This is the reason that so many people are homeless. They can't afford the rental prices as they are now. At least in Florida, we can't pay The rental prices. I am going on 70years old and just got a place after being homeless for two years. I thank God that I made it.
You are right! It's absurdly expensive to rent now. It seems like rental prices have gone up 20% in a little over a year. A mortgage is cheaper than renting in most cases.
I agree the people that say homelessness is caused by drugs are wrong. When you are struggling to pay the rent or you're commute is super long you are much more likely to turn to drugs to cope with the stress. I had to rent a room in a house full of strangers for several years because I couldn't afford the cheapest apartment. This is a horrible way to live I didn't have much storage space or privacy, I encountered crazy/messy housemates and crazy landlords. One housemate changed his motor cycle oil on the carpet, another housemate complained about everything you can imagine and another housemate always had his gun hanging out of the pocket even he was drinking. One landlord tried to ban alcohol. I rarely drink and when I drink I only have 1 or 2 beers and I clean up after myself. I had to show the landlord he was out of line so I invited all my friends for beer and a seahawks game, he called the cops but they wouldn't come and things got interesting. Another landlord wouldn't let my girlfriend visit. I like to run/hike and snowshoe if I didn't have these outdoor hobbies I probably would have turned to drugs. A big increase in pay allowed me to rent an apartment but rents are going up so fast its only a matter of time until I'm back to a rented room. I'm trying to buy a house and I can actually afford to pay list price on a small house/condo but all the decent houses/condos are bid up way beyond list price and the house search is looking more and more futile.
@@dandavid2027 I don’t have a “job” Sir. I own 24 rentals and are looking to scale up to an additional dozen before the end of the year. You just need to make more money, complaining is not the answer. I used to complain but when I had enough, things started to turn around. Now I’m on the other end of the spectrum 🤑
@@antonbriggs5680 the comment wasn't about starter homes it pointed out that the homes should be owner OCCUPIED which speculators aren't normally interested in.
@@timedj9164 keep paying that rent genius. All there money that COULD have been paying for something that would belong to you, wasted on rent to someone else with nothing to show for it. People have taken 30yr mortgages for decades to get a low fixed rate. You , however, are in the “ apple” crowd. Paying for high end electronics and renting. Yup, your a genius alright.
In silicon valley, the craziest offer I've seen is this. 100K above highest offer in cash. This was several years ago when that home was 900K. Majority of those crazy offers are foreign money.
In addition, there's the shift to work at home, the covid-caused shutdown of suppliers for home building materials. Homebuilders have been struggling to meet demand for years and covid just threw them an all new curve ball. So yes, it's homebuilders squandering a once in a lifetime demand situation.
@@TheArfdog People who want to work from home need to understand that a job that can be done remotely is a job that can be ship overseas. So be careful what you ask for.
The Joke is on them the Baby Boomers are about to start dying and flooding the market with over price houses no one can afford These guys are going to lose their shirts
@@jamesricker3997 yeah its as if their surviving spouses and children no longer need a place to live, so sell the house to go back to renting...genius...btw older people are living on average of a decade longer due to modern tech and medicine...
@@williamliversage2227 Define "basic housing"? Buying houses isn't speculation .. if I want to put my money in a 2nd or 3rd house so be it. All we need is a priority level, investors come last ... first time buyers come first
It’s not even the fact that there’s not enough houses being built.. there’s plenty being built around me.. the issue is their pricing is out of reach for so many people, so many of them sit empty.
I have no idea why we has humanity make housing so unaffordable. I would think having a roof over your head should be way more important than having the latest cool gadget.
@@marisol033 Making house, specifically land, expensive and inaccessible keeps people poor. It's easy to control poor people when they are dependent on you for shelter and food so there is a real incentive for people to control land. That's how the feudal system works. That's what our economy slowly driving towards. Make people poor and dependent on you for basic shelter and food so you can extort them for as much money as you can squeeze out of them.
@@DYLAN102001 i agree, it’s becoming more and more obvious to me that this is all by design. So it especially makes me angry when all these wealthier ppl act surprised
@@moisdawg Those wealthier people tend to be baby boomers who bought their houses back when they where cheap and investors weren't using them as investments. They're still living in the 80's, pay the employees at their businesses 80's wages and don't understand why younger generations are having a tough time accumulating a lot of wealth.
Should be illegal for people who scrimped and saved to beat our 20 somethings? This is a free country, even evolution is the survival of the fittest. No sense being angry, work longer and harder, seriously
@@dawittywats1934 agreed it's called a free market. No one wants to be controlled until they find out others have more money than they want regulations...
@Xinia Delgado not a problem with regulations. I get what your saying. The problem is people want regulations that only benefit them not thinking of others.
where I live builders are building homes, but they are focusing on high end homes exclusivly, just because they get bigger profits. I don't blame them because I would do that too.
@@chavvy9074 in my city, new constructions are at least $500,000. No average person is affording that. A couple would need at least $150,000 combined net income to afford that and to maintain it
If there is a shortage of homes and a fairly good percentage of that shortage is due to investors, then they are a problem. Neither the reporter not the expert made their points with data, which is that how many homes are we short, and how many homes are purchased by investors?
In Los Angeles at least, the problem is foreign purchasers who come into the country with money, buy the homes above asking with cash, then turn them into rentals. It shouldn't be allowed. If you are not going to live in the house.... you shouldn't be allowed to buy it.
@@hastycontemplation no, they shouldn't. But money and fear of being labeled a racist keeps the lawmakers personal interest firmly on the opposite side of those who they serve.
@@DavidEVogel No reason for that. Let them own a business and buy a house. Just don't let anyone, foreigner or not, make their business screwing over the housing market.
The market has been manipulated since 2008 they knew less homes built would eventually catch up and thus make prices skyrocket Idk who but someone is behind all this mess
Most investors took advantage of refinancing rather than buying or selling in this market. How could you not pass up a 3% interest rate on a 30 year mortgage
The title of this video is closer to what's actually wrong. More houses lay empty in America than there are homeless people. The lack of 'Supply' this guy is talking about isn't due to a lack of construction (I work in the industry, they're churning them out like mad), it's due to artificial scarcity. When a rich person, just like this video says, buys a bunch of properties and rents them out, they essentially remove them from the market. The landlords are the problem, not the lack of housing.
I’ve been saying this for months. Stop letting investors, especially foreign investors, who can outbid the real people trying to live there by over $100k above asking, buy these properties just so they can rent them back to the people who now can’t afford to buy a house. This is the driving force behind this absolutely INSANE housing market we live in
there’s no difference between the rich “American” investors and “foreign” investors, if foreign investors stop buying up all the houses, the local investors will take advantage of it and buy up all the houses
If investors keeps buying houses,so many have left their own country. This is trapping into high rental units. Next this will lead to abandoning cities, towns, counties and states. Invest with pick up all the agencies bills, including city maintenance services. Don't worry it's coming!!
I’m Mexican so I’m just gonna say it, The reason the houses aren’t being built quickly is bc trump deported all the Mexicans😭🥴 who tf did y’all think was building the houses?
@Tod Brown when a house is built for 200k on any other day but now that it's expensive to build one because people that own lumber companies are price gouging it's not just selling wholesale now to take whatever you got in your pockets not cool
There's not a housing shortage. We just have an insatiable amount of greedy people who want to "earn" their living off of others misery and despair. If you actually figured out how many households are in the US vs how many homes that are currently errected in the US there's actually an overflow not a shortage. Investors create the shortage
@David E Vogel, I was looking into being a landlord until I discovered what a scummy/heartless business it was. At least it is if you want to make money.
What you call “rich” are mostly people who have worked decade after decade and saved more than they spent. Instead of resenting them, trying doing the same. We close on our new home today, a cash offer, and our existing home next week.
@@dawittywats1934 Good for you! These idiots play the victim role. They want to play, squander and overall be STUPID. Then they whine when they have no money to pay for a house... or even to pay their rent.
I hate when they separate and categorize “black households” as always being left out cause of blah blah blah. Speak for yourself, I’m black and my family is getting richer every year. We don’t need your help or fit in your statistics🤨
You fail to realize the platform of CBS and their targeted audience, which is to the population at large. Just because your household is doing well, the Greene's across the street from you are thriving, and Brown's next door are holding their own as yours, this doesn't reflect the Black community at large across this nation. Data reflects that in cities from state to state, which comes from an unbias trusted source. CBS job is to address people at large, not individual statuses. So if you are doing well, praise God, and we the Black community is proud of you; however, our race at large isn't compared to others, and that is what they are reporting here, and their job to do.
Stats are stats, it’s nothing to be offended by. There are a lot of reasons and some of them are structural. The best thing to do is educate yourself and do the best you can do.
Because people in NYC are moving their money everywhere else, NYC and California is where the bubbles are. All that is happening is a wealth shift due to blue states and their terrible policies
We should explore more sustainable building opportunities like rammed earth structures instead of depending on lumber entirely. Tiny/small homes would be viable solution as well, but having a place to park it is near impossible. The pros for tiny developments out weight the cons at this point. People are living in their cars and pitching tents.
Finding workers to build was hard enough, the COVID and the increased cost of materials accelerated the problem. You ask anyone if they personally know someone that’s a home construction worker or carpenter, I guarantee that’s a “no”. The only people I new in home construction where illegal emigrants from Mexico and that was in 2007.
It will interesting to see how this plays out. Banks make the bulk of their money from loan interest. Enough cash buyers and they will start to feel it. Maybe there they’ll use their lobbyists to suggest laws that prevent individual and businesses from owning more than a certain number of single family homes.
Ya has nothing to do with the price of material, I am a contractor and I promise you its costing me between 100k to 200k more today than it was a year, to build the same house.
Even a young person understands supply and demand. This guy said nothing new here. The real reason for the higher housing prices are from the low interest rates. And we can thank the stimulus money for that. We have not been able to keep up with building demand for many years. It’s nothing new. They will never catch up building more homes. I feel sorry for younger people who will buy homes in 5-10 years. It will be near impossible.
Wow. His exact quote is... "the story is less about investors driving housing prices. It's more about the deep shortage of homes." @3:45. This headline is very misleading. The wealthy aren't buying single family houses. Buying rental properties and flipping houses is a very middle class thing.
People who have plenty of money and willingly buy up the limited inventory and further increase home prices are trash. They dont want families to have homes they want lifelong renters. They want us all to eventually be forced to rent and no true homeowners just businesses owning all the homes. Thats what is wrong. The government is doing nothing and these are the same people who let us down in the previous housing bubble and reaped all the benefits then as well.
All builders have to do is get creative, with all the plastics floating in the ocean right now, and I've seen them use recycled water bottles to pave a driveway, you're telling me that they can't chop up and repurpose old used plastic to make homes with? If lumber is too expensive, you use steel framing assuming it's cheaper, and fill in the sections with recycled, compacted plastic, it's probably better at insulting I bet. Just have to figure out a way to finish it so it doesn't look terrible.
The oil cartels have the system rigged to where it's more profitable and cheaper to extract the oil from the ground rather than to recycle the plastic. Steel is also getting pretty expensive.
People who need the government to hand out closing cost and creative lending have no business buying anything because they are buying into a market that is not affordable. People forget the long term commitment to home buying, repairs, just living in a home and not investing money in keeping it up makes the neighborhoods look like trash. I want to live in an area where lawns,cars,roofs,paint on the house doesn't look like in live in the ghetto or little mexico because I HAD to qualify on my own accord!!!
Complete mismatch of title and content. Questions are loaded but the expert doesn't fall for it. Bad title and anchor but a great explanation by the expert. Spot on. Supply and demand.
It's capitalism simply- builders aren't wasting their time to get land and build 1-bedroom 1-bathroom homes. "Tiny homes" (homes on wheels) was made illegal in several areas cuz they weren't paying full property taxes.
How are black incomes the lowest when black women are the most the get their educations, especially graduate degrees? I feel like this is all a setup. I know because I have my Master and 11 years in my field. I’m overqualified for every job I apply for somehow.
I don't understand the headline and comments. The speaker said the issue with entry level homes was more about cost to build than investor speculation.
@@Mockduck2020 They can be cheap, it depends on your preference. There are countless videos on RUclips that show just how cheap they can be. The housing market is not cheap
@@deafheart23 ok...go to Home Depot and order a shed. But if you live in a cold area, just skip having any plumbing. That will be relatively cheap 🤷♀️
As one who founded a startup proptech and fintech company to design, build, rent, finance and manage single family homes here in Atlanta in the price range of $69,000 (1-story, 599 sf, 3 bedrooms/2 bathrooms) and a 2-story, 980 sf, $99,900, 3 bedrooms/2 bathrooms, I could not get venture capital nor equity and money promised to invest in Black businesses by the Big banks, corporations, foundations, institutional investors, etc. The rich and powerful want to keep Americans poor and renters💯🙏🏿🏠💰
I'm buying rentals as fast as I can, credit 830 5 million net worth, I have bought 13 in the last month, with low interest rates we are making a killing
There is a shortage of housing supply, the 08 crash presented homes at a deep discount so lots of folks either bought all cash or those who borrowed have crazy low monthlies after refinancing, or have paid them off. Those homes are locked, unavailable, and not for sale, they won’t need to sell. The homes that remained have been getting bought by the most qualified buyers over the years. Inflation and a housing shortage make for a lethal combination, this problem will continue for quite some time unless builders can ramp up production.
Why do banks allow these loans?? Medium income is 62,000 not 72,000. Minimum wages is not $33 dollars an hour and nobody is getting 40 hrs per week. Banks have a responsibility because if the homeowner defaults the bank will lose and taxpayers will not bail them out Again!!
This is the most perfect time for 3D printed houses to succeed because houses are so effing expensive right now it really does make sense to buy a 3D printed house and to all the naysayers who say that's a stupid idea see what you can get for $300,000 on both sides and tell me what seems like a better option
At 3:47 the writer backpedal, removing culpability from investors and blaming builders. Who’s making the new housing bubble the “investors” that don’t mind overpaying because they are going to rent it or the builders whom are the second to last link on the housing market chain???
Someday the average house will be 1 million dollars to start or more then that. And only millionaires will be able to get one so sad what it's coming too
I don't have an issue with a seller's market. When property values increase (and it's one of the only investments that appreciate in value) it's a good market. My issue is states that have ungodly high housing prices and taxes to begin with. I looked at a house that would need at least $80k in renovations listed for over $300k, and it wasn't even 2,000 square feet. I'll keep my money until it becomes a buyer's market then get the deal of the century. Or move back down south and work remote and live like royalty lol.
@@xivinrah I grew up in Alabama and still have family there. There's higher than usual places to live, but a bigger house and lower taxes are pretty much what you get (and in most cases more land) compared to the north, even in places like Shelby County or Huntsville. I wouldn't live in Birmingham, couldn't stand it when I was growing up. But there are also places just outside the suburbs, a 15 minute drive to the store or entertainment, that have the lowest taxes and lots of land for the same price as the suburbs. It just depends where you look. Compared to up here, even the more expensive areas are cheaper than here.
@@forvalhalla7754 Im from TN and my generation has been priced out man. South is expensive now as well. Everybody and their mom is moving here and so you know what that means. Prices skyrocketed. People from TN are having to move to Alabama or South Carolina because of house prices.
@@JesusChrist2000BC I can't say I doubt that or disbelieve it. Always best to hear first hand from people that live it. I'm sure there are still some deals to be had, especially by where my family is. I just have to decide where I want to go and get moving. But it probably won't be until the market settles a bit. I'm in the title insurance business, I see it all the time. Now is definitely not the right time to buy, regardless of the interest rates. Unless you're willing to pay $50k plus over asking with contingencies on appraisals and inspections and risk buying a money pit. Or being upside down on a home when it becomes a buyer's market again.
It just seems like society is owned behind the scenes and it is like a puppet system and I honestly question if the very top parts are even human in nature
This is the reason that so many people are homeless. They can't afford the rental
prices as they are now. At least in Florida, we can't pay
The rental prices. I am going on 70years old and just got a place after being
homeless for two years. I thank God that I made it.
You are right! It's absurdly expensive to rent now. It seems like rental prices have gone up 20% in a little over a year. A mortgage is cheaper than renting in most cases.
Make more money!
I agree the people that say homelessness is caused by drugs are wrong. When you are struggling to pay the rent or you're commute is super long you are much more likely to turn to drugs to cope with the stress. I had to rent a room in a house full of strangers for several years because I couldn't afford the cheapest apartment. This is a horrible way to live I didn't have much storage space or privacy, I encountered crazy/messy housemates and crazy landlords. One housemate changed his motor cycle oil on the carpet, another housemate complained about everything you can imagine and another housemate always had his gun hanging out of the pocket even he was drinking. One landlord tried to ban alcohol. I rarely drink and when I drink I only have 1 or 2 beers and I clean up after myself. I had to show the landlord he was out of line so I invited all my friends for beer and a seahawks game, he called the cops but they wouldn't come and things got interesting. Another landlord wouldn't let my girlfriend visit. I like to run/hike and snowshoe if I didn't have these outdoor hobbies I probably would have turned to drugs. A big increase in pay allowed me to rent an apartment but rents are going up so fast its only a matter of time until I'm back to a rented room. I'm trying to buy a house and I can actually afford to pay list price on a small house/condo but all the decent houses/condos are bid up way beyond list price and the house search is looking more and more futile.
@@GeorgiaMade404 housing prices going up 13% yr over year. Is your job giving you 13% raises yr over yr?
@@dandavid2027 I don’t have a “job” Sir. I own 24 rentals and are looking to scale up to an additional dozen before the end of the year. You just need to make more money, complaining is not the answer. I used to complain but when I had enough, things started to turn around. Now I’m on the other end of the spectrum 🤑
They're wanting everyone to be renters. Specifically renting from them.
No renter
Or make the banks rich with their hyperinflationary mortgages.
We need a moratorium on investors/speculators. Priorities owner occupied buyers.
You obviously didn't watch the video. Home builders margins are crap for starter homes.
@@antonbriggs5680 the comment wasn't about starter homes it pointed out that the homes should be owner OCCUPIED which speculators aren't normally interested in.
Right! 100% agreed. But our gov is never going to let corporate landlord down...
So you want to be "first" to get in on a 30-40 year mortgage! lol.. Clearly no apple users here! THINK DIFFERENT!
@@timedj9164 keep paying that rent genius. All there money that COULD have been paying for something that would belong to you, wasted on rent to someone else with nothing to show for it. People have taken 30yr mortgages for decades to get a low fixed rate.
You , however, are in the “ apple” crowd. Paying for high end electronics and renting. Yup, your a genius alright.
I was gonna buy a condo for 160k I scheduled a visit and two days later some dude bought it cash made it a rental. Sucks
Where
In silicon valley, the craziest offer I've seen is this.
100K above highest offer in cash.
This was several years ago when that home was 900K. Majority of those crazy offers are foreign money.
Was gonna say, sound like Cali!
@@rawx485 New York and Flrida is the same.
@@pearlperlitavenegas2023 florida
Greed by the wealthiest never ending when middle class families need to purchase homes
If you do not have the money for a down payment on a house, you rent. Hasn’t that always been true?
“Not building enough new housing”
So the artificial low interest rate, rampant speculation, forbearance and foreclosure moratorium is not a problem?
In addition, there's the shift to work at home, the covid-caused shutdown of suppliers for home building materials. Homebuilders have been struggling to meet demand for years and covid just threw them an all new curve ball. So yes, it's homebuilders squandering a once in a lifetime demand situation.
@@TheArfdog People who want to work from home need to understand that a job that can be done remotely is a job that can be ship overseas. So be careful what you ask for.
@@dunggg what does that have to do with the increase in housing prices?
Did you see the new housing chart? New houses are being build, just too big and expensive.
@Coolio you mean rising prices.
If we don’t like houses being investments, just wait until water is seen as a great investment.
Air too.
Funny you mention that. Look up the richest person in China Jhong Shanshan. He owns a beverage company selling mostly bottled water.
People are already selling water for profit
The subprime "crisis" was an opportunity crowbar for deep-pocket investors to increase their property portofolio.
The Joke is on them the Baby Boomers are about to start dying and flooding the market with over price houses no one can afford
These guys are going to lose their shirts
@@jamesricker3997 yeah its as if their surviving spouses and children no longer need a place to live, so sell the house to go back to renting...genius...btw older people are living on average of a decade longer due to modern tech and medicine...
if its not a primary residence the buyer doesn't live there then TAX THE SH!T out of the purchase
Mmmm no not investors fault people are broke
@@Angelfishworld basic housing shouldnt be something speculators should be able to invest in as a commodity
Unfortunately in the US every basic need is turned into a speculative bubble due to rampant, unregulated crony capitalism.
Starve them out. Refuse to rent houses and only rent apartments if you can’t afford to own.
@@williamliversage2227 Define "basic housing"? Buying houses isn't speculation .. if I want to put my money in a 2nd or 3rd house so be it. All we need is a priority level, investors come last ... first time buyers come first
It’s not even the fact that there’s not enough houses being built.. there’s plenty being built around me.. the issue is their pricing is out of reach for so many people, so many of them sit empty.
I have no idea why we has humanity make housing so unaffordable. I would think having a roof over your head should be way more important than having the latest cool gadget.
@@marisol033 Making house, specifically land, expensive and inaccessible keeps people poor. It's easy to control poor people when they are dependent on you for shelter and food so there is a real incentive for people to control land. That's how the feudal system works. That's what our economy slowly driving towards. Make people poor and dependent on you for basic shelter and food so you can extort them for as much money as you can squeeze out of them.
@@DYLAN102001 i agree, it’s becoming more and more obvious to me that this is all by design. So it especially makes me angry when all these wealthier ppl act surprised
@@moisdawg Those wealthier people tend to be baby boomers who bought their houses back when they where cheap and investors weren't using them as investments. They're still living in the 80's, pay the employees at their businesses 80's wages and don't understand why younger generations are having a tough time accumulating a lot of wealth.
@@DYLAN102001 💯
That should be illegal
Should be illegal for people who scrimped and saved to beat our 20 somethings? This is a free country, even evolution is the survival of the fittest. No sense being angry, work longer and harder, seriously
@@dawittywats1934 agreed it's called a free market. No one wants to be controlled until they find out others have more money than they want regulations...
@Xinia Delgado not a problem with regulations. I get what your saying. The problem is people want regulations that only benefit them not thinking of others.
Can you be more vague?
@@DavidEVogel no
How do you expect builders to build. When the cost to build is to high.
Not in Washington...they building home fast. My sister bought a 2nd home in Arizona...brand new.
where I live builders are building homes, but they are focusing on high end homes exclusivly, just because they get bigger profits. I don't blame them because I would do that too.
This actually doesnt make sense cus most new construction is super expensive luxury stuff. Nobody's building regular houses.
Density would solve the problem as much of the cost is land.
@@chavvy9074 in my city, new constructions are at least $500,000. No average person is affording that. A couple would need at least $150,000 combined net income to afford that and to maintain it
Sounds like another bubble is around the corner again soon.
Also many “FOREIGN” investors buying !!
Been turned down 10 times for a home loan. I gave up.
If there is a shortage of homes and a fairly good percentage of that shortage is due to investors, then they are a problem. Neither the reporter not the expert made their points with data, which is that how many homes are we short, and how many homes are purchased by investors?
In Los Angeles at least, the problem is foreign purchasers who come into the country with money, buy the homes above asking with cash, then turn them into rentals. It shouldn't be allowed. If you are not going to live in the house.... you shouldn't be allowed to buy it.
I don't think foreigners should be allowed to buy in this way.
@@hastycontemplation no, they shouldn't. But money and fear of being labeled a racist keeps the lawmakers personal interest firmly on the opposite side of those who they serve.
@@rawx485 The lawmakers need replaced. Allowing this is like having no borders, no country.
Ban foreigners from doing business in America? Like building a medical clinic or a Day Care center?
@@DavidEVogel No reason for that. Let them own a business and buy a house. Just don't let anyone, foreigner or not, make their business screwing over the housing market.
The market has been manipulated since 2008 they knew less homes built would eventually catch up and thus make prices skyrocket Idk who but someone is behind all this mess
Sorry but I have no time for your conspiracy nonsense.
The rich getting richer 🤦🏽♀️ and the poor well you know staying poor...
Thank you Captain Obvious.
Highly doubt real investors are buying at the peak. Investors with deep pockets have plenty to wait until the crash.
Couldn't agree more. Smart money doesn't do emotional buying.
@Time Traveler let's hope we don't hit hyperinflation...that's when all the little guys drop.
They arent buying to flip it, they are buying to rent it and hold onto it for awhile
Warren Buffet said he’s sitting on $3 billion waiting for it to crash so he can buy in bulk.
Most investors took advantage of refinancing rather than buying or selling in this market. How could you not pass up a 3% interest rate on a 30 year mortgage
The title of this video is closer to what's actually wrong. More houses lay empty in America than there are homeless people. The lack of 'Supply' this guy is talking about isn't due to a lack of construction (I work in the industry, they're churning them out like mad), it's due to artificial scarcity. When a rich person, just like this video says, buys a bunch of properties and rents them out, they essentially remove them from the market. The landlords are the problem, not the lack of housing.
No!!! Flippers are the problem!
@@SIGNALFREQ I will acquiesce to both being the problem
In other words its better to be a landlord than it is to be a renter? So why are you not a landlord?
I’ve been saying this for months. Stop letting investors, especially foreign investors, who can outbid the real people trying to live there by over $100k above asking, buy these properties just so they can rent them back to the people who now can’t afford to buy a house. This is the driving force behind this absolutely INSANE housing market we live in
Interesting. Wasn’t America built by foreigners?
there’s no difference between the rich “American” investors and “foreign” investors, if foreign investors stop buying up all the houses, the local investors will take advantage of it and buy up all the houses
If investors keeps buying houses,so many have left their own country. This is trapping into high rental units. Next this will lead to abandoning cities, towns, counties and states. Invest with pick up all the agencies bills, including city maintenance services. Don't worry it's coming!!
builders have not been building enough for the last 30 years
Wow, finally a news outlet reports this obvious reality.
I’m Mexican so I’m just gonna say it,
The reason the houses aren’t being built quickly is bc trump deported all the Mexicans😭🥴 who tf did y’all think was building the houses?
Lol I like to know where he deported them to because I see plenty of them running around.
@@leslieparmer9327 your area
@@venomrx6442 ALL Over the USA I work industrial construction I see them on every job.
BS man they can't be doing this it's called price gouging
@Tod Brown when a house is built for 200k on any other day but now that it's expensive to build one because people that own lumber companies are price gouging it's not just selling wholesale now to take whatever you got in your pockets not cool
Wow, next time try English brainiac. And yes, they can. There’s no law against corporations investing in real estate.
RE is not a car, RE goes at what the market will bare, it's what an informed buyer is willing tom pay.
Its called capitalism.
There's not a housing shortage.
We just have an insatiable amount of greedy people who want to "earn" their living off of others misery and despair. If you actually figured out how many households are in the US vs how many homes that are currently errected in the US there's actually an overflow not a shortage.
Investors create the shortage
In other words its better to be a landlord than it is to be a renter? So why are you not a landlord?
@David E Vogel,
I was looking into being a landlord until I discovered what a scummy/heartless business it was. At least it is if you want to make money.
Chinese nationals driving up prices in California, Sydney, Vancouver etc etc etc
UN: You Will Own Nothing and Be Happy
Build back better
The Great Reset
We're in this together!
To defeat the fed and banksters interest rate people need to be United and help each other do go fund me 5 or 10 dollars each person.
I would also tell this to myself before I bought a house 😂
And that’s why I will never buy or rent those rich people are the problem
damn hate people for doing better than you…seems you have the issue. small mentality of hate and jealousy
What you call “rich” are mostly people who have worked decade after decade and saved more than they spent. Instead of resenting them, trying doing the same. We close on our new home today, a cash offer, and our existing home next week.
@imsohood9000 she got it just fine.
@@dawittywats1934 Good for you! These idiots play the victim role. They want to play, squander and overall be STUPID. Then they whine when they have no money to pay for a house... or even to pay their rent.
So either be homeless or take advantage of your parents/friends if they can afford it?
I hate when they separate and categorize “black households” as always being left out cause of blah blah blah. Speak for yourself, I’m black and my family is getting richer every year. We don’t need your help or fit in your statistics🤨
Agreed 👍🏽.. Why do they keep comparing Black folks!! What about the other races?
Yes I been screaming that not all black people are in prison, poor, in need of a govt handout, or on government handouts
You fail to realize the platform of CBS and their targeted audience, which is to the population at large. Just because your household is doing well, the Greene's across the street from you are thriving, and Brown's next door are holding their own as yours, this doesn't reflect the Black community at large across this nation. Data reflects that in cities from state to state, which comes from an unbias trusted source. CBS job is to address people at large, not individual statuses. So if you are doing well, praise God, and we the Black community is proud of you; however, our race at large isn't compared to others, and that is what they are reporting here, and their job to do.
Stats are stats, it’s nothing to be offended by. There are a lot of reasons and some of them are structural. The best thing to do is educate yourself and do the best you can do.
Wall St and billionaires are buying it all. Goodbye middle class.
How is this possible when there are so many empty buildings especially in NYC
I think foreign investors buy up in big cities, let them sit empty, which drives up rent.
Because people in NYC are moving their money everywhere else, NYC and California is where the bubbles are. All that is happening is a wealth shift due to blue states and their terrible policies
Outlaw investors period. Problem solved.
We should explore more sustainable building opportunities like rammed earth structures instead of depending on lumber entirely. Tiny/small homes would be viable solution as well, but having a place to park it is near impossible. The pros for tiny developments out weight the cons at this point. People are living in their cars and pitching tents.
Tiny homes are being ruined too. What you can buy a tiny home for is now 3x the cost it was 5yrs ago and the same price as in Ohio.
we should use bamboo as a building material, bamboo grows very fast and there are many types of bamboo that can grow in different climates
Finding workers to build was hard enough, the COVID and the increased cost of materials accelerated the problem.
You ask anyone if they personally know someone that’s a home construction worker or carpenter, I guarantee that’s a “no”.
The only people I new in home construction where illegal emigrants from Mexico and that was in 2007.
It will interesting to see how this plays out. Banks make the bulk of their money from loan interest. Enough cash buyers and they will start to feel it. Maybe there they’ll use their lobbyists to suggest laws that prevent individual and businesses from owning more than a certain number of single family homes.
In an average city in CA, 2 beds 1 bath sub 1000sqft goes for 675k
Wow. That is absolutely ridiculous!
Ouch!!!!
That is not the average state wide. That’s an average for LA, SF, and SD.
Absolutely ridiculous.
Here in SF Bay, most of the people buying up all the housing nowadays are the rich who came from overseas.
Interesting. Wasn’t America built by foreigners?
i also think that rich people are buying homes to rent out through Airbnb at tourist spots.
Ya has nothing to do with the price of material, I am a contractor and I promise you its costing me between 100k to 200k more today than it was a year, to build the same house.
Then what is it?
Finally some investigative news.
There is no bubble. A bubble is related to debt. And people do not owe less than what homes are worth right now.
Even a young person understands supply and demand. This guy said nothing new here. The real reason for the higher housing prices are from the low interest rates. And we can thank the stimulus money for that. We have not been able to keep up with building demand for many years. It’s nothing new. They will never catch up building more homes. I feel sorry for younger people who will buy homes in 5-10 years. It will be near impossible.
Wow. His exact quote is... "the story is less about investors driving housing prices. It's more about the deep shortage of homes." @3:45. This headline is very misleading. The wealthy aren't buying single family houses. Buying rental properties and flipping houses is a very middle class thing.
People who have plenty of money and willingly buy up the limited inventory and further increase home prices are trash. They dont want families to have homes they want lifelong renters. They want us all to eventually be forced to rent and no true homeowners just businesses owning all the homes. Thats what is wrong. The government is doing nothing and these are the same people who let us down in the previous housing bubble and reaped all the benefits then as well.
@@margaritoamargo6347 I don't disagree with your sentiment, but blaming the situation on "deep pocket" investors is disingenuous.
Lumber has tripled in price.
The problem is not inventory driving up home prices. Fed buying MBS is a direct corollary to prices.
Spot on!
Here in Phoenix investors buy about 25% of homes. So no, they obviously aren't out bidding every buyer.
The US should forbid foreign persons and entities from buying single family homes!
Interesting. Wasn’t America built by foreigners?
All builders have to do is get creative, with all the plastics floating in the ocean right now, and I've seen them use recycled water bottles to pave a driveway, you're telling me that they can't chop up and repurpose old used plastic to make homes with? If lumber is too expensive, you use steel framing assuming it's cheaper, and fill in the sections with recycled, compacted plastic, it's probably better at insulting I bet. Just have to figure out a way to finish it so it doesn't look terrible.
The oil cartels have the system rigged to where it's more profitable and cheaper to extract the oil from the ground rather than to recycle the plastic. Steel is also getting pretty expensive.
I have thought that about the ocean plastic, it should be reused.
People who need the government to hand out closing cost and creative lending have no business buying anything because they are buying into a market that is not affordable. People forget the long term commitment to home buying, repairs, just living in a home and not investing money in keeping it up makes the neighborhoods look like trash. I want to live in an area where lawns,cars,roofs,paint on the house doesn't look like in live in the ghetto or little mexico because I HAD to qualify on my own accord!!!
It is suppose to read I don't want to live......
That's weird I see a bunch of homes empty with no families in them all the time
Where?
Foreign buyers do that to park cash in real estate so their governments can’t seize it.
I'm in Pennsylvania
Time for social and legislative revolution, and ban corporate ownership of residential real estate
Maybe it's time to ban investor purchased house, at least temporarily.
Complete mismatch of title and content. Questions are loaded but the expert doesn't fall for it. Bad title and anchor but a great explanation by the expert. Spot on. Supply and demand.
@Mastodon1976 nope he is exactly right
Facts, you can tell the anchor does not know what shes talking about and is just trying to blame the rich for everything 🤦🏻
Crater Tube...can you give SPECIFIC examples of mortgage fraud...enough to causes housing prices to rise? The exact opposite would be happening.
The question is ,are big government going to stop the freight train or the private sectors? If it doesn't stop Americans will stop it and pass a law.
It's capitalism simply- builders aren't wasting their time to get land and build 1-bedroom 1-bathroom homes. "Tiny homes" (homes on wheels) was made illegal in several areas cuz they weren't paying full property taxes.
How are black incomes the lowest when black women are the most the get their educations, especially graduate degrees? I feel like this is all a setup. I know because I have my Master and 11 years in my field. I’m overqualified for every job I apply for somehow.
I will have to agree with you 100%.
I don't understand the headline and comments. The speaker said the issue with entry level homes was more about cost to build than investor speculation.
Good time to sell your home if you've been thinking about it.
Sure. But where you going to live?
@@pixel0 rent. Get a van.
@Xinia Delgado where did you move to?
Just get a tiny house and save up your money for some land.
Tiny houses are not cheap.
@@Mockduck2020 Exactly 💯
@@Mockduck2020 They can be cheap, it depends on your preference. There are countless videos on RUclips that show just how cheap they can be. The housing market is not cheap
@@deafheart23 ok...go to Home Depot and order a shed.
But if you live in a cold area, just skip having any plumbing.
That will be relatively cheap 🤷♀️
Multiple families are living together
As one who founded a startup proptech and fintech company to design, build, rent, finance and manage single family homes here in Atlanta in the price range of $69,000 (1-story, 599 sf, 3 bedrooms/2 bathrooms) and a 2-story, 980 sf, $99,900, 3 bedrooms/2 bathrooms, I could not get venture capital nor equity and money promised to invest in Black businesses by the Big banks, corporations, foundations, institutional investors, etc. The rich and powerful want to keep Americans poor and renters💯🙏🏿🏠💰
I'm buying rentals as fast as I can, credit 830 5 million net worth, I have bought 13 in the last month, with low interest rates we are making a killing
Make it a law - if you’re not going to be living in the home - you’re not eligible to buy it - done ✅
Exactly
Overall level of comments here is about the 10th grade. Readers please keep your expectations low.
Only a matter of time...these people who are buying homes at overinflated prices ..they will be upside down on those homes
resellers / investors should be identified by every state and should be sidelined to give way for true homeowners
Something tells me that you are broke. Just a hunch.
This is the lady that got checkd from that lawyer...
The corporations well own every house
Wow, I finally understand why they don't build smaller homes. This is a great report.
Who would rent someone’s house.
People do it all the time. Some people prefer to live in houses but may not currently be able to purchase one.
@@gpk1982 it’s a sucker move
If you do not have the money for a down payment on a house, you rent. Hasn’t that always been true?
The rich getting richer.... #inequality🇺🇲
Thank you Captain Obvious.
And the poor get babies.
Its not cash rich individual investors rather funds buying them up. I mean look at black rock
But black home owners get lower appraisals because they are black owned.
There is a shortage of housing supply, the 08 crash presented homes at a deep discount so lots of folks either bought all cash or those who borrowed have crazy low monthlies after refinancing, or have paid them off. Those homes are locked, unavailable, and not for sale, they won’t need to sell. The homes that remained have been getting bought by the most qualified buyers over the years. Inflation and a housing shortage make for a lethal combination, this problem will continue for quite some time unless builders can ramp up production.
@In Your Empty Skull Where are all these surplus homes located? Point them out on a map.
@Crushing Housing Losses there you go again taking things personal….
@In Your Empty Skull How many of these fake account you have? lol
Apparently no one likes to talk about inflation... this tea though
Why would anyone get ANY information from MSM (ABC, CBS, NBC, CNN, MSNBC, FOX, etc)?
Why do banks allow these loans??
Medium income is 62,000 not 72,000. Minimum wages is not $33 dollars an hour and nobody is getting 40 hrs per week. Banks have a responsibility because if the homeowner defaults the bank will lose and taxpayers will not bail them out Again!!
Yea okay, they always get bailed out. That's why they keep doing it. They don't care. Smh
This is the most perfect time for 3D printed houses to succeed because houses are so effing expensive right now it really does make sense to buy a 3D printed house and to all the naysayers who say that's a stupid idea see what you can get for $300,000 on both sides and tell me what seems like a better option
Nice pipe dream.
3d printing costs a lot of money, bamboo would make more sense, they grow very fast and can be very strong and flexible
This guy looks pretty shady. He should get a job with the main stream media.
Man government is in trouble
The government shouldn't allow investors to buy more homes. Only to first home buyers!
Overall level of comments here is about the 10th grade. Readers please keep your expectations low.
Its a bubble. These prices will come down, or wages will go up, or we will have a massive increase in homelessness
Housing market has been wild
Hope they suffer in the long run. Not allowing new home buyers get a chance to find their home.
When you say Black household, a lot didnt get the right education, or higher or post education with the right job, that would support those homes.
Who said that
At 3:47 the writer backpedal, removing culpability from investors and blaming builders. Who’s making the new housing bubble the “investors” that don’t mind overpaying because they are going to rent it or the builders whom are the second to last link on the housing market chain???
Did you see the new housing chart? New houses are being build just too big and expensive.
Someday the average house will be 1 million dollars to start or more then that. And only millionaires will be able to get one so sad what it's coming too
I don't have an issue with a seller's market. When property values increase (and it's one of the only investments that appreciate in value) it's a good market. My issue is states that have ungodly high housing prices and taxes to begin with. I looked at a house that would need at least $80k in renovations listed for over $300k, and it wasn't even 2,000 square feet. I'll keep my money until it becomes a buyer's market then get the deal of the century. Or move back down south and work remote and live like royalty lol.
The South is expensive too unless you move to Lochapocka, Alabama or Coosawatchie, South Carolina 😂😂
@@xivinrah I grew up in Alabama and still have family there. There's higher than usual places to live, but a bigger house and lower taxes are pretty much what you get (and in most cases more land) compared to the north, even in places like Shelby County or Huntsville. I wouldn't live in Birmingham, couldn't stand it when I was growing up. But there are also places just outside the suburbs, a 15 minute drive to the store or entertainment, that have the lowest taxes and lots of land for the same price as the suburbs. It just depends where you look. Compared to up here, even the more expensive areas are cheaper than here.
@@forvalhalla7754 Im from TN and my generation has been priced out man. South is expensive now as well. Everybody and their mom is moving here and so you know what that means. Prices skyrocketed. People from TN are having to move to Alabama or South Carolina because of house prices.
@@JesusChrist2000BC I can't say I doubt that or disbelieve it. Always best to hear first hand from people that live it. I'm sure there are still some deals to be had, especially by where my family is. I just have to decide where I want to go and get moving. But it probably won't be until the market settles a bit. I'm in the title insurance business, I see it all the time. Now is definitely not the right time to buy, regardless of the interest rates. Unless you're willing to pay $50k plus over asking with contingencies on appraisals and inspections and risk buying a money pit. Or being upside down on a home when it becomes a buyer's market again.
@Xinia Delgado reeeaaaalllllly? Where, for example? I'm sure every place has its pros and cons, but I'm all for the best bang for my buck!
For sure!!!
I have offered my home 🏡 for $500 thousand dollars 💸 but know one is taking my bate. Come on people I will throw in the lawnmower
It just seems like society is owned behind the scenes and it is like a puppet system and I honestly question if the very top parts are even human in nature
Well when people gain power they become greedy and tries to keep their power
Who’s surprised?!
Very informative
Bs on the tight lending standard...
Great Video!
These are all great questions
I dont think we need more house if we do. The Oxygen level will drop because the trees are getting cut down
Hush up, Greta
You mean we need less people, & you would be correct.
@@hailseitan3876 Bill Gates has entered the chat.