well, I picked the challenge to put my finances in order. Then I invested in cryptocurrency, stocks, through the assistance of my discretionary fund manager
Trading is difficult, I'd spend the five grand on education for trading. It's not easy. Investing is different, that's easier. Short term or long term gain is the question.
Every home seeker MUST make $87 dollars pr hr to get an APARTMENT in SF Bay. They say it will require $325 dollars pr hour, not a day, an hour in the future.
If more people could work from home, that would spread out the demand from some of these cities to some of the harder impacted areas of America that could use the youth and energy.
Seems to me the key metric would be a historical comparison of income for 25-35 year olds divided by average house price. Has that ratio really gone up so much that "younger people cannot afford homes"? My wife and I pulling together a down payment back in 2002 was painful on our combined income of $62k, while we were paying off our student loans and a car loan.
Maybe. I sought and eventually succeeded in buying one, but it took about five years (even after I had money saved up and set aside for down payment and closing costs). They aren’t building starter homes, so supply for those are completely dependent on people selling theirs. It was pretty annoying to me always hearing or seeing new homes being built but they were half a million dollar luxury homes I couldn’t afford and had no real desire for. I just wanted to get out of renting and buy something I could pay off.
@@sapahn3039 That's true. You can't buy a new home as a starter home. You generally will only find older homes that are truly starter homes. 50 years ago most houses were only about a thousand to 1,500 square feet. Nowadays they start at 2,500. My house upstairs is 1200 and downstairs it's 800. And it turns 100 years old next month
All incentives crowd out more efficient market based activities, and that’s supposed to be the point of them. If that were realized, we’d have a lot less of them. We should be looking at why the market is out of whack, and we don’t have to look far. The current situation is a result of a century of market interventions by government including things just like those being proposed now.
THEY CAN! Start moving. Get away from the coasts and metro centers you’re all convinced you NEED to live in! I bought my first house two years ago for $29,000! My second for $112,500! It’s possible! MOVE!
@@tristan7216get a job? There are plenty of metros across the US where you can make $100k with a professional degree, as a teacher, or as a skilled trade, where you can still buy existing stock houses in the $100s and $200s. There's also the value of sweat equity - it's OK to buy the 1200SF 3/1 that hasn't been updated since 1964 out of an estate and put in your time to make it what you want.
Hey, can we have some real libertarian hosts on this channel? These two appear to think that Harris's goal of INCREASING government power over home construction, private property and free enterprise might have merits worth considering. How about a full-throated advocacy for free people and a free market?
Young people can't afford homes because they do not know how to save money. They are entitled to eating out, coffee, media subscriptions, new car, clothes, student loans, charge cards, etc. It is simply a matter of priorities. We all did it. Young people today have been raised wrong. I blame the parents, not the foolish children.
I've bought both my houses with only 3% down. I put the least down possible to take advantage of the low interest rates. I wonder why others cant use the 3% down and then pay the PMI.
Keep in mind that during the 80’s people were encouraged to save due to the interest rates. Right now there’s very little incentive to save because those who are saving are watching those who are reckless taking it in. I’ve been trying to save for a home and it’s been discouraging to watch prices continue to not budge because there’s people willing to get into a mortgage where they’re paying 40% of their income. It’s insane.
The housing market poses difficulties due to uncertainties about the Federal Reserve's ability to curb inflation and reduce borrowing costs without adversely affecting demand for assets like homes and automobiles.
Consider shifting from real estate to stocks during severe recessions. While market volatility presents short-term trading opportunities, it's crucial to approach with caution. This isn't financial advice, but investing during such times may be a strategic move, consider adopting the services of a financial expert.
In fact, I had no prior experience or understanding when I began investing in 2020, but by the end of 2023, I had made a profit of almost $850k. All I had been doing was going by what my financial advisor had told me. This demonstrates that all you truly need is a professional to assist you; you don't even need to be a great investor or put in a lot of work.
@@ThomasChai05I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
*Izella Annette Anderson* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Middle chick: How about 65% of you don't vote for administrations like the current one? Meanwhile, the other chick owns a house in which she does not live. Others got help from their parents. Gen Z owns more houses than Gen X at a similar age. And they keep saying the American Dream is dead? WT Actual F?!?
This chick in the middle also doesn't have a clue, talking about land in Japan appreciating. Yeah, that's what it does because they don't make more land. She talks about 3M more housing units. Can she answer why we need 3M more housing units? Because 12M illegal immigrants in a very short period of time, courtesy of the administration for which her peeps voted, caused a shortage of - do the math. They need to somewhere to live, we don't just absorb them. The $150B they cost taxpayers also negatively affects the value of her dollars. Not one mention of ANY of that between ALL of you. Almost all of what she touches on is feelings - crisis this, crisis that, feeling this, feeling that. I have an inkling she's getting ready to repeat her mistake of four years ago.
Streamlining red tape is about the only Harris proposal that makes sense; everything else is spending money we don't have, which means printed, which means inflation. They want all the regulations in the world without understanding that regs have costs. If government would get out of the way, the economy would be worlds better. That's what Trump did.
Not to mention that we don't have a housing crisis as much as a shortage of Desirable Living Space crisis! The US has been tearing down 19th century/early 20th century homes for decades between the Midwest and the East Coast....because No One wants to live in crime ridden, filthy crapholes run by socialist morons, like Illinois for example. We are seeing mass migrations of people out of democratic run states into cleaner, healthier, safer and lower taxed states driving up living costs for host state!
Well said.
This is very right-wing biased.
@@gladys2563 but true.
Trump's tariffs, his tax cuts for billionaires? Yeah he got out of the way.
Many people are becoming house poor and cost burdened with rent and home ownership.
Your home price didn't go up. The value of your money has collapsed, and wages didn't keep up. It's not a coincidence that both housing prices and stock markets started going wild just after the US dollar left the gold standard.
I think it's really a demand and supply issue. When people were dirt poor and couldn't afford good meals, thay always had some large swaths of land or home for them
@@suryanshshrivastava4681 An incredibly vapid and ignorant statement.
In 1966 my father bought a mid-sized bungalow for $15,500. He earned $7,500 as an autobody repairman. Last year the house across the street from our family home sold for $989,000. It was smaller and on a narrow lot.
I’m a Gen Z homeowner, I’m 22. My mom essentially fronted the down payment for my wife and I and we just make the payments. If my mom did not help it would’ve taken me very long to get a house
I believe zoning laws is basically the infrastructure version of price controls. Illegalizing zoning laws would help by allowing people to naturally settle into where they'd like to live. Forcing the building of homes, businesses and factories/fabrication firms into specific areas only makes life more difficult. They're literally separating the different aspects of life into geographical zones than to have it naturally exist alongside where you live.
Traveling costs in both time and resources for the worker would significantly reduce because it'd be in walking distance. Which is opposed to the idea that we must separate into different zones and forcing the congestion of roads and mass transportation.
Henry George was right: land is a monopoly with a fixed supply. Any increase in productivity just drives up land prices, making housing less affordable. Landowners capture all the value, pushing costs higher. To solve the housing crisis, we need to rethink how land value impacts the economy.
You're only looking at half the equation. The other half is demand which is mainly 1) Increasing population and 2) Investment.
Number 1) is the easiest simply lower immigration. In the 80s the birth rate if as slightly below replacement. For some reason the politicians and the economists thought this was bad and wanted to increase immigration to offset. Yes, a benefit to corporations and shareholders because it meant growth in their assets, but not beneficial to the common man.
With regard to 2) Huge mistake for the government to bail out banks and investment firms in 2008. That would have blown away trillions in assets for banks and shareholder value and would have marked the soul of every investment banker and shareholder for generations. Their willingness to invest in the residential market, especially foreign investors, would be destroyed. If that happened, BlackRock and Vanguard would not be buying 20% of all residential homes, they wouldn't have had the money nor the desire to do so.
Is this a trick question? Answer: *because there's too much demand for too few homes*. Kamala's answer: let's increase demand even more by giving out more money to buyers.
Actual answer: reduce building codes, reduce zoning limitations, reduce fuel costs (which will lower prices across the board), and don't impose minimum wages on menial labor - if someone is willing to work for a low wage, let them, that's what unskilled, starter jobs used to be for.
everything you said plus nimby, utility hook-ups, and permit cost
There are plenty of homes. And there is plenty of demand. Do you want to know the REAL reason? All the people they are discussing, want a home in a specific state; and city. And in just the right area. And with the right stores around , in a short easily drivable location.
People are no longer willing to start from scratch , and help build the community. Everyone uses our parents and grandparents as a comparison. Yes Their houses were cheap. But they were cheap for a reason.
TL;DR
They want a starter home, that I ready to go, requiring no effort, and gives them exactly the life they want.
You forgot curbing immigration to near zero for at least two decades.
Labor costs have no impact on housing affordability in the USA. Savings in labor, either from lower wages or automation or substituting more expensive materials that require less skill to install just gets divided between contractor and the government and government mandates. Building codes, zoning limitations including land use regulations and mandated parks, green spaces, etc, and requirements to use licensed skilled labor control housing supply. Combine that with steady monetary inflation that advantages existing home owners over new buyers and you get the situation that we have today.
@@radagast7200LOL damn, you really don’t like immigration huh. No, we shouldn’t stop it. But we should do it the way all the other countries that liberals love to brag about. You want a house? Show us you will bring a net positive into the country. Show us you can and will afford a place to live. Show us you will have a job ready for you.
REFORM ZONING LAWS
Why is nobody talking about the increased cost of basic homes due to the increase in requirements from the building codes?!?! The requirement for separate breakers for an electric charger in new homes and fire sprinkler systems alone add over 10k to the price of a basic home.
Yeah and then they want to mandate solar panels and heat pumps.
I'm not sure what percentage of new homes makes up the starter home segment of the market.
The house in a community is what you are buying, not just a house
And they want a community that is fully fleshed out, and that gives them their ideal life, right form the start . No effort required
Immigration... there are entire neighborhoods being bought up by me by "new arrivals." They are not good neighbors either, and there are people moving out of these school districts because of they impact they have had. They are not punished for being cruel and violent and the parents dont even seem to care and often encourage it. They see themselves as victims, all while doing this and acting entitled. It is absolutely unsustainable.
So, I see your comments? They aren’t being shadow banned?
@@jamesbizs all of my comments on the other thread are gone.
Me and my wife are Gen Z and own a home. Live in a more affordable metro area.
You only need 5 percent down on a house she’s saying 20 percent, which is an outdated measure
20% isn’t outdated. But it’s not the norm, Let alone in the context of a first time home buyer wanting a starter home . Hell, they might not even need 5%. Or they get one of the many grants available . But yeah, using 20% as the rule, was ignorant of them. There’s A completely different process for first time homebuyers
Twenty percent to avoid PMI. FHA is 3.5 percent I believe.
You can get a smaller loan for the 20% if you want to avoid the PMI.
20% protects you and the mortgage company in the event the hone prices fall
@@Hypercube9 the average down payment for a first time home buyer is 8 percent. He analysis using 20 percent does not make sense because she is talking about first time home buyers
A good place to start would be to get the Federal Reserve and the US gov OUT of real estate! Stop bailing out real estate! The problem now is that we have millions of Americans in homes that they overpaid for...good luck letting housing prices fall. Gov subsidies for first time homebuyers, desirable living space that is shrinking and constant bailouts of real estate....Yeah, this situation is getting way worse in the years ahead.
My wife and I are "millennials" and we bought our first house 10 years ago. We have 4 kids and no debt other than the mortgage. We were gifted nothing from relatives.
Hard work pays off.
Ten years ago the prices of everything were 4 times smaller but wages stayed the same
I bought a new house in 2022
What's your income in relation to the average income in the US?
I'm Gen X, and more or less the same for my wife and I. We paid off our student loans and a car loan, and scraped together enough for a down payment. Sold that house and had plenty for the down payment on our current home. Absent a collapse, we'll downsize next summer and be debt free for the rest of our days. If I ever take a selfie in Santorini, I'll be in my 50s, not in my 20s.
@@DanielGibbons-v9k Santorini is overrated and overpriced anyway 😂
Programs like what the government offers almost always drive prices up. While I am simplifying here, I can tell you as a 20 year real estate veteran that the government does far more harm than good in real estate. It's weird that on a ReasonTV video, a largely libertarian channel, we have several people expressing what government programs will be best. Slowly wane people off of government programs, slowly, require larger down payments, maybe not necessarily 20%, release builders and developers from so many crazy and insane government regs which account for roughly 25% of a new home and re-structure property tax policy and the cost of homes will drop over time. Currently there is a shortage of homes, but that won't be the case in a few more years hopefully. HOA's are a waste of money and cause unnecessary additional costs as well. To be clear, none of these are silver bullets, but less government intrustion into real estate will help drive down costs over time and make homes more affordable. Except for at very rare moments, it's still better to own than rent and the bottom line is we all have to lay our heads down somewhere at night, it might as well be a place you own so you have more control over your conditions and terms on which you pay. Real estate far exceeds the rate of general inflation and as a commission sales person, maybe I shouldn't care, just kidding, but that increase has to stop going up at above general inflation rates. And it likely will, but it will have a better chance of doing so without people making up fairytale stupid programs. The $25,000 program is another dumb program, you can just keep throwign money at stuff to fix it, nothinig, like nothing works that way, not education, not housing, not job creation, nothing! Just my $.02.
Solving housing could be easy, if painful. America needs to remove the 30-year fixed rate, removing FRMs would anchor mortgage rates to the economy and would eliminate many investment properties if the mortgage rate was normalized and not 'windows' to purchase
That’s inscrutable. What the heck are you proposing?
@@nunyabidness3075 my replies keep getting auto purged idk.
Basically if all loans were ARM, mortgage payments would be closer to the economy. investors would be less incentivised in single family homes.
It's really hard to fight inflation if half the population has 2% mortgage rates and half have 7%. The 2%ers can just spend more
@@gimpzilla Yeah, I get the algo attacks all the time. So aggravating.
We don’t know what’s best because the US government killed the free market on home finance well over a century ago and the hits keep coming.
IMO, rates only got below 4% because of a contrived market since 4% seems to be break even over inflation over most 30 year periods. The 30 year mortgage itself was created by government wonks to solve affordability issues in a past “crisis”. IMO, ARMs only are a banker and establishment wet dream. If allowed, someone would always invent the 20 year fixed and beat the ARM sellers with it.
The very existence of the 30 year along with all the guarantees, incentives, and other programs have raised home prices by increasing demand (which is the aggregate amount buyers will spend, not just the amount of willing and able buyers).
Anyways, just removing FRMs all at once would be catastrophic, and your desired result would not hold because government would still enter the game and break the connection at every crisis.
@@nunyabidness3075 my proposal is an attempt to remove housing as an asset class. Which as you point out would be extremely painful. It would be a ban on fixed rates, and tariffs/exchange to prevent funding outside the US.
Do I think it will happen, probably not. But I have a host of other opinions on the American dream/lifestyle. Including the idea we're not that far off where taking a year off work to build an old Sears blueprint will be cheaper than any traditional home.
But, I'm mostly in agreement we're debating semantics the future is just that
@@gimpzilla This whole idea of making homes not an investment or asset class or what ever seems divorced from reality. Currency is practically a necessity. It’s a device that sort of allows the breaking of the laws of physics. You can virtually transport time itself as well as resources. Land is a limited commodity, and a house is a bundle of labor and resources.
You can, of course build your own home without anyone else if you can steal land and hold it. It won’t be anything like a modern home. It won’t even have glass. It will still be an investment made by you, of your efforts. To build a modern home, you need the cooperation of tens of thousands of other people. How are you going to make the end result something that doesn’t reflect that?
I think the whole idea of getting businesses out of investing in single family homes is getting everything backwards. Businesses want to buy the homes because government interference is making everything else a tough game while it’s simultaneously protecting homes and home values.
Voters will vote for factory owners to provide all sorts of benefits thus making the factory less valuable. There’s all sorts of liabilities. But voters own homes, and don’t generally vote themselves out of money. In other words, the predators are in the villages eating the people because the people destroyed the wild herds that the predators fed upon.
Does that make sense?
No changes to zoning laws or building codes is going to produce the 5-20 million housing units needed to bring prices back into line. The problem is, there are a few supermetros you have to live in to have a decent career, and those places are FULL. Every square foot of land is spoken for in the SF bay, NYC, LA, and similar places. That makes land and building expensive and slow. The solution is to spread economic activity over a wider area; that probably requires some level of industrial policy at the federal level.
Most of us have just stopped giving financial advice. I used to but it appeared unwanted.
lol I'm 43 years old and can't afford a home, they can get in line
Here’s some advise to help get a home
1) stop order Uber eats or going out to dinner - I ate ramen noodles and Spegetti until I was 30
2) stop spending 1000s on make up fashion etc.
3) buy a cheep car not a sexy car
4) you dont need new clothes every season
5) you don’t need a new phone Ann tablet every year and you don’t need the 1500$ versions
6) it’s about choices and trade offs
I'm glad someone finally called this out. And if I may, I'd add sweat equity to your list.
If an employer want to to hire someone out of college for $40k-$50k a year when that amount isn't even three times the average rent in most cities, how are college grads suppose to survive when landlords won't rent them a place to live based on income? This is just one of the obstacles that Gen Z faces in the real world while Baby Boomers and most Gen Xer's claim these people are lazy, unmotivated or simply don't want to work. I'm a Gen Xer and even I can see these young college grads are being setup to fail.
I built several homes in high school, had to price out the projects as well. I saw that about 80% of home value was in the land.
Isn't that way anymore at least where I'm at and it used to be for sure.
Just had a house built across the street. A $350k 1400 sq ft house built on a $80k lot of land. So what land there is 20-25% of the price.
Because people from out of state think it's all a steal.
You don't need 20% down for a new home. You need 3.5% for a downpayment with an FHA loan. 3.5% of a 400,000 house in about 15k or under 25K when you throw in closing costs. I'm not saying the subsiding house is the right solution and this will increase home prices but be honest about how much you need to a 30 year mortage.
Sure, if the goal is simply to “buy a house.” The goal should be to “pay off the house,” otherwise you’re probably better off renting. You’re just paying interest in the early years of amortization and have repairs and maintenance on you as well.
We cannot fix anything as long as people complain about the price of homes but then turn around and use every zoning and environmental tool they can find to stop homes from being built in their area.
House prices rose in the 80s because of inflation driven by the rise of double income households. That won't be repeated.
How do most of you guys still make profit, even with the downturn of the economy and ever increasing life standards
Well, I picked the challenge to put my finances in order. Then I invested in cryptocurrency, stocks, through the assistance of my discretionary fund manager
Someone like expert Nancy Williams Laplace
Omg! Nancy's strategy has made winning trades a regular occurrence for me as well! It's a huge milestone when I think back on how it all started.
Amazing! I'm so surprised to see Ms. Nancy being mentioned here under this comment!
Trading is difficult, I'd spend the five grand on education for trading. It's not easy. Investing is different, that's easier. Short term or long term gain is the question.
That 25K is going to help me, a homeowner, increase equity in my home value. It’s not going to help new homebuyers.
Every home seeker MUST make $87 dollars pr hr to get an APARTMENT in SF Bay. They say it will require $325 dollars pr hour, not a day, an hour in the future.
want more houses, > decrease regulations, make it easier to build quicker
If more people could work from home, that would spread out the demand from some of these cities to some of the harder impacted areas of America that could use the youth and energy.
Everything is expensive as fuck. It's so annoying, just makes me want to pull my hair out. I contemplate how the wealthy people survive.
Seems to me the key metric would be a historical comparison of income for 25-35 year olds divided by average house price. Has that ratio really gone up so much that "younger people cannot afford homes"? My wife and I pulling together a down payment back in 2002 was painful on our combined income of $62k, while we were paying off our student loans and a car loan.
Gen z and millennials need to stop chasing homeownership and just buy Bitcoin
The only candidate with a home ownership policy solution is Chase Oliver
Because they've never heard of a starter home. Just want to jump into the nicest house out there.
Maybe. I sought and eventually succeeded in buying one, but it took about five years (even after I had money saved up and set aside for down payment and closing costs). They aren’t building starter homes, so supply for those are completely dependent on people selling theirs. It was pretty annoying to me always hearing or seeing new homes being built but they were half a million dollar luxury homes I couldn’t afford and had no real desire for. I just wanted to get out of renting and buy something I could pay off.
@@sapahn3039 That's true. You can't buy a new home as a starter home. You generally will only find older homes that are truly starter homes. 50 years ago most houses were only about a thousand to 1,500 square feet. Nowadays they start at 2,500. My house upstairs is 1200 and downstairs it's 800. And it turns 100 years old next month
Shoulda bought Bitcoin
Developer incentives crowd out more efficient private market development?
All incentives crowd out more efficient market based activities, and that’s supposed to be the point of them. If that were realized, we’d have a lot less of them. We should be looking at why the market is out of whack, and we don’t have to look far. The current situation is a result of a century of market interventions by government including things just like those being proposed now.
Don’t forget millennials are second largest generation which affects the market with more competition
Libertarianism is a fringe position
THEY CAN! Start moving. Get away from the coasts and metro centers you’re all convinced you NEED to live in! I bought my first house two years ago for $29,000! My second for $112,500! It’s possible! MOVE!
And do what for money?
@@tristan7216 I made over $100,000 last year gross. Stop making excuses.
@@tristan7216get a job?
There are plenty of metros across the US where you can make $100k with a professional degree, as a teacher, or as a skilled trade, where you can still buy existing stock houses in the $100s and $200s.
There's also the value of sweat equity - it's OK to buy the 1200SF 3/1 that hasn't been updated since 1964 out of an estate and put in your time to make it what you want.
Hey, can we have some real libertarian hosts on this channel? These two appear to think that Harris's goal of INCREASING government power over home construction, private property and free enterprise might have merits worth considering.
How about a full-throated advocacy for free people and a free market?
Move someplace you can afford.
It's all greedy baby boomers faults
BITCOIN
Bro arent GenZ like 20 years old? 😂
Chill, u need to work first AND THEN u buy a home, u dont buy a home right out of high school kiddos!
Young people can't afford homes because they do not know how to save money. They are entitled to eating out, coffee, media subscriptions, new car, clothes, student loans, charge cards, etc. It is simply a matter of priorities. We all did it. Young people today have been raised wrong. I blame the parents, not the foolish children.
I've bought both my houses with only 3% down. I put the least down possible to take advantage of the low interest rates. I wonder why others cant use the 3% down and then pay the PMI.