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This video is kind of bothering me as a homeowner you're bringing up stuff that's not even relevant not the number of houses that are being built there's houses built in my town all the time for this town it's a matter of the government has just doubled the value of your house which doubles your taxes . Would you like to talk to a homeowner who got a 4% loan 5 years ago cuz trust me number of houses is not what's hiking it if the government trying to get more taxes out of you I went from 400 taxes on my house to 900 this year
You failed to mention the real extent of the government in this whole process. They caused the interest rates to be low and deregulated things yes. They also set up specifically subprime lenders to "give" houses to people that couldn't afford them (buying votes). They then lied to the brokers as the subprime lenders started to fail, giving a false impression that the packages of loans were secured and even giving guarantees about the government helping if it turned out that the packages were unprofitable. At every point, letting the government distort the market was the real problem.
So.... there are enough houses. Especially if we arent worried about housing illegal immigrants(which, Im actually for creating legal means for them to naturalize, although on a longish timeline, with no welfare, minimum wage, or other protections or privileges... I remember an America that said things like "send me your tired, your poor, your huddled masses, yearning to breathe free! Thats something that should be available, but also requires commitment to fully enjoy!) .... The 08 collapse SHOULD have followed by a (MUCH) larger correction. They robbed us. They stole money from us on loan, and they bailed out the greedy and those who had been living outside their means! And theyve been stealing money ever since to keep kicking the can down the road! ALLOW FOR A CORRECTION! F CK THE BOOMERS. EAT THE FED
I was a loan officer from 2015-2021. I believe Inventory will ballon in the next 24/36 months as unemployment increases and commercial real estates implodes.
Fun story: End of 2019, we contracted a new house to be built on our land to replace the moldy old trailer we were in. Estimated final value of the property was $189,000. The house was finished in spring 2020 and when we rolled the construction loan into a regular 30 year fixed, the property was valued at $298,000. Now, four years later, the property is valued at just over $400,000. This is rural Ohio, no big changes to the area, no expanding city limits (shrinking actually). Nothing. Now I’m paying $4000 a year on property tax on top of mortgage interest, plus increased insurance premiums, etc. All that and I’m barely grossing more per year now than I was a decade ago… Should have stayed in the shitty mobile home.
Like I've been saying this whole video he's wrong it's the government increasing the value of your house to increase the taxes so they make more money mine just doubled again this year I'm up to 900 a year in taxes for my house it was only 50K it's currently worth 90kso that's what I pay and I can guarantee you it's not worth 90
I grew up in an area of Miami that is mostly made up of * middle-class Cuban Americans where just five years ago a house would cost 250-350k for the most part. Now the cheapest one goes for 600k. Forget working class being able to afford them. A professional lawyer, engineer, etc. would now struggle to buy a home in that same neighborhood. Something needs to change and it will change.
Oh yeah! You can definitely say that, it does worry me a bit, but not as much as it would worry the average guy, my investment portfolio has survived a couple of recessions unscathed
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I've been with "Eric Paul Elmer" for the last five years or so, and his returns have been pretty much amazing.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
It's even worse in Canada. The Mortgage payment as a % of income (MPPI) in Toronto is 52% for a Condo Unit, and 90% for a House. It's even worse in Vancouver where these numbers are 61% and 137%. Look "Housing Affordability Monitor" report from National Bank of Canada if you want the details.
A lot of foreign investors are buying up homes in Canada and the US too. I support free trade, but it all leaves a bad taste in my mouth. Especially when there's a home ownership crisis currently going on.
@@woahhbro2906 foreigners are not a risk to the economy. foreigners would have it easier if they were able to buy apartment buildings. but since building is illegal, since we live in a communist, centrally planned economy(thats what city planning is), we all get fucked with super lagging supply when demand spikes. also. fuck NIMBYs.
@@woahhbro2906yep. Here in NC Cary and Morrisville has been bought out by India. A company will buy it and they will send people here to live in some of them and manage the property in their area.
Blackrock and thel ikes is a problem but its just a symptom of the problem. The root of the problem is that there aren't enough homes where people want to live, because all the jobs are in cities and not small towns anymore. You have plenty of houses in smaller places, but people don't want to move there because there aren't jobs in towns like McMinnville Tennessee or Clovis New Mexico
@@alehaim I disagree. There are plenty of homes. But the notion of moving out of your parent's house after high school or college is a 20th century concept. Until the 1950s, humans had always stayed with their parents until they were ready to start their own family which required a new dwelling. We should be encouraging multi-generational housing.
The thing that really bothers me about housing in the US right now isn't just that houses have gotten ridiculously expensive, but that people are still buying them. I kept thinking, where are all of these rich a$$h0les coming from that are buying these properties? Then I realized, most of the people buying houses today can't afford them, but they're "buying" them anyway. We clearly didn't learn our lesson from 2008.
There's also property management companies that are buying up houses and leaving them empty to drive up rent There are more unoccupied single family homes in the United States than there are unhoused individuals.
@@Snp2024 That's BS. If they are actually losing money and don't see a return on investment they would be continuing to still buy more houses today. If they really thought it wasn't profitable they wouldn't still be doing it.
It really sucks because I'm being forced to move. The housing community I'm in told us that if we paid rent on time for the two years we were here, we would be automatically approved for the loan to purchase the house. But when it came time to apply, we were declined and they ghosted us when we asked why. We won't be able to renew after our current lease so we will HAVE to move by this time next year. It's very upsetting. Edit to add: We also did the math and the mortgage was going to be LESS than we are currently paying in rent but we were still denied.
I don't know what you mean by the housing community? Is it a condo, or were you trying to do a rental with the option to buy or something entirely different? But like everyone else said, you need a contract in writing to enforce the agreement. Assuming the lender is a different entity might have no clue what some sales person "promised." In quite a few places it's been cheaper to own than rent (for years), as long as you stay for x number of years, depending on closing, realtor, mortgage costs.
In the USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
I agree, 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+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Marisa Breton Dollard up and send her a message. You've truly motivated me. God's blessings on you.
Prices are too high. With rates not subsidised in ’24 and mortgage still high , currently seeking alternatives to maximize savings without an RV move or taking a loan. I’m seriously contemplating the latter.
if you are looking to invest in the stock market, I suggest you Consider a fiduciary with mortgage-backed securities knowledge for guidance. Prices today may look like dips tomorrow.
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
I remember living through the aftermath of the housing crisis. Was too young to understand the big picture, but I will NEVER forget being homeless my freshman year of high school. After finding a place to stay at my grandparents for a few months with my dad, we had to share a room and one day we ended up accidentally walking into the room to change at the same time, and we both had cuts everywhere. We both realized we were so depressed and stressed out living there we were self harming in secret. Next day we packed our stuff and squatted in our old home. Fixed it with stuff we got from scrapyards or leftovers from other people's renovation projects. Worst year of my damn life, and even now, it's not by much. This country failed me as a kid, is failing me as an adult, and we need change. Now.
Ever since I started working I've been chasing apartment rent prices, its always been one raise away from being something I can afford. Now that I'm about to hit 30 I still cant afford a simple apartment, they've gone up a minimum of 3x of what they were when I started working
Rent is nuts lately, no lie. But I've rented several times in my life, and I can tell you that what you're describing is the norm. You want affordable rent, you need roommates. Its been that way since the 90s, at least.
High interest rate causes house market declining, less people are buying houses. more empty comericial buildings are converted into residential condos wich results in rental declining.After covid, more people are working at home, artificial intelligence technology has eliminated many office jobs, and commercial buildings are vacant and converted into apartments.
You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
I would be happy to hire someone with a good reputation. How can I locate and thoroughly check them? We started thinking about the concept because we have a family lawyer who has periodically mentioned fiduciaries and we know how valuable they are.
I find this informative, curiously explored Vivian on the web, spotted her consulting page, and was able to schedule a call session with her, she shows quite a great deal of expertise from her resume.. very much appreciated
The transition of office buildings into apartments isn't prevalent enough to fix anything. Either the transition is taking too long, or they're branding them as "Luxury apartments" and charging out the ass for them. That's why as shown in this video, pricing hasn't dropped at ALL despite what might make sense in THEORY. We need more affordable housing. Not more "Luxury apartments, townhomes, and condos".
Another big issue is that more and more local governments are putting restrictions on minimum house size on new homes. Since bigger house means more tax revenue. This means that smaller homes that are great for 1st time buyers to affordably buy and save up equity, are unable to do so. Also artificially pushing up smaller home prices.
At the other end of the scale, most apartments being built are "luxury" 1-2 bed units all aimed at the very narrow professional couple market. Mostly because that's where the highest profits can be made.
@simonabunker That also is because "luxury" units are often exempt from rent control which in turn means they are actually worth investing in which means they are attractive purchases, thus worth building. Why would you put the money towards an apartment complex that isn't going to be attractive to buy because the buyer can't make money on it for the next ten years?
@@rustomkanishka Typically because "affordable" often translates to government subsidized housing which almost guarantees a sharp spike in crime in the area as can be seen in nearly every before and after of Section 8 housing. People rarely take issue with smaller affordable houses being built save for the very wealthy concerned about their investments.
The best possible analysis I've seen so far on the financial crises of the past and their impact on the present. You're right, I mostly saw you as "funny geopolitical cool bro," but this video blew me out of the water. I dont usually "thank", but this one deserves it
There won't be a housing crash, there's going to a non-necessity goods crash. A lot of tech will suffer, a lot of the tourist industries will scale back, a lot of small service industries like restaurants and landscaping businesses will suffer. Everyone's money is going into housing, basic clothes, food, etc, leaving little room for everything else.
Until they do QE infinity… Cut interest rates, stimulate spending, inject money, MORE… MORE… MORE. They did it in 2000 they did it in ‘08, they did it in ‘20 they’ll do it again, they will never fix their issues, it’s not profitable.
Oh believe me, there will be a housing crash but you're also correct that everything else will crash, too. I think that most of the inflation will come from the collapse of the value of the US dollar. A gallon of milk will be $20. And forget about driving when that happens 😂
An old man once said that the younger generation is lazy and not working hard enough to afford houses. That old man is 110% delusional in such a belief and this housing crisis demonstrates why.
So from down under. I have a full-time trade job, a minimum of 40 hours a week, and i can't afford to move out of a 6-person share house where we all have full-time work. School reunion a while back showed not one of us was able to get a loan for a home. The first home owners grant hasnt changed in so long it dosnt even cover a double digit % for down payments for home loans pre covid. It has only gotten worse from here, and most of us are already used to having to drive an hour for our places of work while the price of fuel is eating larger amount of the budgets. There have been weeks where i was unable to afford to go to work and have to dig into my holiday pay to make up the gap.
And the FHOG is a contributing factor in itself. I'm also Australian, I was primed to buy a house just before I lost my job in the first quarter of 2020. That same house sold last week for nearly double what it went for when I was negotiating for it. The speed of the market is insane. I'm genuinely worried about what I'm going to be able to do for my kids when it's their turn.
3 major factors 1. VC companies swooping in and buying whole communities 2. Forign governments buying whole communities 3. Bad infrastructure in the US
wrong, wrong and kinda wrong. government(mostly local) limiting the housing supply as well as federal money printing(inflation) has continued to skyrocket the cost.
in my area a studio apartment on the low end costs 950 a month, this doesn't end good also, there are corpos coming in, buying up land, and building aprtment complexes and homes, but they just outright refuse to pay the builders, so now we have a bunch of half built buildings lying around.
The day that speculative investing was allowed on residential property the American dream died. Property went from being a home for American's to live to "assets" meant to be flipped constantly on the stock market with no consideration for the people who just wanted a place to call home.
Allow me to add a facet here. My house is military. My significant other is active duty, and I’m a civilian. We are in a spot to move every four-ish years. Right now, the US Government housing stipend is far from even coming close to meet the goal of “95% of expenses to housing.” I am genuinely dreading our next move, potentially next year. When we purchased our home in 2021, we got a fantastic interest rate below 3%. Even with my spouse’s increase in rank (and pay with), our house payment will double if we try to make a lateral move to another duty station with a similar size house. Add to that the fact my spouse is USCG, so we have to live near the water. If we get stationed in Florida next, we will not be able to find a place to live. So many active duty families are really suffering. All their equity is completely lost. Many families will go from comfortable with some savings to completely in the hole savings depleted just by changing stations. On average, it costs a military family $7500 in losses every PCS. And that’s *AFTER* the money you get when you move.
Why not just move on post or rent an apartment until you guys get out of the military? Buying and selling a home every couple of years seems like a waste of money and time.
@@Yapping_Fox Very few units have housing in our particular branch. We have lived at four units now. Only two of those had housing available, the first was a complete fluke of us getting since it was reserved for high ranking members. My spouse was fresh out of boot camp, and they just kicked out a bunch of members for some drama. They needed to fill those housing units RFN and we just happened to walk in the door. There were about 12 available units for the entire unit. The other unit had mandatory housing, which was fine for us. They were small, since they were built in the 50’s, but they did update them periodically. There is considerable controversy about the housing there. Some units had mold issues, and some members suffered because of it. Our unit was pretty good with no major issues. Here’s the problem with renting. The government gives you a stipend for housing. It’s called BAH, or Basic Allowance for Housing. It’s variable based on location, rank, and time served. Years past, that has been enough to cover rent, utilities, and insurance. However, rent prices have jacked up, with no increase in BAH. Last year, the first big change in BAH calculations were made, but it was not enough. And that calculation is made where your base or unit’s zip code is located, not where you want to live. If your unit is located in a low cost of living area, but the only places to live are further out with higher prices, you’re stuck getting the amount for the lower cost. Military families are getting absolutely screwed in this situation.
@@shingshongshamalama For what my spouse does, that option is very limited. One base provided housing. And it will be the only one, now that my spouse is set in a particular career path. Every place we can go now has no housing.
@@Yapping_Fox Here is something else to consider. A friend of mine got orders to a recruitment center in Quantico, VA. NorVA is very expensive to live in, and most BAH is reflective of that. On average for my friend’s rank, the BAH is $3500/month. However, the recruiting office where he works has a BAH of only $2000/month. Any zip code surrounding the office is almost twice that amount. So, my friend got royally screwed.
Worth noting the price of lumber during the beginning of the pandemic went completely insane. In some cases a lack of inventory meant triple prices for the lumber and the homes built during that time passed that cost on to the buyers.
School teacher in Irving Texas, have a newborn baby girl; we already are priced out of rent. Appartment complexes are charging anywhere from 12 to 1500 for approx. 700 sqft, no washer drier hookups, but plenty of roaches.
We have a similar problem here, or people who buy them out to turn them into Air BnB properties Housing needs to be to live in first and foremost, and not as an investment vehicle.
@@zachanikwano Why? Why would you want to further restrict and regulate a sector of the economy where regulation and restriction has driven up housing prices already? Let's reverse course and OPEN things up so that people build more houses and apartment buildings.
There's a small town near Jacksonville fl named Yulee. My grandmother owned a home there, but when she died my aunt had to sell it and in do so a flood of companies would not leave her alone turns out almost everyone that lived there sold their house to a company not a person
Example of the housing crisis in action even in rural America. There are 5 new neighborhoods being built on my road. Every single house in every single neighborhood, is a Rental and are not for sale. These are not duplexes, or triplexes either. They are American-style suburban houses. The entirety of the five neighborhoods are owned and run by a single property management group that specializes in renting that are not local to the area. There is a sixth neighborhood, that is ranch-style single floor apartments, and their rent for a single bedroom single bath, is 4 times the area average two years ago when I was considering renting. The houses are astronomically higher than even that. I couldn't afford that back then, and my income has not changed in the time since.
That should help people on the lower end of the spectrum. Nice new rentals will attract higher income earners leaving the other spots for other people. More supply will put downward pressure on prices. If your income hasn't changed at all in two years you're either not moving anywhere professionally or your company is screwing you or both
@@jarodarmstrong509the problem is the trash apartments just increase their rates to slightly under the nice apartments. In my area you can save only like 20% by moving from a decent neighborhood to a trash apartment with gangs hanging out in the parking lot. As long as they don't sit vacant the rates will stay absurd but there's just not enough housing for them to be left empty.
The problem is that only works with regulation to stop companies just agreeing to not compete with each other. Those 6 neighbourhoods will all have the same prices, and local landlords will set their prices by that, probably putting them up if they charge more than their current rent it. Especially if it's big companies own lots of renting property they can afford to take the hit of it being empty for a while, but people can't take the hit of having no home, so eventually they'll cave and renting prices are then normalised at that price.@@jarodarmstrong509
And people still somehow think unregulated capitalism will somehow make the market work better. Like greed and massive corporations creating monopolies isn’t a main reason for America’s housing crisis and much of the inflation. Our government is a fucking joke and only cares about what makes a profit, it’s not about the people but the money under the table
In my area, housing is being built. The problem is that it’s all either section 8, or it’s expensive new neighborhood. There’s no mid level housing being built. And it’s been that way for a while now.
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
Agreed the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around $300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Hold up. We haven't "failed" to build homes. We're failing to grant PERMITS. Zoning and fees are just one thing preventing investors from doing the one thing they love: investing. Multifamily zoning is next to impossible in some areas, and single family homes require so many things that your materials alone are $150k. That doesn't include labor (which even IF you allowed less than minimum wage the market rate for a laborer will make your eyes water) and the land on which to build the house. Try building in San Francisco, or even St Paul MN. I'd love to see someone get that zoning passed. The ever present NIMBY will make you wish you never tried.
Investors are only interested in maximizing short term profits, nothing else. They couldn't care less about affordable housing. They want as much money as possible NOW.
I live in Florida where a developer doesn't need a zoning permit to build a housing community. It's a different nightmare of suburban planning and little infrastructure to support it. We have overcrowding in schools with under paid teachers. There's a lot of economic incentives to move from out of state but the socioeconomic divide is staggering.
Everyone's been promoting investing as a source of passive income, but with a 70-hour workweek and limited financial knowledge, how can I stay on top of things? Every RUclips video says "BUY, BUY!" but when and how do I sell for profit at the right time?
Well all i know is that you cannot go wrong taking profit at near high. No one ever went broke taking a 10% loss. It's best if you consult with a fiduciary advisor to get informed buying & selling decisions
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
Stacy Lynn Staples 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.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Everything said in this video is so relevant it makes me want to cry as a 25 year old stuck at childhood home my dad brought during the bottom of the recession
If you and your family get along why not live a home for a few extra years while you save up for the down payment. (Pitching in some rent to your parents probably wouldn't hurt). Then when the market is a bit better or you've climbed the ladder some, you'll be in a better position to purchase a house. (See what you can afford mortgage* wise by placing that amount aside for the down payment minus any given to parents. If it's not a burden nor stressful you'll know you can handle it). Mortgage plus escrow amount (taxes & insurance) maybe add the amount of Utilities later.
You can cry… Or you can save and invest your money as diligently as possible and be ready for when the interest rates is cut but before the rest of the buyers ramp up the price. I know it feels like an eternity, but just hang on a little bit more and you’ll be able to stretch your wings soon.
I’m 28. I recently loss my job I had saved up $50k over the past 5 years to buy a house. In 2019 I actually was a real estate agent and saw the prices balloon in front of my eyes. My 50k is now $35k and the the houses I sold for 275k back in 2019 are now $384k. I moved back in with my parents.
27:44 In 2006 I was working at a kinkos and printed flyers for realtors during this time. I read through the brochures while they would print and when the realtor came in to pick them up I asked “who could afford to buy a townhouse for 800k?” He replied with the fact that they would all be sold by the end of the week. I told him thats crazy and theres no way someone like me would be able to afford that price and that I, and people like me, would be his prospective market. He told me that the price of the house doesn’t matter, you buy it now and sell it a few years to make all your money back. Of corse that was crazy and I bought a sfh for 200k in 2010.
Great informative vid, HoE. That said, I really wish I had skipped this one. This is by far the most saddened or even downright depressed I have been after watching one of your vids. I see no light at the end of this tunnel, and it seems I won't be able to afford to buy in the foreseeable future.
Its a shortage in house building and availability. When you realize how much property is owned by corporations it makes it obvious what the fix could be. Limit the ownership of SFHs and condos. Big property management companies can own all the apartment buildings they want, but they shouldn't own entire neighborhoods. Banks and investment firms shouldnt be able to own any at all. Also should mention that its primarily up to congress to enact regulations to protect individuals from the predations of these big companies, and congress is made up of BOTH parties.
To add to that, you could argue that it's a monopoly for them to own single family homes as they own all the housing, rather than multi-family homes, apartments and condos.
Also we need to change zoning laws. If people want to build smaller single family units (lets also say townhouses or duplexes) we should be able to do that. A lot of people don't need large, immaculate homes. Some of us prefer 2 bed, 2 bath, one decent kitchen and a small green space or a shared local park. This is also an infrastructure problem too.
I moved out of the city and bought my house in a smaller city. 400k people down to 30k. My house costs half the price it would of if I didn't move. And instead of driving 30km one-way to work, I'm now 3km from work
400k people sounds cozy and nice. So much work here it's hard to move away. 9.8 million people sucks, especially at the 2-3000 people per square km range. Good money though.
My family lost our home back in 2021 due my father losing his job because of COVID and due to the absurd prices we havent even been able to move into an apartment. I'm really hoping something changes in the market soon
I see a sort of neo Georgism developing. In classic georgism, the only thing that gets taxed is land ownership, encouriging people to do profitable things like housing, factory building and farming with that land so it doesn't get sat on doing nothing but driving up the price. It partially addresses the issues of centralised wealth/authority, but the tendency of ruling classes developing ideologies and outlooks completely disconnected from reality remains unaffected.
A family home should not be taxed, but owning more than one home should be taxed. Furthermore, renter protections and quality standards should be in place that prevent slum lords and rent rackets. Oh wait... these things won't exist because your "elected" officials are corrupt.
I inherited a house that needs to be gutted and redone. I was going to sell it but with this housing market I’m keeping it. I might be paying a nice sized loan but I don’t have a mortgage.
We bought our house last summer for just below appraisal price while the area was selling for 30% over asking price specifically because it needed an 80% renno. We've saved up and done one thing at a time. It can be a great way to get your toe on the ladder but it's hella stressful
you on your way to cause a housing shortage and make the housing market orders of magnitude less liquid. what next. carmax cant buy my car? corporations cant own oil wells? corporations cant own banks? wtf are you talking about
@@cassieanderson3936 That only leads to more homeless people on the streets. No permits, no houses. Simple as. And don't claim that the state will pay for it all, it WON'T. They're too idiotic to work in a supermarket, let alone in any administrative entity of state-based authority. Oh, and those fines you're proposing? That comes at the expense of the taxpayer AND it leads to fewer people funding political rallies because most of these imbeciles are paid by the Real Estate Industry, or alternatively, got to where they were BECAUSE of the broken nature of the Real Estate Industry.
@@cassieanderson3936 Seriously, just levy massive taxes on owning multiple homes and the corps will ditch them. The then new permits and less BS regulation need to be forced on the gov who are serving the corps instead of their residents.
Yet FOX News, boomers, and CEOs will say it’s because you’re buying lattes and avocado toast. Oh, and, according to (I think it was) The Economist, millenial’s newest ‘splurging’ is on groceries.
@@JohnSmith-qp7xu Legitimate headline I'd read recently- save money by skip breakfast. Because you starving yourself is the solution for the greed of the rich.
@@JohnSmith-qp7xulol. Haven’t heard any boomers say that.all the boomers here feel it to dipshit as they can’t afford food and gas too numb nuts. I haven’t even heard Fox News say anything then again. If you hate Fox News why are you watching. But hey let’s blame others.
@@randymiller3918 there are problems with that though. For one, most home building companies are absolutely terrible. Secondly, new building requirements mean new houses are much more expensive to build comparatively, and lastly, building materials are so expensive that a builder wouldn't even consider building a house that they can't immediately sell, and there are less prospective buyer because the price of new houses is so high. I still think that a solution is to prevent any kind of company from buying any single family residential home, with exceptions only for construction companies that interest to retrofit or renovate old homes.
@@randymiller3918 I think I might know a good solution, Create a new tax bracket for Corporate holding of residential properties so companies have to pay a higher property tax on residential property than individuals do and use the additional money earmarked to subsidize new residential property construction. this should result in either Corporate holdings companies bleeding off properties as the investment is not longer so lucrative or it will results in those same corporations footing the bill for production of new homes devaluing their own assets.
The "not enough homes" angle just straight up isnt true. There are 4 completely empty subdivisions in my county alone because they built them in the middle of nowhere in kansas and want to charge California prices for them
There is a shortage of homes, but they're in the big cities where all the jobs have gone. The US economy, like much of the world, has become increasingly concentrated in a few dozen cities. If there were more good jobs in small towns and villages, then the problem would likely be much less acute.
@@Croz89 There's not a shortage of homes. There's a shortage of PERMITS to BUILD homes. These aren't the same thing, and the distinction is incredibly, ludicrously important.
The fact that many well-off americans back in the eighties had time for a fitness routine that caused the fitness industry to experience a boom shows just how good those times were. Nowadays, most people can't find the time to exercise.
My friend had moved to the US around 5-6 years ago for college. He got educated, and worked for one of the big tech companies. He returned to our home country. The American dream is dead, he said.
If a 25 year old person didn't buy a house 20 years ago, it's just their fault. They decided to keep playing games instead of investing in their future. Some of us were smart enough in kindergarten and bought our first property before primary school
You fool. I bought my first property when I was still in the womb. How I did it while being in a third world country in the middle of a famine? I just pulled myself up by my nonexistent bootstraps. Anyone can do it. Instead losers like you focused on things like developing consciousness and a body.
What do you think kindergarten is for? It's to teach you the important rules of fiscal responsibility, portfolio management, and not pissing yourself in public.
When I bought my home back in 2020 I got the first offer in the mail 10 days after I moved in. My favorite are the ones that include their family photo to tug at your heartstrings.
I just want to correct you the personal computer thing: Apple wasn't the first company to introduce a personal computer. In fact, the Apple II, Apple's first big seller, wasn't the most successful of the year it was introduced-1977. It was Tandy's TRS-80 that was the bestselling PC of that year, followed by Commodore's PET. The arguable first "personal computer" of the 8-bit era would be Processor Technology's Sol series, and that's a year after the MITS Altair-8800, which kickstarted the whole thing.
The 09 recession killed off a large chunk of the smaller local builders keeping them from building reasonable housing, the big firms just stop building or build overpriced housing when the market is not profitable enough for them, Over regulation is causing housing to become more complex and expensive as electrical, building, and fire codes add more to keep track of. Finally, the war public schools have waged on the Trades is finally reaping its harvest. I've spoke with several contractors in New England and NONE of them can find anyone under 30 willing to do the work or new kids want to be making foreman pay for apprentice work.
@@captlysander5613After your period as a journeyman, you would be able to cover rent. But these are skilled trades and anyone who spent money on a degree is going to be flustered about having to start over. Plumbers, electricians, septic guys etc usually make good money. People choosing those fields also lowers the cost of housing for everyone
@@captlysander5613 I've seen many people who would pass on construction jobs that paid $5-$10 more an hour because the work was too hard and instead milk welfare or work minimum wage. construction needs to pay more, but you cannot afford to build houses paying each new guy 70-100k a year.
@@blitz-625 when I finished my apprenticeship $8.75 an hour I started making $21 an hour for skilled labor (appliance repair) a framer or roofer who has no appreciable training or technical skills should make less than (starting out) that because less training and education investment. what I've seen in the Carolinas is roughly $7.25 minimum labor, $13-$17 intro construction, skilled trades $20-$25 when apprenticeships are finished. this info is about 8-10 years old, but the general ratios should hold true. fast food/ retail jobs that require zero training or specific skills should be the lowest paying. difficult unskilled manual labor jobs such as construction should pay roughly 30-50% more with room for pay raises and the trades should start at least 100% more as there is a major time investment to gather the skills and training, with a much higher cap. that would incentivize people to go into the starved construction jobs and those who want to advance can specialize into the trades which are critically understaffed. Mind you I spent 7 years as a minimum (honestly less than) wage pizza delivery driver, I now make $32 an hour and most of my friends who stayed in college are 100K in debt and are making $9-$15 an hour not even using their useless degrees,
Interestingly here in NZ builders are going out of business as people can't afford to build, even as our wood (which is now processed in China not here) is piling up on the docks because demand for materials is dropping but they can't drop the price of materials.
@@OldOneTooth The first is solved by dropping the price, and recupping at least some of the cost, even if a loss, "some" is always better than "none." And the latter is boardroom levels, and should by hyper aware of princing, shipping, etc. Before dividends become a thing, stopping shipping should have been a thing way before. So, sorry, but I have to ask again, why? To be fair, I'm in the states, and I've dealt with companies having to sell on a low market. They plan for that, there are contingencies, and failing that, they collapse. That's business. So what's the deal in there?
@@techpriest6962 remind me of how many billions the cost of climate disasters has increased by again. How much insurance has risen as a result. How the scarcity of easily accessible oil has pushed up gas prices. Then look at the much lower lifetime cost of green infrastructure, whether it's saving energy usage with insulation, climatic warming or renewable energy sources.
Outside of banks, many people use housing as an investment. I know someone that lives in a military town, many of the new properties being built around the town are multiple floor apartments. The single family homes prices have doubled. For example, my friend bought for $120k in mid 2010, his property now is assessed on the low $200k. The painful part is that property taxes have also doubled. I think people in the house renting gig should drop the hustle en masse!
Oh boohoo. I was 12 in 2008 and I own a house whose value is double what I paid in 2022. Stop being a victim if it’s too expensive where you live then move!
@@GordonFreeman307 Even the "affordable" places to live are 3x their fair market rates making them unaffordable on top of 2x rent prices that prevent renters from developing the savings needed to buy a home. The fact you blame the people instead of the corps and gov that created the problem just makes you a contributor to the problem.
You are a bad person. I live in the middle of nowhere and a 2b 2bath house costs over 250,000. Renting cost 1,200 a month and you have to put down 2000 to even get your foot in the door. The studio apartments cost 900 to 1000 a month in a town where jobs are scarce unless you work for the railroad or hospital @@GordonFreeman307
Budgeting expert here. That means a single person would have to make roughly $10,500/month. I generally suggest people spend max 25% in rent. I'm not sure why banks and landlords say 30% max. That's too high. All budgeting experts agree half of gross income should cover ALL living expenses. So if you're not pulling in $2625/ a WEEK, you can't afford to live. Rent isn't much better. I work 40hrs and am topped off at Kroger at $20/hr and would have to work 120/hrs a week to afford the average studio apartment in Vancouver, WA ($1500).
Immigration ain't that big of a problem, but we definitely feel the price surges of everything, especially privatization of the markets like Healthcare is really having impacts on a bunch of people over here
My husband and I were approved for a VA home loan, but the last two years the cost of housing near the lab we work in are just so far out of what we can afford and VA dosent really do trailer homes as a rule. At this point we're looking up to an hour and a half away but it's not looking great.
Your breakdown of ALL the different angles that created the GFC was actually very well-rounded and without a political agenda. Instant subscription from me.
I was stupid lucky to get my house when I did, the area around me exploded, and new houses were being built around here for 2x the price of my house at time of purchase. Now my house is almost worth $80k above what I paid, and the new subdivisions going up nearby are double that or triple in some cases; almost $500k for a house in my little corner of upstate South Carolina. I can just afford the mortgage on my house when I bought it, had I been asked to buy it nowadays I wouldn't be able to, and the rent prices in my area make it so that I wouldn't be able to afford to save up the money for a down payment either. The loan I'm on was a USDA first-time homeowner loan, and the interest rate reflects that, so much higher than a normal house loan simply because it's my first house and I had no down payment. I can't imagine going back to renting, and the prospect of selling this place to get a new one is, frankly, terrifying. Especially if it was in my original hometown of Chicago or another major city.
Investors are a major issue for us in my area. Wasatch front in utah. The average home cost has gone from $275,000 in 2018 to $450,000 today. The average rent for a 1 bedroom apartment is $1600.
My husband and I were saving to buy and decided to remain renters. The number of scams going on right now is depressing. Every house that we contacted about was a scam or shady in some way. Friends who have successfully bought houses in the past few years have serious buyers regret because whoever flipped their houses simply camouflaged the issues. Painting over mold, laying new flooring over rotting sub floor, etc. All the quality property around here is Air BNB because the landlords make a much higher profit short term. The last apartment we lived in is air BNB only now and that landlord is converting all their properties the same way.
Thank you for doing this episode. I'm going to re-watch a couple times to get this info straight in my head, but I think you did a great job of synthizing everything that has gone on in the last 20-40 years in the housing market. All the best to you and yours - channels like this are my joy.
Im not one for alot of federal laws. But now I feel like there has to be some sort of regulation put in place to prevent those who are professional landlords from buying more than 10 properties. But i know that would be difficult to put in place or regulate. Its infuriating
Heres a fun social experiment: The next time you hear someone say "building is going to lower my property value", ask them how their property taxes are treating them. 99% of the time, theyre going to complain about it. Because with skyrocketing home values, comes skyrocketing property taxes. Unfortunately, many homeowners haven't figured that out yet. I mean, would you rather have a slight drop in your home value and lower tax obligation because an apartment complex went up six blocks away? Or would you rather your home value be valued so high that you can never sell it because no one can afford it?
I lucked out and bought a house for $82k at 3.125% fixed for 30 years. It's a smaller house built in 1940 which is partly why I got it for so cheap since it's less than half the size of what people would consider "standard" today. Still cheaper than rent on a BS 1 bedroom "efficiency" apartment at the time (and no laundry room so I'd have to go laundromat) which was $800/month vs the under $600/month I'm paying on my mortgage.
I use to work at a bank as an analyst and my job was to go over some of these bad loans. This was in 2016 and they still had people living in their home that hasn’t paid any mortgage since 2008.
I have to admit, at first i took you for just another sensational history channel, but your videos about China, Boeing and Cuba really turned me around. I really appreciate that you don't hold back on your oppinion and say it very clearly when things are effed up. You have a great way of delivering information and keeping me hooked
In my area, they still want you to make 3x your rent. There is no shortage of houses and apartments in my area. None of them are affordable at the average individual income. Most are *barely* affordable to a 2-person household both working for average wage. Most houses are priced for the median which for my area is about 10,000 higher than the average income. And if you've never rented before, you'd better have some family who can afford both their home and yours to qualify as a cosigner for you. It's insane.
Social security benefits are $1,200/month and one bedroom apartments are $1,100...so to have 3 times the rent, Social security checks would have to be $3,200/mo. If Congress cannot fix it, there will be millions of elderly homeless people
There are houses that were built near my neighborhood, that are BRAND NEW being sold for 800,000 dollars. That's absolutely ludicrous and people are paying for that.
I also get annoyed when normies don't have a clue but are so confident about what they say. I appreciate that he has a lot of knowledge but he trusts the government way too much maybe. He can't say he doesn't when he trusts what the gov says about it. Also, people who try to say they are fair by pushing false equivalences.
Canadian in the Niagara Region here, we get tons of those spam calls to sell our house, as well as mountains of junk mail for it too. Its fun to lead them on when I'm bored some days, and ask for an insane offer on the house, while also specifying restrictions that would lock them into the ownership for longer than they intend to for flipping it
The only reason my husband and i got a house. 1. We bought it in the middle of lockdown. 2. Its a house we really didnt want, didnt check most of our boxes. But it gave us a mortgage cheaper than any rent in the area. 3. We are probably living here the rest of our lives
The sad part of our crisis is that there are thousands of abandoned houses and properties in our country. Its the same issue as fudds at a gun show, "I know what I got sonny" its all hyper inflated, over bloated and people want more for less.
I’m a Real Estate Agent in Tennessee. Shits going to get BAD. With investment companies and banks buying up all the affordable single family homes and could be dumped at the first economic turbulence is VERY concerning. The “Great Recession” is going to look like a healthy pullback if this plays out.
I ran away from California, but when I did live there my rent was 2700$ a month for a 1 room apartment 700sqf.. that was before utilities and bills...😮
Okay but the fact that I finally understand both the 2008 market crash and what’s going on now is amazing. This video is so well put together that I feel confident in my understanding of the subject. Great video!!!
I really really wish I could say I have sympathy, but the rich guys saw it coming... Did nothing... Because they were getting more rich off it. They knew what they were doing, messed around, and found out. The little guys didn't deserve anything that affected them, but the big guys deserved everything they got hit with. No sympathy. Yes the little guys shouldn't have been irresponsible, but the big guys knew what they were doing. What's worse is, it's hard not to see the patterns and see where the wind is blowing. Oh well.
I bought my home in 2018 for $170k and I thought I paid too much fr, it’s now worth around $250k and the home prices in my area have completely gone insane 🤯
A renter who can show 5+ years of payments without delinquency should be able to get a mortgage with $0 down as long as the payments match their historical payments.
Thank you so much for covering this! There are an extraordinarily large amount of people from prior generations that do not understand why its so difficult for people in my generation and below (Born in 89, unsure of which letter I am at this point) to save or purchase a home.
My wife and I got our first house in May 2020 at $239,000 at 3.6%, we refinanced in 2021 to 2.3% today nearly 3 years later, we couldn’t even afford our own house as the value increased $80,000 and the rates are over double.
@30:40 This is literally my job. I am a title searcher for town records. See who owns properties and what they have etc. You would not believe how often mortgages are being released by unrelated banks. Sometimes it is just a record error, but other times they are literally releasing a mortgage on a property they dont own, no longer own, or never owned.
Check out the sponsor of today’s video that made all of this possible. With RUclips as it is this is vital aura.com/historyofeverything and see where your information has been compromised online
Im good
This video is kind of bothering me as a homeowner you're bringing up stuff that's not even relevant not the number of houses that are being built there's houses built in my town all the time for this town it's a matter of the government has just doubled the value of your house which doubles your taxes . Would you like to talk to a homeowner who got a 4% loan 5 years ago cuz trust me number of houses is not what's hiking it if the government trying to get more taxes out of you I went from 400 taxes on my house to 900 this year
You failed to mention the real extent of the government in this whole process. They caused the interest rates to be low and deregulated things yes. They also set up specifically subprime lenders to "give" houses to people that couldn't afford them (buying votes). They then lied to the brokers as the subprime lenders started to fail, giving a false impression that the packages of loans were secured and even giving guarantees about the government helping if it turned out that the packages were unprofitable.
At every point, letting the government distort the market was the real problem.
So.... there are enough houses. Especially if we arent worried about housing illegal immigrants(which, Im actually for creating legal means for them to naturalize, although on a longish timeline, with no welfare, minimum wage, or other protections or privileges... I remember an America that said things like "send me your tired, your poor, your huddled masses, yearning to breathe free! Thats something that should be available, but also requires commitment to fully enjoy!)
.... The 08 collapse SHOULD have followed by a (MUCH) larger correction.
They robbed us. They stole money from us on loan, and they bailed out the greedy and those who had been living outside their means!
And theyve been stealing money ever since to keep kicking the can down the road!
ALLOW FOR A CORRECTION!
F CK THE BOOMERS. EAT THE FED
I was a loan officer from 2015-2021. I believe Inventory will ballon in the next 24/36 months as unemployment increases and commercial real estates implodes.
Fun story:
End of 2019, we contracted a new house to be built on our land to replace the moldy old trailer we were in. Estimated final value of the property was $189,000.
The house was finished in spring 2020 and when we rolled the construction loan into a regular 30 year fixed, the property was valued at $298,000.
Now, four years later, the property is valued at just over $400,000.
This is rural Ohio, no big changes to the area, no expanding city limits (shrinking actually). Nothing.
Now I’m paying $4000 a year on property tax on top of mortgage interest, plus increased insurance premiums, etc.
All that and I’m barely grossing more per year now than I was a decade ago…
Should have stayed in the shitty mobile home.
Sounds like a very similar place my mother is in right now.
I am so sorry.
Like I've been saying this whole video he's wrong it's the government increasing the value of your house to increase the taxes so they make more money mine just doubled again this year I'm up to 900 a year in taxes for my house it was only 50K it's currently worth 90kso that's what I pay and I can guarantee you it's not worth 90
Maybe cash out and relocate somewhere with lower property tax?
I'm buying out my loan at 3-4%
I grew up in an area of Miami that is mostly made up of * middle-class Cuban Americans where just five years ago a house would cost 250-350k for the most part.
Now the cheapest one goes for 600k. Forget working class being able to afford them. A professional lawyer, engineer, etc. would now struggle to buy a home in that same neighborhood. Something needs to change and it will change.
Oh yeah! You can definitely say that, it does worry me a bit, but not as much as it would worry the average guy, my investment portfolio has survived a couple of recessions unscathed
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I've been with "Eric Paul Elmer" for the last five years or so, and his returns have been pretty much amazing.
i already copied and put the his name on the web and i'm really impressed with his
website, thanks for the recommendation
Oh great, I love living in historical events
You and me both 😭
"May your life be interesting" was a curse, not a blessing.
every fucking year in the last 10 year is a historical event in the usa
....I've had enough thanks, take back to the 90's when things weren't flat out chaos.
I'm kind of tired of living through these historical events.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
It's even worse in Canada. The Mortgage payment as a % of income (MPPI) in Toronto is 52% for a Condo Unit, and 90% for a House. It's even worse in Vancouver where these numbers are 61% and 137%. Look "Housing Affordability Monitor" report from National Bank of Canada if you want the details.
A lot of foreign investors are buying up homes in Canada and the US too. I support free trade, but it all leaves a bad taste in my mouth. Especially when there's a home ownership crisis currently going on.
@@woahhbro2906 foreigners are not a risk to the economy. foreigners would have it easier if they were able to buy apartment buildings. but since building is illegal, since we live in a communist, centrally planned economy(thats what city planning is), we all get fucked with super lagging supply when demand spikes. also. fuck NIMBYs.
They weren't complaining when they had a ton of money in their pocket. Nickelin' and dimin' Arizonans.
@@woahhbro2906yep. Here in NC Cary and Morrisville has been bought out by India. A company will buy it and they will send people here to live in some of them and manage the property in their area.
I tried to capitalize 90% cause MY EYES BUGGED OUT LIKE AN 80S TV SHOW
"Hear me out...what if we turned all Americans into a renter class?" - Blackrock, probably
“I think feudalism was peak humanity” - Blackrock, probably
"You will own nothing and like it" - BlackRock, probably
Blackrock and thel ikes is a problem but its just a symptom of the problem. The root of the problem is that there aren't enough homes where people want to live, because all the jobs are in cities and not small towns anymore. You have plenty of houses in smaller places, but people don't want to move there because there aren't jobs in towns like McMinnville Tennessee or Clovis New Mexico
Blackstone: **Cackles maniacally in the background**
@@alehaim I disagree. There are plenty of homes. But the notion of moving out of your parent's house after high school or college is a 20th century concept. Until the 1950s, humans had always stayed with their parents until they were ready to start their own family which required a new dwelling. We should be encouraging multi-generational housing.
The thing that really bothers me about housing in the US right now isn't just that houses have gotten ridiculously expensive, but that people are still buying them. I kept thinking, where are all of these rich a$$h0les coming from that are buying these properties? Then I realized, most of the people buying houses today can't afford them, but they're "buying" them anyway. We clearly didn't learn our lesson from 2008.
There's also property management companies that are buying up houses and leaving them empty to drive up rent
There are more unoccupied single family homes in the United States than there are unhoused individuals.
There is a scary amount money generated by this.
@@choczynskigood thing is many of them are loosing money. CEO of black rock was crying few weeks ago bcz of losses.
@@Snp2024
That's BS. If they are actually losing money and don't see a return on investment they would be continuing to still buy more houses today.
If they really thought it wasn't profitable they wouldn't still be doing it.
Corporations are buying them up by the dozens
39:45 wait, 95? you're younger than me???
I always thought you were like, mid 30s. The power of having a beard and being married, I guess.
This was THE major outtake from this video ))
damn, stakuya being a year younger than me has me feeling insecure
@@Ld7snakehe's a decade younger than me..... 😅
Holy shit lol I'm 92. He's younger than me??? I thought he was at least my age 😂
It really sucks because I'm being forced to move. The housing community I'm in told us that if we paid rent on time for the two years we were here, we would be automatically approved for the loan to purchase the house. But when it came time to apply, we were declined and they ghosted us when we asked why. We won't be able to renew after our current lease so we will HAVE to move by this time next year. It's very upsetting.
Edit to add: We also did the math and the mortgage was going to be LESS than we are currently paying in rent but we were still denied.
If it's not in writing then you're probably screwed. If it's in writing a lawyer should be able to help.
do you have that in writting becuse it could be a case if you do.
If you have that in writing then lawyers will devour them for you.
I hope that was all in writing because if not, you were scammed.
I don't know what you mean by the housing community? Is it a condo, or were you trying to do a rental with the option to buy or something entirely different?
But like everyone else said, you need a contract in writing to enforce the agreement. Assuming the lender is a different entity might have no clue what some sales person "promised."
In quite a few places it's been cheaper to own than rent (for years), as long as you stay for x number of years, depending on closing, realtor, mortgage costs.
In the USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
I agree, 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+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Marisa Breton Dollard up and send her a message. You've truly motivated me. God's blessings on you.
Prices are too high. With rates not subsidised in ’24 and mortgage still high , currently seeking alternatives to maximize savings without an RV move or taking a loan. I’m seriously contemplating the latter.
Affording our mortgage is tough as well. I have suggested cashing in, renting or relocating, and investing the rest in the stock market.
If you can afford to relocate, you should manage the mortgage.
if you are looking to invest in the stock market, I suggest you Consider a fiduciary with mortgage-backed securities knowledge for guidance. Prices today may look like dips tomorrow.
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
How can i reach this adviser?
I remember living through the aftermath of the housing crisis. Was too young to understand the big picture, but I will NEVER forget being homeless my freshman year of high school. After finding a place to stay at my grandparents for a few months with my dad, we had to share a room and one day we ended up accidentally walking into the room to change at the same time, and we both had cuts everywhere. We both realized we were so depressed and stressed out living there we were self harming in secret.
Next day we packed our stuff and squatted in our old home. Fixed it with stuff we got from scrapyards or leftovers from other people's renovation projects.
Worst year of my damn life, and even now, it's not by much. This country failed me as a kid, is failing me as an adult, and we need change.
Now.
I can only imagine,
People forget that every problem we have was created and allowed by our legislators. Its not just the corps
Ever since I started working I've been chasing apartment rent prices, its always been one raise away from being something I can afford. Now that I'm about to hit 30 I still cant afford a simple apartment, they've gone up a minimum of 3x of what they were when I started working
Roomies my friend. That's how I lived comfortably in NYC on $45k a year
@@jarodarmstrong509 that sounds like a terrible time.
Rent is nuts lately, no lie. But I've rented several times in my life, and I can tell you that what you're describing is the norm. You want affordable rent, you need roommates. Its been that way since the 90s, at least.
It's a setup, they want a part of your monthly income . _Forever_ .
Born in 1994. When I turned 20 rent was 450$ for 2 bedrooms. Same place is 1400 now. Average income has only doubled
High interest rate causes house market declining, less people are buying houses. more empty comericial buildings are converted into residential condos wich results in rental declining.After covid, more people are working at home, artificial intelligence technology has eliminated many office jobs, and commercial buildings are vacant and converted into apartments.
You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
I would be happy to hire someone with a good reputation. How can I locate and thoroughly check them? We started thinking about the concept because we have a family lawyer who has periodically mentioned fiduciaries and we know how valuable they are.
I find this informative, curiously explored Vivian on the web, spotted her consulting page, and was able to schedule a call session with her, she shows quite a great deal of expertise from her resume.. very much appreciated
😊y r 13:14 hug😊😅 13:14 et😊y err😊trt7i 13:14 😂I I🎉o😂😢i😂😊😅u😊y😮😊🎉ý😮y😂it😅😅😅😅😅@@PASCALDAB
The transition of office buildings into apartments isn't prevalent enough to fix anything. Either the transition is taking too long, or they're branding them as "Luxury apartments" and charging out the ass for them. That's why as shown in this video, pricing hasn't dropped at ALL despite what might make sense in THEORY. We need more affordable housing. Not more "Luxury apartments, townhomes, and condos".
Another big issue is that more and more local governments are putting restrictions on minimum house size on new homes. Since bigger house means more tax revenue.
This means that smaller homes that are great for 1st time buyers to affordably buy and save up equity, are unable to do so. Also artificially pushing up smaller home prices.
We call it consolidation: strengthen the financial power of politicians & big businesses, weaken the power of individuals.
At the other end of the scale, most apartments being built are "luxury" 1-2 bed units all aimed at the very narrow professional couple market. Mostly because that's where the highest profits can be made.
@simonabunker That also is because "luxury" units are often exempt from rent control which in turn means they are actually worth investing in which means they are attractive purchases, thus worth building.
Why would you put the money towards an apartment complex that isn't going to be attractive to buy because the buyer can't make money on it for the next ten years?
I dunno if this is related, but NIMBYs are a thing.
A lot of folks are angered by the very idea of affordable housing anywhere near their own homes.
@@rustomkanishka Typically because "affordable" often translates to government subsidized housing which almost guarantees a sharp spike in crime in the area as can be seen in nearly every before and after of Section 8 housing. People rarely take issue with smaller affordable houses being built save for the very wealthy concerned about their investments.
The best possible analysis I've seen so far on the financial crises of the past and their impact on the present.
You're right, I mostly saw you as "funny geopolitical cool bro," but this video blew me out of the water.
I dont usually "thank", but this one deserves it
There won't be a housing crash, there's going to a non-necessity goods crash. A lot of tech will suffer, a lot of the tourist industries will scale back, a lot of small service industries like restaurants and landscaping businesses will suffer. Everyone's money is going into housing, basic clothes, food, etc, leaving little room for everything else.
Until they do QE infinity…
Cut interest rates, stimulate spending, inject money, MORE… MORE… MORE.
They did it in 2000 they did it in ‘08, they did it in ‘20 they’ll do it again, they will never fix their issues, it’s not profitable.
Yup, seeing this in the exzotic pets industry.
Oh believe me, there will be a housing crash but you're also correct that everything else will crash, too. I think that most of the inflation will come from the collapse of the value of the US dollar. A gallon of milk will be $20. And forget about driving when that happens 😂
Exactly…
We're already there. Food and gas prices have been high for the last three years.
An old man once said that the younger generation is lazy and not working hard enough to afford houses. That old man is 110% delusional in such a belief and this housing crisis demonstrates why.
The old man benefited from New Deal/War on Poverty Era Policies, organized labor and Social Security
So from down under.
I have a full-time trade job, a minimum of 40 hours a week, and i can't afford to move out of a 6-person share house where we all have full-time work.
School reunion a while back showed not one of us was able to get a loan for a home.
The first home owners grant hasnt changed in so long it dosnt even cover a double digit % for down payments for home loans pre covid.
It has only gotten worse from here, and most of us are already used to having to drive an hour for our places of work while the price of fuel is eating larger amount of the budgets.
There have been weeks where i was unable to afford to go to work and have to dig into my holiday pay to make up the gap.
And the FHOG is a contributing factor in itself. I'm also Australian, I was primed to buy a house just before I lost my job in the first quarter of 2020. That same house sold last week for nearly double what it went for when I was negotiating for it. The speed of the market is insane. I'm genuinely worried about what I'm going to be able to do for my kids when it's their turn.
Tades make good money. Push for more pay, we deserve it and few are willing to step up. I hope you're in a good union.
3 major factors
1. VC companies swooping in and buying whole communities
2. Forign governments buying whole communities
3. Bad infrastructure in the US
Damn straight, and the gov't won't do a thing about it because they'd lose everything if they solved the problem.
wrong, wrong and kinda wrong.
government(mostly local) limiting the housing supply as well as federal money printing(inflation) has continued to skyrocket the cost.
Really it was everybody moving at once twice for Covid moving out and then moving back all the same time
Wrong
4.Immigration
in my area a studio apartment on the low end costs 950 a month, this doesn't end good
also, there are corpos coming in, buying up land, and building aprtment complexes and homes, but they just outright refuse to pay the builders, so now we have a bunch of half built buildings lying around.
Atl, low end is going 1400-1500 right now. Average 1 bedroom is 1800.
The day that speculative investing was allowed on residential property the American dream died. Property went from being a home for American's to live to "assets" meant to be flipped constantly on the stock market with no consideration for the people who just wanted a place to call home.
Allow me to add a facet here.
My house is military. My significant other is active duty, and I’m a civilian. We are in a spot to move every four-ish years. Right now, the US Government housing stipend is far from even coming close to meet the goal of “95% of expenses to housing.” I am genuinely dreading our next move, potentially next year. When we purchased our home in 2021, we got a fantastic interest rate below 3%. Even with my spouse’s increase in rank (and pay with), our house payment will double if we try to make a lateral move to another duty station with a similar size house. Add to that the fact my spouse is USCG, so we have to live near the water. If we get stationed in Florida next, we will not be able to find a place to live. So many active duty families are really suffering. All their equity is completely lost. Many families will go from comfortable with some savings to completely in the hole savings depleted just by changing stations. On average, it costs a military family $7500 in losses every PCS. And that’s *AFTER* the money you get when you move.
If the government _demands_ that you move, the government should _provide_ you housing. End of discussion.
Why not just move on post or rent an apartment until you guys get out of the military? Buying and selling a home every couple of years seems like a waste of money and time.
@@Yapping_Fox Very few units have housing in our particular branch. We have lived at four units now. Only two of those had housing available, the first was a complete fluke of us getting since it was reserved for high ranking members. My spouse was fresh out of boot camp, and they just kicked out a bunch of members for some drama. They needed to fill those housing units RFN and we just happened to walk in the door. There were about 12 available units for the entire unit.
The other unit had mandatory housing, which was fine for us. They were small, since they were built in the 50’s, but they did update them periodically. There is considerable controversy about the housing there. Some units had mold issues, and some members suffered because of it. Our unit was pretty good with no major issues.
Here’s the problem with renting. The government gives you a stipend for housing. It’s called BAH, or Basic Allowance for Housing. It’s variable based on location, rank, and time served. Years past, that has been enough to cover rent, utilities, and insurance. However, rent prices have jacked up, with no increase in BAH. Last year, the first big change in BAH calculations were made, but it was not enough. And that calculation is made where your base or unit’s zip code is located, not where you want to live. If your unit is located in a low cost of living area, but the only places to live are further out with higher prices, you’re stuck getting the amount for the lower cost.
Military families are getting absolutely screwed in this situation.
@@shingshongshamalama For what my spouse does, that option is very limited. One base provided housing. And it will be the only one, now that my spouse is set in a particular career path. Every place we can go now has no housing.
@@Yapping_Fox Here is something else to consider. A friend of mine got orders to a recruitment center in Quantico, VA. NorVA is very expensive to live in, and most BAH is reflective of that. On average for my friend’s rank, the BAH is $3500/month. However, the recruiting office where he works has a BAH of only $2000/month. Any zip code surrounding the office is almost twice that amount. So, my friend got royally screwed.
Worth noting the price of lumber during the beginning of the pandemic went completely insane. In some cases a lack of inventory meant triple prices for the lumber and the homes built during that time passed that cost on to the buyers.
School teacher in Irving Texas, have a newborn baby girl; we already are priced out of rent.
Appartment complexes are charging anywhere from 12 to 1500 for approx. 700 sqft, no washer drier hookups, but plenty of roaches.
On my block, 3 houses have been sold in the last couple of years. All to companies that rent them out.
This is a major problem and ahoukd be outlawed.
@@MrDmitriRavenoff Renting should be outlawed?
We have a similar problem here, or people who buy them out to turn them into Air BnB properties
Housing needs to be to live in first and foremost, and not as an investment vehicle.
@@mansquatch2260
Too many companies buying out neighborhoods to make forever rentals should be outlawed
@@zachanikwano Why? Why would you want to further restrict and regulate a sector of the economy where regulation and restriction has driven up housing prices already?
Let's reverse course and OPEN things up so that people build more houses and apartment buildings.
There's a small town near Jacksonville fl named Yulee. My grandmother owned a home there, but when she died my aunt had to sell it and in do so a flood of companies would not leave her alone turns out almost everyone that lived there sold their house to a company not a person
Example of the housing crisis in action even in rural America. There are 5 new neighborhoods being built on my road. Every single house in every single neighborhood, is a Rental and are not for sale. These are not duplexes, or triplexes either. They are American-style suburban houses. The entirety of the five neighborhoods are owned and run by a single property management group that specializes in renting that are not local to the area. There is a sixth neighborhood, that is ranch-style single floor apartments, and their rent for a single bedroom single bath, is 4 times the area average two years ago when I was considering renting. The houses are astronomically higher than even that.
I couldn't afford that back then, and my income has not changed in the time since.
That should help people on the lower end of the spectrum. Nice new rentals will attract higher income earners leaving the other spots for other people. More supply will put downward pressure on prices. If your income hasn't changed at all in two years you're either not moving anywhere professionally or your company is screwing you or both
@@jarodarmstrong509the problem is the trash apartments just increase their rates to slightly under the nice apartments. In my area you can save only like 20% by moving from a decent neighborhood to a trash apartment with gangs hanging out in the parking lot. As long as they don't sit vacant the rates will stay absurd but there's just not enough housing for them to be left empty.
alot of build-to-lease is taking over america
The problem is that only works with regulation to stop companies just agreeing to not compete with each other.
Those 6 neighbourhoods will all have the same prices, and local landlords will set their prices by that, probably putting them up if they charge more than their current rent it.
Especially if it's big companies own lots of renting property they can afford to take the hit of it being empty for a while, but people can't take the hit of having no home, so eventually they'll cave and renting prices are then normalised at that price.@@jarodarmstrong509
And people still somehow think unregulated capitalism will somehow make the market work better. Like greed and massive corporations creating monopolies isn’t a main reason for America’s housing crisis and much of the inflation. Our government is a fucking joke and only cares about what makes a profit, it’s not about the people but the money under the table
In my area, housing is being built. The problem is that it’s all either section 8, or it’s expensive new neighborhood. There’s no mid level housing being built. And it’s been that way for a while now.
A: We're all broke and the houses are too expensive
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
Agreed the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around $300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Hold up. We haven't "failed" to build homes. We're failing to grant PERMITS. Zoning and fees are just one thing preventing investors from doing the one thing they love: investing. Multifamily zoning is next to impossible in some areas, and single family homes require so many things that your materials alone are $150k. That doesn't include labor (which even IF you allowed less than minimum wage the market rate for a laborer will make your eyes water) and the land on which to build the house. Try building in San Francisco, or even St Paul MN. I'd love to see someone get that zoning passed. The ever present NIMBY will make you wish you never tried.
Bro it's $8K just for the permit to build a tiny office on my house. Big daddy government is insane when it comes to building.
Don't forget rent controls that make it unprofitable to build less expensive housing while luxury housing is exempt from rent control laws.
Blame rich racists for building laws being so fucked in the US
Investors are only interested in maximizing short term profits, nothing else. They couldn't care less about affordable housing. They want as much money as possible NOW.
I live in Florida where a developer doesn't need a zoning permit to build a housing community. It's a different nightmare of suburban planning and little infrastructure to support it. We have overcrowding in schools with under paid teachers. There's a lot of economic incentives to move from out of state but the socioeconomic divide is staggering.
Everyone's been promoting investing as a source of passive income, but with a 70-hour workweek and limited financial knowledge, how can I stay on top of things? Every RUclips video says "BUY, BUY!" but when and how do I sell for profit at the right time?
Well all i know is that you cannot go wrong taking profit at near high. No one ever went broke taking a 10% loss. It's best if you consult with a fiduciary advisor to get informed buying & selling decisions
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
Stacy Lynn Staples 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.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Everything said in this video is so relevant it makes me want to cry as a 25 year old stuck at childhood home my dad brought during the bottom of the recession
If you and your family get along why not live a home for a few extra years while you save up for the down payment. (Pitching in some rent to your parents probably wouldn't hurt). Then when the market is a bit better or you've climbed the ladder some, you'll be in a better position to purchase a house.
(See what you can afford mortgage* wise by placing that amount aside for the down payment minus any given to parents. If it's not a burden nor stressful you'll know you can handle it).
Mortgage plus escrow amount (taxes & insurance) maybe add the amount of Utilities later.
You can cry…
Or you can save and invest your money as diligently as possible and be ready for when the interest rates is cut but before the rest of the buyers ramp up the price. I know it feels like an eternity, but just hang on a little bit more and you’ll be able to stretch your wings soon.
@@rudyardganuelas6254 I am…
Don’t feel bad, there are people in their 30s and 40s who are moving back in with their parents, bringing their spouse and kids with them.
I’m 28. I recently loss my job I had saved up $50k over the past 5 years to buy a house. In 2019 I actually was a real estate agent and saw the prices balloon in front of my eyes. My 50k is now $35k and the the houses I sold for 275k back in 2019 are now $384k. I moved back in with my parents.
27:44 In 2006 I was working at a kinkos and printed flyers for realtors during this time. I read through the brochures while they would print and when the realtor came in to pick them up I asked “who could afford to buy a townhouse for 800k?” He replied with the fact that they would all be sold by the end of the week. I told him thats crazy and theres no way someone like me would be able to afford that price and that I, and people like me, would be his prospective market. He told me that the price of the house doesn’t matter, you buy it now and sell it a few years to make all your money back. Of corse that was crazy and I bought a sfh for 200k in 2010.
Great informative vid, HoE.
That said, I really wish I had skipped this one. This is by far the most saddened or even downright depressed I have been after watching one of your vids.
I see no light at the end of this tunnel, and it seems I won't be able to afford to buy in the foreseeable future.
Honestly at this point, let’s just rush to withdraw all of our money and crash the economy, restart this stuff
Its a shortage in house building and availability. When you realize how much property is owned by corporations it makes it obvious what the fix could be. Limit the ownership of SFHs and condos. Big property management companies can own all the apartment buildings they want, but they shouldn't own entire neighborhoods. Banks and investment firms shouldnt be able to own any at all.
Also should mention that its primarily up to congress to enact regulations to protect individuals from the predations of these big companies, and congress is made up of BOTH parties.
To add to that, you could argue that it's a monopoly for them to own single family homes as they own all the housing, rather than multi-family homes, apartments and condos.
Also we need to change zoning laws. If people want to build smaller single family units (lets also say townhouses or duplexes) we should be able to do that. A lot of people don't need large, immaculate homes. Some of us prefer 2 bed, 2 bath, one decent kitchen and a small green space or a shared local park. This is also an infrastructure problem too.
I moved out of the city and bought my house in a smaller city. 400k people down to 30k. My house costs half the price it would of if I didn't move. And instead of driving 30km one-way to work, I'm now 3km from work
Yep, I live 30 min from a mid sized town about 100k people. Plenty of jobs. But houses in my area are cheap
400k people sounds cozy and nice. So much work here it's hard to move away. 9.8 million people sucks, especially at the 2-3000 people per square km range. Good money though.
Good for you lmao
Anyone remember the early 2000s fad of "house flipping"? Yeah, blame that too
still going on
My family lost our home back in 2021 due my father losing his job because of COVID and due to the absurd prices we havent even been able to move into an apartment. I'm really hoping something changes in the market soon
Same happened to my family back when I was 5, so didn't fully understand. Hope thing's get better for you soon.
Massive penalties for empty houses and increasingly steep taxes on owning multiple homes, let’s do it
Honestly don't blame anyone for squatting on a vacant property.
I see a sort of neo Georgism developing. In classic georgism, the only thing that gets taxed is land ownership, encouriging people to do profitable things like housing, factory building and farming with that land so it doesn't get sat on doing nothing but driving up the price.
It partially addresses the issues of centralised wealth/authority, but the tendency of ruling classes developing ideologies and outlooks completely disconnected from reality remains unaffected.
All I read from that was "boohoo, people don't deserve to have things that I can't have!" 😭
@@GenerationX1984 Depends who owns it and if the purpose is to live there or scam the owner.
A family home should not be taxed, but owning more than one home should be taxed.
Furthermore, renter protections and quality standards should be in place that prevent slum lords and rent rackets.
Oh wait... these things won't exist because your "elected" officials are corrupt.
I inherited a house that needs to be gutted and redone. I was going to sell it but with this housing market I’m keeping it. I might be paying a nice sized loan but I don’t have a mortgage.
A win's a win!
Isn’t that just debt with a different name on it?
We bought our house last summer for just below appraisal price while the area was selling for 30% over asking price specifically because it needed an 80% renno. We've saved up and done one thing at a time. It can be a great way to get your toe on the ladder but it's hella stressful
Never sell RE
Corporations shouldn't be allowed to own single family homes
How you wanna regulate that though?
you on your way to cause a housing shortage and make the housing market orders of magnitude less liquid.
what next. carmax cant buy my car? corporations cant own oil wells? corporations cant own banks? wtf are you talking about
@@littlegiantj8761By making it fucking illegal. Absurd fines, revoked permits, whatever it takes
@@cassieanderson3936 That only leads to more homeless people on the streets. No permits, no houses. Simple as. And don't claim that the state will pay for it all, it WON'T. They're too idiotic to work in a supermarket, let alone in any administrative entity of state-based authority. Oh, and those fines you're proposing? That comes at the expense of the taxpayer AND it leads to fewer people funding political rallies because most of these imbeciles are paid by the Real Estate Industry, or alternatively, got to where they were BECAUSE of the broken nature of the Real Estate Industry.
@@cassieanderson3936 Seriously, just levy massive taxes on owning multiple homes and the corps will ditch them.
The then new permits and less BS regulation need to be forced on the gov who are serving the corps instead of their residents.
This is the best and most objective breakdown of how we got to this point in the housing market, great video
Personal computer was not introduced by apple, Historian card revoked.
with 2 incomes we can afford to rent a 3 bedroom apartment for 1750$ a month leaving about 300$ after bills and taxes. isnt life grand
Yet FOX News, boomers, and CEOs will say it’s because you’re buying lattes and avocado toast. Oh, and, according to (I think it was) The Economist, millenial’s newest ‘splurging’ is on groceries.
@@JohnSmith-qp7xu
Legitimate headline I'd read recently- save money by skip breakfast. Because you starving yourself is the solution for the greed of the rich.
@@JohnSmith-qp7xulol. Haven’t heard any boomers say that.all the boomers here feel it to dipshit as they can’t afford food and gas too numb nuts. I haven’t even heard Fox News say anything then again. If you hate Fox News why are you watching.
But hey let’s blame others.
Shoot, in my state that's the price of 2 rooms in a shared space.
@@JohnSmith-qp7xuhow tf do they categorize buying groceries as "splurging" ?! What are we supposed to do, starve?
I'm still going to point fingers. Blackrock and other massive corporations should be banned from buying residential homes.
They would just create shell companies. I think the answer is to allow more homes to be built. Flood the market.
@@randymiller3918 there are problems with that though. For one, most home building companies are absolutely terrible. Secondly, new building requirements mean new houses are much more expensive to build comparatively, and lastly, building materials are so expensive that a builder wouldn't even consider building a house that they can't immediately sell, and there are less prospective buyer because the price of new houses is so high. I still think that a solution is to prevent any kind of company from buying any single family residential home, with exceptions only for construction companies that interest to retrofit or renovate old homes.
@@randymiller3918 I think I might know a good solution, Create a new tax bracket for Corporate holding of residential properties so companies have to pay a higher property tax on residential property than individuals do and use the additional money earmarked to subsidize new residential property construction.
this should result in either Corporate holdings companies bleeding off properties as the investment is not longer so lucrative or it will results in those same corporations footing the bill for production of new homes devaluing their own assets.
55% of my income is going into rent before electricity
The best slaves are those that dont realize theyre slaves
@@j.pershing2197 at least the Army gave me free housing for five years. This civilian housing program is stupid
@@gatorman5547
😆
The most complete and cogent look at this terrible crisis. 'Build 3 million starter houses.' That's what we need to do. Thanks for your efforts.
The "not enough homes" angle just straight up isnt true. There are 4 completely empty subdivisions in my county alone because they built them in the middle of nowhere in kansas and want to charge California prices for them
There is a shortage of homes, but they're in the big cities where all the jobs have gone. The US economy, like much of the world, has become increasingly concentrated in a few dozen cities. If there were more good jobs in small towns and villages, then the problem would likely be much less acute.
@@Croz89 I live 20 minutes drive from a major city
@@Sunflowercowboy But you said the homes were in the middle of nowhere?
@@Croz89 yeah welcome to the Midwest and the south. Cities surrounded for miles and miles by corn and forest.
@@Croz89 There's not a shortage of homes. There's a shortage of PERMITS to BUILD homes. These aren't the same thing, and the distinction is incredibly, ludicrously important.
The fact that many well-off americans back in the eighties had time for a fitness routine that caused the fitness industry to experience a boom shows just how good those times were.
Nowadays, most people can't find the time to exercise.
My friend had moved to the US around 5-6 years ago for college. He got educated, and worked for one of the big tech companies.
He returned to our home country.
The American dream is dead, he said.
That fitness only came into existence because corporations poisoned the food supply making you all fat
I work anywhere from 40 to 60 hours a week and still go the gym 5 to 6 days a week.
There's no acceptable excuse to be out of shape.
@nickporter9937 "I work anywhere from 40 to 60 hours a week"
Great for you, bro.
Fitness boomed as a response to a food supply intentionally poisoned by large corporations
If a 25 year old person didn't buy a house 20 years ago, it's just their fault. They decided to keep playing games instead of investing in their future. Some of us were smart enough in kindergarten and bought our first property before primary school
You waited that long?
I got my first rental while still in daycare. Gotta get that cashflow working for you as soon as possible
@@Lam-ba-Lam due, DUDE, oh my gosh. I've heard of people like you but never got lucky enough to meet one. You're my hero!!!
you bought a house in 2005. why? you shouldve waited until 2009, my god. the options were immense.
You fool. I bought my first property when I was still in the womb. How I did it while being in a third world country in the middle of a famine? I just pulled myself up by my nonexistent bootstraps. Anyone can do it. Instead losers like you focused on things like developing consciousness and a body.
What do you think kindergarten is for? It's to teach you the important rules of fiscal responsibility, portfolio management, and not pissing yourself in public.
I’m in London and this is absolutely the case here too.
I received so many low ball cash offers and I haven’t been a homeowner for that long at all.
When I bought my home back in 2020 I got the first offer in the mail 10 days after I moved in. My favorite are the ones that include their family photo to tug at your heartstrings.
We are seeing the END of first time home ownership in the US.
I just want to correct you the personal computer thing: Apple wasn't the first company to introduce a personal computer. In fact, the Apple II, Apple's first big seller, wasn't the most successful of the year it was introduced-1977. It was Tandy's TRS-80 that was the bestselling PC of that year, followed by Commodore's PET. The arguable first "personal computer" of the 8-bit era would be Processor Technology's Sol series, and that's a year after the MITS Altair-8800, which kickstarted the whole thing.
The 09 recession killed off a large chunk of the smaller local builders keeping them from building reasonable housing, the big firms just stop building or build overpriced housing when the market is not profitable enough for them, Over regulation is causing housing to become more complex and expensive as electrical, building, and fire codes add more to keep track of. Finally, the war public schools have waged on the Trades is finally reaping its harvest. I've spoke with several contractors in New England and NONE of them can find anyone under 30 willing to do the work or new kids want to be making foreman pay for apprentice work.
Would you be willing to work 40 hours a week to not be able to cover your rent? It's a vicious cycle.
@@captlysander5613After your period as a journeyman, you would be able to cover rent. But these are skilled trades and anyone who spent money on a degree is going to be flustered about having to start over. Plumbers, electricians, septic guys etc usually make good money. People choosing those fields also lowers the cost of housing for everyone
Trade work should be started at least $19-22. But, they want new guys to start least then that.
@@captlysander5613 I've seen many people who would pass on construction jobs that paid $5-$10 more an hour because the work was too hard and instead milk welfare or work minimum wage. construction needs to pay more, but you cannot afford to build houses paying each new guy 70-100k a year.
@@blitz-625 when I finished my apprenticeship $8.75 an hour I started making $21 an hour for skilled labor (appliance repair) a framer or roofer who has no appreciable training or technical skills should make less than (starting out) that because less training and education investment. what I've seen in the Carolinas is roughly $7.25 minimum labor, $13-$17 intro construction, skilled trades $20-$25 when apprenticeships are finished. this info is about 8-10 years old, but the general ratios should hold true. fast food/ retail jobs that require zero training or specific skills should be the lowest paying. difficult unskilled manual labor jobs such as construction should pay roughly 30-50% more with room for pay raises and the trades should start at least 100% more as there is a major time investment to gather the skills and training, with a much higher cap. that would incentivize people to go into the starved construction jobs and those who want to advance can specialize into the trades which are critically understaffed. Mind you I spent 7 years as a minimum (honestly less than) wage pizza delivery driver, I now make $32 an hour and most of my friends who stayed in college are 100K in debt and are making $9-$15 an hour not even using their useless degrees,
Interestingly here in NZ builders are going out of business as people can't afford to build, even as our wood (which is now processed in China not here) is piling up on the docks because demand for materials is dropping but they can't drop the price of materials.
Curious... why can't they drop the price of materials?
@@JesterMotley presumably lack of competition and set costs, dividends to meet.
@@OldOneTooth The first is solved by dropping the price, and recupping at least some of the cost, even if a loss, "some" is always better than "none." And the latter is boardroom levels, and should by hyper aware of princing, shipping, etc. Before dividends become a thing, stopping shipping should have been a thing way before.
So, sorry, but I have to ask again, why? To be fair, I'm in the states, and I've dealt with companies having to sell on a low market. They plan for that, there are contingencies, and failing that, they collapse. That's business. So what's the deal in there?
Almost like needless "Green" policy raises material and energy costs.
@@techpriest6962 remind me of how many billions the cost of climate disasters has increased by again. How much insurance has risen as a result. How the scarcity of easily accessible oil has pushed up gas prices. Then look at the much lower lifetime cost of green infrastructure, whether it's saving energy usage with insulation, climatic warming or renewable energy sources.
Outside of banks, many people use housing as an investment. I know someone that lives in a military town, many of the new properties being built around the town are multiple floor apartments. The single family homes prices have doubled. For example, my friend bought for $120k in mid 2010, his property now is assessed on the low $200k. The painful part is that property taxes have also doubled. I think people in the house renting gig should drop the hustle en masse!
Ive known since 2008 when i was 14 id never be able to own a house
Oh boohoo. I was 12 in 2008 and I own a house whose value is double what I paid in 2022. Stop being a victim if it’s too expensive where you live then move!
@@GordonFreeman307 Even the "affordable" places to live are 3x their fair market rates making them unaffordable on top of 2x rent prices that prevent renters from developing the savings needed to buy a home.
The fact you blame the people instead of the corps and gov that created the problem just makes you a contributor to the problem.
You are a bad person.
I live in the middle of nowhere and a 2b 2bath house costs over 250,000.
Renting cost 1,200 a month and you have to put down 2000 to even get your foot in the door. The studio apartments cost 900 to 1000 a month in a town where jobs are scarce unless you work for the railroad or hospital @@GordonFreeman307
Budgeting expert here. That means a single person would have to make roughly $10,500/month. I generally suggest people spend max 25% in rent. I'm not sure why banks and landlords say 30% max. That's too high. All budgeting experts agree half of gross income should cover ALL living expenses.
So if you're not pulling in $2625/ a WEEK, you can't afford to live. Rent isn't much better. I work 40hrs and am topped off at Kroger at $20/hr and would have to work 120/hrs a week to afford the average studio apartment in Vancouver, WA ($1500).
Germany is having fun as well rn 😅
Please send help 😢
Oh a completely unrelated note... what does Germany's current immigration situation look like?
@@radagast7200 not so dramatic in my opinion
Yeah we have some problems
Immigration ain't that big of a problem, but we definitely feel the price surges of everything, especially privatization of the markets like Healthcare is really having impacts on a bunch of people over here
@@thunderball1398 Haha. Then you are not paying attention...
Build? Sure maybe. BUT STOP COMPANIES FROM SNATCHING THEM UP BEFORE WE CAN EVEN SEE THEY'RE ON THE MARKET!!!!!!!
My husband and I were approved for a VA home loan, but the last two years the cost of housing near the lab we work in are just so far out of what we can afford and VA dosent really do trailer homes as a rule. At this point we're looking up to an hour and a half away but it's not looking great.
Your breakdown of ALL the different angles that created the GFC was actually very well-rounded and without a political agenda. Instant subscription from me.
I was stupid lucky to get my house when I did, the area around me exploded, and new houses were being built around here for 2x the price of my house at time of purchase. Now my house is almost worth $80k above what I paid, and the new subdivisions going up nearby are double that or triple in some cases; almost $500k for a house in my little corner of upstate South Carolina. I can just afford the mortgage on my house when I bought it, had I been asked to buy it nowadays I wouldn't be able to, and the rent prices in my area make it so that I wouldn't be able to afford to save up the money for a down payment either. The loan I'm on was a USDA first-time homeowner loan, and the interest rate reflects that, so much higher than a normal house loan simply because it's my first house and I had no down payment.
I can't imagine going back to renting, and the prospect of selling this place to get a new one is, frankly, terrifying. Especially if it was in my original hometown of Chicago or another major city.
Investors are a major issue for us in my area. Wasatch front in utah. The average home cost has gone from $275,000 in 2018 to $450,000 today. The average rent for a 1 bedroom apartment is $1600.
My husband and I were saving to buy and decided to remain renters. The number of scams going on right now is depressing. Every house that we contacted about was a scam or shady in some way. Friends who have successfully bought houses in the past few years have serious buyers regret because whoever flipped their houses simply camouflaged the issues. Painting over mold, laying new flooring over rotting sub floor, etc.
All the quality property around here is Air BNB because the landlords make a much higher profit short term. The last apartment we lived in is air BNB only now and that landlord is converting all their properties the same way.
My father has a house in SoCal. I get calls, emails and texts asking me to convince my dad to sell our family home. It's wild.
Excellent video!
Please also do a video on the housing affordability problem in Australia, which is absolutely insane!
This is the entire western world this is happening to. USA, Canada, UK, NZ, Aus, everywhere.
Thank you for doing this episode. I'm going to re-watch a couple times to get this info straight in my head, but I think you did a great job of synthizing everything that has gone on in the last 20-40 years in the housing market. All the best to you and yours - channels like this are my joy.
Im not one for alot of federal laws. But now I feel like there has to be some sort of regulation put in place to prevent those who are professional landlords from buying more than 10 properties. But i know that would be difficult to put in place or regulate. Its infuriating
Heres a fun social experiment: The next time you hear someone say "building is going to lower my property value", ask them how their property taxes are treating them. 99% of the time, theyre going to complain about it. Because with skyrocketing home values, comes skyrocketing property taxes. Unfortunately, many homeowners haven't figured that out yet.
I mean, would you rather have a slight drop in your home value and lower tax obligation because an apartment complex went up six blocks away? Or would you rather your home value be valued so high that you can never sell it because no one can afford it?
I lucked out and bought a house for $82k at 3.125% fixed for 30 years. It's a smaller house built in 1940 which is partly why I got it for so cheap since it's less than half the size of what people would consider "standard" today. Still cheaper than rent on a BS 1 bedroom "efficiency" apartment at the time (and no laundry room so I'd have to go laundromat) which was $800/month vs the under $600/month I'm paying on my mortgage.
I use to work at a bank as an analyst and my job was to go over some of these bad loans. This was in 2016 and they still had people living in their home that hasn’t paid any mortgage since 2008.
As a retired renter, I was forced to emigrate, and my ss income was above average.
I have to admit, at first i took you for just another sensational history channel, but your videos about China, Boeing and Cuba really turned me around. I really appreciate that you don't hold back on your oppinion and say it very clearly when things are effed up. You have a great way of delivering information and keeping me hooked
In my area, they still want you to make 3x your rent. There is no shortage of houses and apartments in my area. None of them are affordable at the average individual income. Most are *barely* affordable to a 2-person household both working for average wage. Most houses are priced for the median which for my area is about 10,000 higher than the average income. And if you've never rented before, you'd better have some family who can afford both their home and yours to qualify as a cosigner for you. It's insane.
Social security benefits are $1,200/month and one bedroom apartments are $1,100...so to have 3 times the rent, Social security checks would have to be $3,200/mo. If Congress cannot fix it, there will be millions of elderly homeless people
This is the best video I've ever seen on the subject. Great stuff.
There are houses that were built near my neighborhood, that are BRAND NEW being sold for 800,000 dollars. That's absolutely ludicrous and people are paying for that.
COVID didn’t do any of this to us. The idiotic government response did.
I also get annoyed when normies don't have a clue but are so confident about what they say. I appreciate that he has a lot of knowledge but he trusts the government way too much maybe. He can't say he doesn't when he trusts what the gov says about it.
Also, people who try to say they are fair by pushing false equivalences.
For the love of god, can I get one year without major historical events?
The bleedimg edge of history sucks don't it.
@@Iluvlollipops That it does
As a Historian, sorry to tell you, but it is the curse of our species...
This is the calm before the storm. Buckle up.
May you live in interesting times...
Canadian in the Niagara Region here, we get tons of those spam calls to sell our house, as well as mountains of junk mail for it too. Its fun to lead them on when I'm bored some days, and ask for an insane offer on the house, while also specifying restrictions that would lock them into the ownership for longer than they intend to for flipping it
I have to 2 roommates to afford a less than 600 sqft apartment and im a chemist
guess you should start cooking meth, its a lot better paying than actual work in your skillset.
The only reason my husband and i got a house.
1. We bought it in the middle of lockdown.
2. Its a house we really didnt want, didnt check most of our boxes. But it gave us a mortgage cheaper than any rent in the area.
3. We are probably living here the rest of our lives
On the last part, it's hard from a business point to not accept free money when everyone is doing it even when it's not the right thing to do.
The sad part of our crisis is that there are thousands of abandoned houses and properties in our country. Its the same issue as fudds at a gun show, "I know what I got sonny" its all hyper inflated, over bloated and people want more for less.
Late Gen X here, and I fully expect to *never* be able to afford a home in the US.
I’m a Real Estate Agent in Tennessee. Shits going to get BAD. With investment companies and banks buying up all the affordable single family homes and could be dumped at the first economic turbulence is VERY concerning. The “Great Recession” is going to look like a healthy pullback if this plays out.
I ran away from California, but when I did live there my rent was 2700$ a month for a 1 room apartment 700sqf.. that was before utilities and bills...😮
TLDR: Boomers bought all the cheap houses and jacked up the price and politicians red tape new construction.
And corporations buy up everything else
Okay but the fact that I finally understand both the 2008 market crash and what’s going on now is amazing. This video is so well put together that I feel confident in my understanding of the subject. Great video!!!
I really really wish I could say I have sympathy, but the rich guys saw it coming... Did nothing... Because they were getting more rich off it. They knew what they were doing, messed around, and found out. The little guys didn't deserve anything that affected them, but the big guys deserved everything they got hit with. No sympathy. Yes the little guys shouldn't have been irresponsible, but the big guys knew what they were doing.
What's worse is, it's hard not to see the patterns and see where the wind is blowing. Oh well.
I bought my home in 2018 for $170k and I thought I paid too much fr, it’s now worth around $250k and the home prices in my area have completely gone insane 🤯
A renter who can show 5+ years of payments without delinquency should be able to get a mortgage with $0 down as long as the payments match their historical payments.
I doubt they wanna wait around to make any kind of return on their investment.
Thank you so much for covering this! There are an extraordinarily large amount of people from prior generations that do not understand why its so difficult for people in my generation and below (Born in 89, unsure of which letter I am at this point) to save or purchase a home.
My wife and I got our first house in May 2020 at $239,000 at 3.6%, we refinanced in 2021 to 2.3% today nearly 3 years later, we couldn’t even afford our own house as the value increased $80,000 and the rates are over double.
@30:40 This is literally my job. I am a title searcher for town records. See who owns properties and what they have etc. You would not believe how often mortgages are being released by unrelated banks. Sometimes it is just a record error, but other times they are literally releasing a mortgage on a property they dont own, no longer own, or never owned.