Economist explains why housing challenges won't go away
HTML-код
- Опубликовано: 3 авг 2024
- Sticky inflation has made the cost of living a pressure point for many Americans, especially low-income workers. The already squeezed US housing market is seeing a shortage of low-cost units, and economist and policy consultant Kathryn Anne Edwards joins Wealth! to discuss the crisis.
"What we know is that the number of affordable units is falling in the US, and that wages at the bottom are simply not growing to keep up with the housing market," Edwards explains. She notes that alongside high prices and trailing wages, there is an overall shortage of units.
However, building more units won't totally solve the housing market's issues: "The inflation crisis that we have right now has lent a lot of lens and spotlight on housing prices, because they seem to be keeping inflation from falling at the level that we'd want. But the income side gets so much less attention. The minimum wage right now is $7.25 an hour. If you work every hour of the year, you can afford $377 a month in rent. There is no amount of housing supply that is going to create a $377 a month apartment in almost every single metro area in the US, including most rural areas."
To combat this issue, she explains that the supply side of the market must invest in diverse housing options, from single-family homes to multi-family homes, to cater to all income levels. On the income side, she poses a larger, unanswered question.
"Why [do] we have... our labor market [structured] to produce so many working poor people?" She adds, "Nobody pays people as little as we tend to pay people in the US. So yes, there's lots of ways to unlock the housing market through more supply and more movement. But how do we generate better incomes at the bottom? Housing just offers us a lens to think about how our economy produces income."
Edwards pushes back on the widely-held notion that an interest rate cut from the Federal Reserve will fix the housing crisis. While it may help ease pressures, she explains:
"Most US households cannot declare victory over the amount of money they are spending, either on their rent or on their mortgage, even after CPI (Consumer Price Index) moves enough for us to feel like we've won over inflation. So I think it's critical to bring up this idea of affordability for Americans and just this fundamental disconnect between how much people earn and how much housing costs that will not go away even when we get a good CPI print... This is the time to think creatively, and it's time for policymakers to act."
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple (apple.co/3Rten0R) or Android (bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: / yahoofinance
Instagram: yahoofinanc...
TikTok: www.tiktok.com/@yahoofinance?...
Facebook: / yahoofinance
LinkedIn: / yahoo-finance
#yahoofinance #housing #interestrates
Wages are decreasing. People are paying experienced and talented workers what they used to pay entry level workers. Entry level workers literally can't enter the job market. It's like 2008 all over again. I never thought I would say an economy as bad as that, but here we are again because we never addressed the problems that caused it.
yup
Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money or you could hire a financial expert.
that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
My CFA ’ANGELA LYNN SCHILLING’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I looked her up, and I have sent her an email. I hope she gets back to me soon. Thank you
When you feel left behind, realize that if minimum wage would’ve went up with inflation since it’s inception in the 1930s like it was written into law. But they stopped doing that in the 1970s when we come off the gold standard, the min would be about $25 an hour to be actually be $24.10. So that’s why everyone feels so behind because that should be the minimum. Think about that
There seems to be more than enough luxury apartments, but not enough affordable apartments
price controls aren't going to fix anything
Wall St has now latched on to housing with MBS CDO financialization games, since they are out of actual socially productive investment ideas
we saw how that worked out 2007-2011
Nobody willing to sell assets when price is going up, with a price drop of 50 percent, and 30 years of lowering price, we will have excessive supply of housing.
All we have in metro areas is high end housing. There is no housing for the middle class whatsoever. The middle class can't pay 500,000 for a home with these high interest rates.
Rent is also skyrocketing due to these high mortgage rates. Now they will never go down until they sell them and the rates go down.
7.25 is to high dont pay them
7.25 mortgage loan rate is at historical norm. The housing prices are artificially inflated
Lower interest rates. Have to charge alot to cover your morgage
interest rates are at historical norms. The housing purchase prices are double what should be so prices will drop big-time just like 2008-2012
BOXABL homes