Also not to mention if your single and make less then 100k plus a year it's next to impossible to own a home at these prices in most areas. Unless it's in the ghetto. I'm a hour outside of Philly and crack house row homes in the slums are 150k to 200k or higher its just absurd. They have pretty much forced blue collar workers out of affording a home unless you have a two incomes . This country has become a complete disgrace
@@michaeljacobs2860it ain’t they are irresponsible. Lol. If 1 person can do it with 100k then guess how easy it is for 2. Who do you think is buying then? most of the responses on housing are broke people lying lol
Realtor from Kentucky here. We have houses in my rural area well over the purchasing ability of the local people and I’m seeing houses sitting on the market with no showings now. It hasn’t been like that but in the last 2-3 weeks it has almost completely stalled out here.
I feel so hopeless. Between these high prices, high interest rates, high HOAs, high property taxes and high homeowners insurance, I can’t afford anything. 😢
Whenever things shake out for you ... AVOID HOAs at all costs. Not only will you save money, but it will help your mental health not having to deal with Super Karen, the neighborhood tyrant.
Don't feel hopeless. Economic downturn as Mike is saying is imminent. I believe it will be catastrophic. Our home prices are going to go down like the Titanic. My opinion and I'm usually always right.
Don’t feel hopeless, take the time to study our financial history. We are currently a financially deregulated boom bust capitalist nation (as is most the world). There are nation’s effected to the extent that inflation is 125% to 200%, because their countries can’t manipulate their currency & debt the way our nation can do. The previous economy post 2008 was manipulated by the Federal Reserve as QE (abnormal low rates & buying up government debt, and for the first time in history in 2020, the Federal Reserve bought up stock market entities debt to mask the complete collapsing of financial instruments.) Think about it this way, the baby boom generation is in the process of leaving the planet, so look at those houses from that point of view. Keep listening to Michael. I’ve been through multiple boom bust cycles as an adult. Just understand, there are multiple avenues (options) to rearrange your financial picture, money (debt) is a tool, nothing more, nothing less. Look at the Federal Reserve’s created tightening as a way of resetting the economy. I was in banking & backend finance. If you can’t afford what you are committed to, change the commitments. I analyze everything from where I want to be, backwards, to where I am. What are my options to change (or stabilize) my situation. There may be a huge increase in bankruptcies, and that is the best time to declare, when finance is forced to make the consequences minimal, or they won’t have any business.🤗 Also, just downsizing your life in a different ways or even a location is always an option. Done all of that before. Now know, these are finance manipulated cycles. The lack of living wages is about finance ownership of businesses forcing the creation of consumer debt. This is what our economy is, completely (99% debt instruments), and in an unregulated (deregulated) environment, boom bust is all there is. Bet you never heard that from U.S. media & political propaganda, that is completely owned by finance.🤪 You can decide how much you personally feed the beast😈. If you don’t want to generate more income (I’ve heard one of Satan’s helpers say “let them work 3 jobs”), downsize or get someone to share the load. America used to have “boarding houses” in the Great Depression, as a way to keep the house (especially single, widowed women), and it provided a cheaper way for those even less well off, to have a roof over their heads. Don’t let the financial system beat you down, manipulate your life around their💩! There is always a way, you decide which way, let others help shoulder the load, or retrench with those who are better able to carry the load. I’ve done that too, (the 1970’s were really bad), the 1980’s weren’t great either with super high finance costs and low wages, the 1990’s were escalating financial fraud to hide financial instability, and then 100% deregulated financial fraud beginning in 1998 to stave off that collapse, finance again started collapsing with 9/11 attack again finance propped up even more, technically collapsing again in 2005, the financial system “eased” down to stem chaos to minimize shock, (finance bundled foreclosed houses and sold them to private finance entities.) You see, you have always been inside of this. We have to be eased down, because financing is deregulated fraud that transfers wealth. I’m lucky enough to have been in the industry doing the manipulation, and I’ve studied how it works, and can move in and out with that understanding. If your money tool breaks, you have to get creative. I’ve moved a lot, leveraged and de-leveraged multiple times. I just look at money (some other’s bank created debt instruments) and debt (my bank created debt instruments) as being the same thing, humans using an artificial creation, that does or does not have value based on the manipulation of civilization. That’s all it is. If you get too unstable to be housed, then you have to make big changes, they don’t have to be permanent, just expedient. Think outside the box finance created to define you. Your seeking finding angels can always find what you need, always find the way, whether or not you can see a path forward, just keep moving forward.🎯 (Never feel like your “things” own you, and you have to build your life around them, they don’t own you, (you own them or you decide not to own them), freedom is a feeling, you can achieve in a multitude of ways. My favorite house is a quarter of a Century behind me, but my favorite view is right outside my front door❣️
There is a significant hidden ( from MLS) market in popular areas. Most realtors have a long list of buyers due to the house shortage. When a seller comes to them, they tell the seller that they have multiple buyers and can close the sale quickly. The seller gets a quick, somewhat competitive, sale while the realtor gets both commissions. The listing never hits MLS.
Moving expenses are why people should minimize their possessions . It's a huge headache having lots of possessions . Insurance,theft, burglaries ,and natural unforseen catastrophes can wipe out your possessions real fast! And moving all that stuff can be a real nightmare. It can be time consuming and drain your cash . And alot of people's stuff lies around and rarely or ever gets used. If you have some potential emergency items already or need some then fine. It's okay to add. Having what is needed and what you want is fine too. As long as people don't overdo it. Minimizing can keep alot of people from overspending on things like luxury items that alot of times are vastly overpriced.
I found a way to drastically decrease the price of moving. I wanted to move my grandma’s furniture from Northern Virginia back to her house that I renovated in Southside VA. The guys charged me over $2K. The next time, I moved lots more items, including books by renting a UHaul and hiring guys on both ends to first place the furniture and books into the UHaul and once reaching Southside, VA another local crew moved the items off the UHaul into my storage house. I paid $700.00. The guys were very nice.
I just did the same in Miami. I used a Uhaul truck and hired movers through them. It all came to about 500$. And I had 2 moves in there one too a storage unit.
I've noticed Redfin, Zillow having different data for awhile and overestimating property as well. I tend to use Realtor more. I guess they are trying to keep this market propped up. I hope you and Lizzy are enjoying California. Another great video Michael, thank you.
yep but i see house prices going down envy here in NC and SC !! finally and yes rates are high I am gonna but and refi when the rates go down ..however I am going to pay off at least a quitter of the loan in a year... so not to much worried about the rate right now
We are in a RECESSION 💥. No matter what you think. Next step will be a terrible DEPRESSION 💥. Everything will be so different in a year from now. First time home buyer’s PLEASE wait. There will be amazing opportunities in the near future. Thank you Michael for sharing your thoughts and great information Blessings,Carlos ✝️🙏❤️😊🇺🇸
@krapekk you're going to get another job. Focus on Jesus because he will get you a new job. Every day every chance you get say Jesus I Trust You. Ask Him and you will get one.
Keep wishing upon your stars buddy. I’ve been hearing this narrative for a long long time. So many people said the pandemic will crash the markets. Hahaha what actually happened was the real estate market appreciated 40%. Things only happen when you least expect them just like in 2008. Is there a downturn now? YES but I would love to hear your thesis to why it will crash HARD. I can give you a whole laundry list of why it will slowdown as it has but never crash.
The rentals give you a month or two free for the first year only, then charge $25 for trash and another $10 for community power and a $50 parking spot. It's getting ridiculous
The sky is always blue in California, just like the song that says it never rains in California. I just wonder, how is it that the vegetation is so green?? Thanks for the nice video but I think that greed is why we have "shortages" and high prices including inflation. In 2019 the average income in the US was about $32K in 2023 is about $59K yet it feels like people are at a standstill. The pandemic brought out greed, example: People panic and paid any amount of money for toilet paper, then panic with the supply chain which sent all prices up, then panic with real estate where the rates were going up and people paid exorbitant amount of money.
Here in Clearwater we have the same problems with our Condo's as Miami, deferred maintenance cost. Now we need a new roof, $250K, and a lot of the older people simple don't have the money. The board is wrestling with the issue of getting a bank loan, monthly payment, or one big HOA fee.
I'm starting to see some really high-end houses in my area come up for rent at affordable prices. This only happens when the "distressed" owners are hurting and think that if they can just hang on to the property for a few years they will be able to wait-out the downturn and sell for more in the future. There were a lot of good rental deals like this after the crash in 08, but they mostly dried-up in my area around 2015 when the economy started to tick up.
High end gets killed by downturns, because even rich people don't really need McMansions +, and the number of people that have 10 milli + to drop on a pile of wood can go way down, if recession seems likely.
I'm watching some Miami area waterfront canal homes. Why buy for 10M when you can rent for 5k/mo LOLOLOL. These owners are insane. (BTW, this is a 3ksqft ranch home that was 1M in 2017).
Yes first 3 months rent free will make monthly rent of about $1500-$1600 a month.. but that is only the first year; after that, rent is back to 2100-2200 a month; very similar to a bait and switch tactic
It’s diabolical how (politicians, investors, and the rich) think if people are buying/paying rent then the issue isn’t urgent. Yet they dont see how people aren’t affording a roof over their heads. Debt will balloon to cover everyday goods as people prioritize a roof over their heads. They will say earn more money yet, switch jobs, invest in xyz and as the ones offering jobs and opportunities they are paying lackluster wages. ie Walmart, Amazon, and fast food industry being the biggest employers in America with record billion dollar PROFIT, yet their employees are on food stamps, and at the poverty line or just above it. AND THEN these same companies take government subsidies to pay their bonuses. Corporate greed is something everyone on the political spectrum should agree is detestable and should be highly opposed. It’s not like we don’t have the money to pay in the country, it’s just being siphoned from wages and worker production which has been increasing.
I would like you to do a follow-up on two northern California communities that were completly destroyed by fires about 2 years apart. Paradise CA and Berry Creek CA. Small places forgotten in the ashes.
I live in a small tourist town with lots of investment property, including a ton of new construction of “reunion” properties of 6-8 bedrooms/baths etc., that are now not flying off the shelf as they were and prices being reduced. Less so, but still beginning to occur, more single family homes and condos are spending more time on the market and being reduced in price, unheard of in the past 2 years.
wait till the airbnb's start selling because the revenues aren't meeting the carrying costs. but those are short sales, so they'll be really, really stubborn on price.
My comment is if someone owns a home and is sitting on 100’s of thousands in equity why are they not selling right now with home prices soaring than bank the profits and rent until the market crashes?? They can buy another home at bargain basement prices next year?
That would be me! I bought for 268k June 2012 put my house up for 890k last May-July thinking I’d get over a million. I dumped all “my stuff”, professionally staged, and I took off in the Tesla drove to Key West thinking I’d move to Florida. Had to come home and refurnish 0 offers in my beautiful home. I’m actually very glad because I refinanced it 2.75% February 2022 - low taxes
I just moved from Miami to Pembroke Pines. I have been watching rents like a hawk from Miami all the way to Plantation for about three months. RENTS ARE GOING DOWN. Home prices are also coming down. There are still plenty of realtors looking at comps from six months ago and creating listings for top dollar but all that’s doing is increasing the DOM. A “crash” may not happen but the trend is definitely moving downward. It’s only a matter of time before the national averages reflect.
Good to hear, lived in Brickell and Pompano but had to move away. Planning to move back at some point (Broward) but think I'll sit back a bit with everything going on with the insurance market!
corporate landlords rope you in with a less expensive 1st year, knowing full well how expensive it is to move and how much of a PITA it is to move, so you will stay a 2nd year when the discount expires AND they add a 5% increase on top.
That’s probably why if you really want to game the system, you have to live minimalisticly making it easy to move each time and take it vantage of the incentives at a new place every year if necessary
Corporate landlords aren't that significant. Plurality of those investment properties are just investor families. Even when you see a "corporation" that buys these properties, half the time or more when I check, they're just LLCs run by normal upper middle class families. Though part of why it's confusing is because a lot of these families use Property Management Companies. Those don't own the properties. They keep risk and liabilities low by just managing the properties of the actual owners. A lot more owners these days use these services because they don't want to deal with tenants anymore. Many got burned by the COVID eviction moratoriums and various other issues. So now we got more callous and less personable property management teams dealing with tenants than before.
I just got evicted from my condo last month due to some complications after I left the military. I started out paying $1000 5 years ago to $1250 3 years ago after my lease renewal. The landlord just put the place back up for rent after a few renovations and is now asking $1500 for rent. I honestly think that place is not worth that price in the neighborhood it’s in. There were 2 other condos in the same unit that have been vacant for over 6 months. I doubt someone will pay that kind of money to live in that area especially compared to the price of the rest of the condos in that complex.
I got the keys to my 2 bed, 2 bath condo today! My realtor has had them for a few days and wasn't able to get them to me earlier. My monthly payment will be $1,836 which is $236 more a month than what I'm currently paying in rent for a 3 bed, 2 1/2 bath house but at least now I own a place to call home. Only time will tell if I made the right decision to buy in these current market conditions.
Thank you so much for showing us beautiful Marin County. I was fortunate enough to live there many years ago when it was still affordable, it was a magical place and truly an embodiment of heaven on Earth. Don't know what it's like now but with those housing costs I'm guessing the vibe of the entire area has dramatically changed as well. You're hitting some of the best little towns in the area, thanks for listening. Don't forget to go up to Mount Tamalpais, too, it's truly magical and mystical and spectacularly beautiful!
I’ve only ever had real estate agents spin that, “it’s always a good time to buy” and create pressure and Fomo. I’ve bought and sold homes since 2001. I’ve never once had one look out for my best interest and I find it laughable that you’re suggesting one would be honest about data. That said, thank you for your awesome videos!
As someone who used to sell real estate, I consider myself and some of my colleagues as people with integrity. Of course, there are many terrible ones that give us all a bad name.
They been doing this in LA. But it works against you long run. In LA, they can raise your rent 5 percent a year. So when they have you pay 2k a month with two free months, next year your rent is 2100, then next year 2205. If you rent at 1664, next year your rent would be 1744, then 1829.
Builders are playing with supply of homes, they are not listed until finished and sale is completed. There are real estate that are not found in the listing. . Drive around and lookup homes for sale that are not in the NLS data.
Australia has been going on for a long time. Due to massive government infrastructure spending during the 2008 crash it didn’t really affect us. But right now rent prices apartment prices are out of control. Since 2015 rentals & homes have quadrupled in price. You can buy a trashed fixer upper in Sydney for 1-1.5 million
The only homes i can afford are outdated money pits that grandma and grandpa lived in for the last 40 years with the original wood paneling on the walls. The amount of money i would have to eventually into the home on top of the mortgage that is already going to max out my budget would make me house poor the rest of my life.
One other very important point is the fact that due to the low inventory of houses, the "average price" is somewhat screwed. Lets say in a neighborhood of 200 houses, usually you have 20 houses for sale, giving you a better average sales price than if you only have 2 houses for sale. In addition, if 4 new houses come on the market in that area, with 10% lower prices, all of a sudden, you have a 200% increase in homes for sale and a price drop. So, all it takes to get this bubble to explode, is to get a small percentage of houses on the market. You could go that far that constitutional investors could easily topple the housing market by bringing houses cheaper on the market, taking all down with it to scoop up houses on the cheap. Lets just hope that doesn't happen.
My rent for a 2+2 in Los Angeles was just raised to $3200 a month. The building is old and was built in the 70’s. I’m exhausted and feel like I’m drowning. You’re right. I’m paying $600 more than than people just moved here in 2021. I’ve been here for nearly a decade. It’s awful. I’m looking for new places now.
We’re giving it a thought. We’re going back to Miami no matter what. But who knows for how long. I really love the weather here much more than Florida.
@@mmcgahn5948yes they make all their money here and then leave. california is a boom for motivated people. when you get old and lazy you gotta go and let the new generation have their turn at wealth
Humans get pleasure hearing things they already believe! Thats why I listen to you! Come on Depression! I'm prepared like the corporations! Good bad times ahead!
Please tell us where these incentives are for rent. Because here in New England, that doesn’t hold true. IF you can find a rental that is available, we’re looking at $2500 a month starting rent.
Agreed. Saving $300/month on current rent with a shortened 6 month lease, compared to last year. In Jacksonville Florida. Will be shopping for even more sales as these huge New apartments get finished all around town. Waiting to buy, so only signing 6 months leases. 💪🏻
@@noreenn6976 Same exact beautiful resort style apartment complex. As the recession gets “delayed” I will be pricing out the new apartment complex being completed all around here. Willing to move only if I can secure a 2 months FREE rent sign up deal; to cover breaking the lease if I find a property in 2024 or 2025.
I decided to rent a brand new 1900 sqft home over buying a home. I was approved for 320k home 6 months ago and would of been about a $2600 mortgage on a home that needed a lot of work. I’m in Fresno CA and our housing prices are out of control. I signed the lease to a rental with solar, and all appliances included for $2200 a month. Buying doesn’t make sense anymore for my area. Too much of a risk with high interest rates and inflated home prices. The rental market and housing market are very disconnected from each other right now in my opinion
Even if rich people have enough money to buy 2 or 3 more rental houses when prices start falling and inventory comes on the market, it doesn't make financial sense while rents are still cheaper than purchase payments because people are tapped out. They HAVE to stick to the cheaper rental, plus, the rent price is guaranteed with no major maintenance items going to come up.
Correction: The poverty numbers doubled due to the expiration of the covid benefits to families that had kids. It cut childhood poverty in half during the pandemic. That had an expiration date. That's why th childhood poverty went up so significantly. I'm not trying to take away from your overall point, though. Thanks for the awesome videos.
The concessions game is big here in the Bay area. We have tons of empty luxury apartment buildings offering 1 to 3 months free instead of lowering these ridiculous base rents of $3000 or more for a 1 bedroom.
3 free months of $3000/mo rent over a year means your rent is $2250/mo with no free months. That’s a big difference. So it is lower, they are just lowering it in an annoying way.
@@thetapheonix definitely annoying but it is also setting the price for the whole market when they refuse to lower the base. Small landlords price adjacent to luxury listings. Also they're determining income qualification on $3000 and not $2250 so it shrinks the pool of who can come into the building.
@@saynay333 I'm a "small" landlord. The difference with me is that I own the few properties I have outright. There is no mortgage so I set my own rates which are well below whatever nonsense the big money sets theirs at. I prefer reliable tenants and they prefer lower rent so it's win-win. I also think steady money is better than big money. I've had most of my tenants renting for over 10years. In that time rent on one of them only recently went up to 1050 from 900. I had to because of prop taxes & insurance which is getting ridiculous, but it was the only increase they've ever had and it's a 3B1B house. Keeping my rent low for steady reliable income has been very very lucrative. These big time money guys are just stupid. Don't get a mortgage to rent it out, buy the property outright it's not like they are broke. They are just greedy bastrards.
Don't find and empty "foreclosure" and change the locks while recording a new mortgage assignment to xyz LLC. The don't you rent from xyz while paying for your water and electricity using the rental agreement. Don't remember to use invisible notary and title company. So many empty foreclosures that don't need to be occupied by some smart cookies. This isn't happening all over the country. Why? So many foreclosures and idiot bank attorneys.
Nothing in NYC has gone down .A studio for 1500 is in the other Boroughs. In Manhattan very small studio will cost one 2750 a month. And to qualify you need a income 40 x that. means $income has to be $114,000 a yr.
I was considering moving just outside of kc Missouri 3 years ago from PA to a more affordable state and cost of living. The 1 bedroom apartment I was looking at 3 years ago was 800 bucks I just looked up the same apartment it's now 1800 bucks for the same place like wtf
Hey Michael, I'm a student but I've been interning in Asset Management, managing big real estate Poprtfolios. I can 100% verify that what you're saying is true. Here in Europe this has been going on for a while. Typically this is being done by large Asset Managers or mid size investors to increase the price of the asset. In many markets you basically buy in for a ratio, let's say 23 times annual rent. Thus Large portfolio/ asset managers like to give these 3 months off etc. as the on-paper (often high) rent after is being used to calculate the sell price.
I've built my wealth through smart investing, giving me a solid understanding of the economy. I studied finance at FAU and earned a master's from an Ivy League institution. But, here's the thing: true success isn't just about degrees and theories. It's also about being cautious when following advice, as following the wrong people can lead to costly mistakes. It's crucial to recognize if these "prophets" have hidden agendas, like profiting from views on videos or selling sensationalized information. Moreover, if someone has been claiming the same thing for years, it's a clear indicator that they may be wrong on the mid-term outlook, and it's wise to approach their advice with skepticism.
When I was back home and drove through FL, AL, GA and TN..I saw tons of new sub divisions and new apartments being built. Tons. I think it’s odd that in my area, plenty of houses for sale but not selling. But supply is low? I think the numbers game is being fudged to make you believe it is. Also ppl move and sell their homes daily. Ppl die every day and most have a house that will go on the market. Foreclosures are going up too. I don’t believe there is a supply shortage. Just a manipulation game.
I'm moving to the St Louis area and I noticed many of these promos. First month free, first month half off, abnormally low security deposits...I've moved fairly often through apartments for the last 10 years and I've never seen so many promotional offers.
I’d hope you’d speak about buying homes when the timing is right. I think right now is terrible BUT some rents are as much as a mortgage. Given that parity and the reserves for repairs, having a refi in 5 years would put the buyer in a good position. I’d like for prices to fall but it’s hard to say where things will go.
It’s definitely seasonal but it’s also a testament to how low buyer demand is compared to earlier this year. Sellers in your area aren’t adjusting to these market conditions yet so they’re forced to cut prices.
I don’t think so. There are so many buyers sitting on the sidelines that when the Fed lowers rates next spring, there is going to be a flood of buyers that will push prices up even farther.
@@thetapheonix Higher interest rates do too. One of the factors in determining the monthly rent for a property is what the mortgage on it would be in the current environment. Thus the Fed is creating an environment that raises rents as well.
@@thetapheonixNah... there's a ton of rentals in my area that have dropped their prices and still sitting. I'm sure the owners' taxes and insurance has gone up also. It has come to the point now that people are tapped out. Rents CAN NOT go higher anymore no matter how much taxes and insurance continues to go up. Capitulation is nigh.
I live in downtown LA and have been looking for an apt for 6 months. All I’ve found is that Zillow is an absolute joke. They either purposely ignorantly allow or for complete manipulation of the market. Days on market, inventory, z-estimate, etc. Until the mla is public we don’t have a chance. What can be worse is all the open units holding the line price wise. There’s thousands of open units in dtla and almost no movement.
Would you please provide some detail about new construction of multifamily buildings, apartments? I read there is a lot of inventory coming to market. Is that correct? And where?
The incentive thing is a way to lower the rent without lowering the value of the property for Financing purposes. You can put the incentives down to marketing and advertising and promotions but when the mortgage company looks at your 100 units charging $2000 a month that’s what they are loaning the money on.
Have you seen the interview with Melanie on Wealthion yet? She talks about a lot of the unseen inventory with spec homes that home building companies are keeping hidden from the market. The shadow inventory is no joke
The statement that no one wants to sell is false. Im 44 yrs old. Everyone i know thats complaining about home prices are home owners who want to move. But they aren't specifically complaining about rates.. they are also complaining about home prices. But they are also excited about what Zillow claims their home is worth. Confused? Lol So are they. But basically.. it seems like they will sell when rates come down. As long as big investor's dont come in like they did before.. home prices will be flat through that.
People who want to sell but complain about the prices are part of the problem since they want max value for their home but expect no one else will want that either is just stupid.
Michael you're right nothing in life is permanent. Life itself is temporary. Things will change. I hope we don't have a change in your videos. I would like to see Lisi more often but I will take what I can get.
I’m in East Richmond Heights “ERH” paid $268k June 2012 - tried to sell last year & not 1 offer… ERH is an unincorporated hidden gem. Very glad tax wise I did not get a single offer. I couldn’t live in a more beautiful neighborhood for this price. I’d love to show you my house - come on by! Highland Ave/Arlington Blvd can’t miss me😅
The 2021 income numbers are distorted by the COVID 19 stimulus payments. My understanding is some families received payments based on the number of dependants. This is part of the increase in poverty rate and lower median income.
These discrepancies between MLS and Redfin or Zillow over active listings could be what they consider to be the boundaries of the geographic areas. Having said that, it’s doubtful these companies don’t have access to MLS and/ or can’t figure out how to standardize their geographic areas with MLS. There’s no excuse for these giant real estate companies to not be consistent with the MLS in their data.
The government has made it ridiculous to become a landlord. Rents are just not enough for 1) closing costs 2) interest payments 3) property taxes 4) repairs 5) federal and state income tax and then when you sell 1) agent commission, and inflation on your "profits" Get an education and get paid well. Forget rental property.
Thats what happened to me my roommate in Huntington Beach, California back in April of this year! We pay $2,900 for a 2-bed, but they gave us $1,200 off the first month's rent.
What people need to realize is if you have children, whether they're very much babies or 5 year olds to 10 year olds, you need to realize they will not be able to live in a house on their own, or most likely even an apartment you need to turn your houses into multi dwellings for their future or you will never have passed on wealth they will never have. Anything
You hit the nail on the head. Multi-generational households were common in the 1930's. No one could afford houses until after the War. Our daughter is lucky we're retired boomers and she will be ok. She knows how lucky she is. I can't believe how the new generations got screwed out of the American dream.
I disagree, my three oldest children are 18, 19 and 21. Two of them are in the Marine Corps. My 19 year old daughter just got married to her high school sweetheart who is in the Air Force. They are all financially independent mature and responsible. It can be done if they’re raised correctly.
The demographic situation kinda says otherwise. In the next 40 years we are going to have a massive boomer and x die off, freeing a lot of housing for the smaller generations.
@@robertmanley2687The newer generations got screwed because boomers own most of the property and are selling it at insane prices. The numbers back this up.
Also not to mention if your single and make less then 100k plus a year it's next to impossible to own a home at these prices in most areas. Unless it's in the ghetto. I'm a hour outside of Philly and crack house row homes in the slums are 150k to 200k or higher its just absurd. They have pretty much forced blue collar workers out of affording a home unless you have a two incomes . This country has become a complete disgrace
@@afisanaamarried. Duel might be more accurate 😂
It's impossible with two incomes making over $200k... your not alone.
@@amesasw it's depressing
@@michaeljacobs2860it ain’t they are irresponsible. Lol. If 1 person can do it with 100k then guess how easy it is for 2. Who do you think is buying then? most of the responses on housing are broke people lying lol
@@michaeljacobs2860dude follows this dude and josh fluke chance of him being broke is 100% lol
Realtor from Kentucky here. We have houses in my rural area well over the purchasing ability of the local people and I’m seeing houses sitting on the market with no showings now. It hasn’t been like that but in the last 2-3 weeks it has almost completely stalled out here.
What are the average prices?
I saw this is 2005. One month multiple offers, next, no offers. I’ve learned the RE market can change very quickly.
I feel so hopeless. Between these high prices, high interest rates, high HOAs, high property taxes and high homeowners insurance, I can’t afford anything. 😢
Whenever things shake out for you ... AVOID HOAs at all costs. Not only will you save money, but it will help your mental health not having to deal with Super Karen, the neighborhood tyrant.
Don't feel hopeless. Economic downturn as Mike is saying is imminent. I believe it will be catastrophic. Our home prices are going to go down like the Titanic. My opinion and I'm usually always right.
Im glad to be renting and those prices are starting to drop now too but not buying now
Don’t feel hopeless, take the time to study our financial history. We are currently a financially deregulated boom bust capitalist nation (as is most the world). There are nation’s effected to the extent that inflation is 125% to 200%, because their countries can’t manipulate their currency & debt the way our nation can do. The previous economy post 2008 was manipulated by the Federal Reserve as QE (abnormal low rates & buying up government debt, and for the first time in history in 2020, the Federal Reserve bought up stock market entities debt to mask the complete collapsing of financial instruments.)
Think about it this way, the baby boom generation is in the process of leaving the planet, so look at those houses from that point of view. Keep listening to Michael.
I’ve been through multiple boom bust cycles as an adult. Just understand, there are multiple avenues (options) to rearrange your financial picture, money (debt) is a tool, nothing more, nothing less. Look at the Federal Reserve’s created tightening as a way of resetting the economy. I was in banking & backend finance. If you can’t afford what you are committed to, change the commitments. I analyze everything from where I want to be, backwards, to where I am. What are my options to change (or stabilize) my situation. There may be a huge increase in bankruptcies, and that is the best time to declare, when finance is forced to make the consequences minimal, or they won’t have any business.🤗 Also, just downsizing your life in a different ways or even a location is always an option. Done all of that before.
Now know, these are finance manipulated cycles. The lack of living wages is about finance ownership of businesses forcing the creation of consumer debt. This is what our economy is, completely (99% debt instruments), and in an unregulated (deregulated) environment, boom bust is all there is. Bet you never heard that from U.S. media & political propaganda, that is completely owned by finance.🤪
You can decide how much you personally feed the beast😈. If you don’t want to generate more income (I’ve heard one of Satan’s helpers say “let them work 3 jobs”), downsize or get someone to share the load. America used to have “boarding houses” in the Great Depression, as a way to keep the house (especially single, widowed women), and it provided a cheaper way for those even less well off, to have a roof over their heads. Don’t let the financial system beat you down, manipulate your life around their💩! There is always a way, you decide which way, let others help shoulder the load, or retrench with those who are better able to carry the load.
I’ve done that too, (the 1970’s were really bad), the 1980’s weren’t great either with super high finance costs and low wages, the 1990’s were escalating financial fraud to hide financial instability, and then 100% deregulated financial fraud beginning in 1998 to stave off that collapse, finance again started collapsing with 9/11 attack again finance propped up even more, technically collapsing again in 2005, the financial system “eased” down to stem chaos to minimize shock, (finance bundled foreclosed houses and sold them to private finance entities.)
You see, you have always been inside of this. We have to be eased down, because financing is deregulated fraud that transfers wealth. I’m lucky enough to have been in the industry doing the manipulation, and I’ve studied how it works, and can move in and out with that understanding.
If your money tool breaks, you have to get creative. I’ve moved a lot, leveraged and de-leveraged multiple times. I just look at money (some other’s bank created debt instruments) and debt (my bank created debt instruments) as being the same thing, humans using an artificial creation, that does or does not have value based on the manipulation of civilization. That’s all it is.
If you get too unstable to be housed, then you have to make big changes, they don’t have to be permanent, just expedient. Think outside the box finance created to define you.
Your seeking finding angels can always find what you need, always find the way, whether or not you can see a path forward, just keep moving forward.🎯 (Never feel like your “things” own you, and you have to build your life around them, they don’t own you, (you own them or you decide not to own them), freedom is a feeling, you can achieve in a multitude of ways. My favorite house is a quarter of a Century behind me, but my favorite view is right outside my front door❣️
Rent! Its better
There is a significant hidden ( from MLS) market in popular areas. Most realtors have a long list of buyers due to the house shortage. When a seller comes to them, they tell the seller that they have multiple buyers and can close the sale quickly. The seller gets a quick, somewhat competitive, sale while the realtor gets both commissions. The listing never hits MLS.
Moving expenses are why people should minimize their possessions . It's a huge headache having lots of possessions . Insurance,theft, burglaries ,and natural unforseen catastrophes can wipe out your possessions real fast! And moving all that stuff can be a real nightmare. It can be time consuming and drain your cash . And alot of people's stuff lies around and rarely or ever gets used. If you have some potential emergency items already or need some then fine. It's okay to add. Having what is needed and what you want is fine too. As long as people don't overdo it. Minimizing can keep alot of people from overspending on things like luxury items that alot of times are vastly overpriced.
I found a way to drastically decrease the price of moving. I wanted to move my grandma’s furniture from Northern Virginia back to her house that I renovated in Southside VA. The guys charged me over $2K. The next time, I moved lots more items, including books by renting a UHaul and hiring guys on both ends to first place the furniture and books into the UHaul and once reaching Southside, VA another local crew moved the items off the UHaul into my storage house. I paid $700.00. The guys were very nice.
I just did the same in Miami. I used a Uhaul truck and hired movers through them. It all came to about 500$. And I had 2 moves in there one too a storage unit.
Super idea Thank you....
Nice!!
I did the same out of Miami, same price, best $500 I ever spent!
What a great idea.
I've noticed Redfin, Zillow having different data for awhile and overestimating property as well. I tend to use Realtor more. I guess they are trying to keep this market propped up. I hope you and Lizzy are enjoying California. Another great video Michael, thank you.
We’re having a great time. Thank you, Juliet. And you’re right, they all manipulate the numbers.
They do not report correctly & have removed price history
MLS intentionally makes it hard for competitors to 'scrape' their information, so if you use the cheaper data sources, you get what you pay for.
yep but i see house prices going down envy here in NC and SC !! finally and yes rates are high I am gonna but and refi when the rates go down ..however I am going to pay off at least a quitter of the loan in a year... so not to much worried about the rate right now
exactly
We are in a RECESSION 💥. No matter what you think.
Next step will be a terrible DEPRESSION 💥. Everything will be so different in a year from now.
First time home buyer’s PLEASE wait. There will be amazing opportunities in the near future. Thank you Michael for sharing your thoughts and great information Blessings,Carlos ✝️🙏❤️😊🇺🇸
I keep hearing that but all prices do is go up.
Well, not if you lose your job like I just did yesterday when all of us were laid off and the company closed its doors. CPA firm.
@krapekk you're going to get another job. Focus on Jesus because he will get you a new job. Every day every chance you get say Jesus I Trust You. Ask Him and you will get one.
@@krapekk I’m so sorry to hear about this. Keep God first in everything you do and everything will work. Again I’m very sorry to hear about this.
Keep wishing upon your stars buddy. I’ve been hearing this narrative for a long long time. So many people said the pandemic will crash the markets. Hahaha what actually happened was the real estate market appreciated 40%. Things only happen when you least expect them just like in 2008. Is there a downturn now? YES but I would love to hear your thesis to why it will crash HARD. I can give you a whole laundry list of why it will slowdown as it has but never crash.
The rentals give you a month or two free for the first year only, then charge $25 for trash and another $10 for community power and a $50 parking spot. It's getting ridiculous
Not to mention they raise your rent the next year because they know moving is a pain.
Yes, all those little fees that are tacked on the last few years are completely obnoxious.
Sometimes water, sewer and garbage. You get to pay it in the “rent cafe” hated that shit
@@stewartbergman1812yep!
The next thing rentals pay will be the landlords property taxes.
The sky is always blue in California, just like the song that says it never rains in California. I just wonder, how is it that the vegetation is so green?? Thanks for the nice video but I think that greed is why we have "shortages" and high prices including inflation. In 2019 the average income in the US was about $32K in 2023 is about $59K yet it feels like people are at a standstill. The pandemic brought out greed, example: People panic and paid any amount of money for toilet paper, then panic with the supply chain which sent all prices up, then panic with real estate where the rates were going up and people paid exorbitant amount of money.
Here in Clearwater we have the same problems with our Condo's as Miami, deferred maintenance cost. Now we need a new roof, $250K, and a lot of the older people simple don't have the money. The board is wrestling with the issue of getting a bank loan, monthly payment, or one big HOA fee.
Which condo in Clearwater?
I'm starting to see some really high-end houses in my area come up for rent at affordable prices. This only happens when the "distressed" owners are hurting and think that if they can just hang on to the property for a few years they will be able to wait-out the downturn and sell for more in the future. There were a lot of good rental deals like this after the crash in 08, but they mostly dried-up in my area around 2015 when the economy started to tick up.
Im seeing rent and sale price drops now
High end gets killed by downturns, because even rich people don't really need McMansions +, and the number of people that have 10 milli + to drop on a pile of wood can go way down, if recession seems likely.
I'm watching some Miami area waterfront canal homes. Why buy for 10M when you can rent for 5k/mo LOLOLOL. These owners are insane. (BTW, this is a 3ksqft ranch home that was 1M in 2017).
My rent quadrupled in five years. Never rent again.
Yes first 3 months rent free will make monthly rent of about $1500-$1600 a month.. but that is only the first year; after that, rent is back to 2100-2200 a month; very similar to a bait and switch tactic
It’s diabolical how (politicians, investors, and the rich) think if people are buying/paying rent then the issue isn’t urgent. Yet they dont see how people aren’t affording a roof over their heads. Debt will balloon to cover everyday goods as people prioritize a roof over their heads. They will say earn more money yet, switch jobs, invest in xyz and as the ones offering jobs and opportunities they are paying lackluster wages. ie Walmart, Amazon, and fast food industry being the biggest employers in America with record billion dollar PROFIT, yet their employees are on food stamps, and at the poverty line or just above it. AND THEN these same companies take government subsidies to pay their bonuses. Corporate greed is something everyone on the political spectrum should agree is detestable and should be highly opposed. It’s not like we don’t have the money to pay in the country, it’s just being siphoned from wages and worker production which has been increasing.
I would like you to do a follow-up on two northern California communities that were completly destroyed by fires about 2 years apart. Paradise CA and Berry Creek CA. Small places forgotten in the ashes.
Paradise is coming back slow but steady, people there scam the insurance companies big time
I live in a small tourist town with lots of investment property, including a ton of new construction of “reunion” properties of 6-8 bedrooms/baths etc., that are now not flying off the shelf as they were and prices being reduced. Less so, but still beginning to occur, more single family homes and condos are spending more time on the market and being reduced in price, unheard of in the past 2 years.
name ?
wait till the airbnb's start selling because the revenues aren't meeting the carrying costs. but those are short sales, so they'll be really, really stubborn on price.
My rent just went up $80 (16%).
Can't complaine over 9 year, it's only gone up $150. Have a really good landlord.
Yes, but how much is your rent?
Your rent is only $500/month?
@@schadlarry My rent here in Mexico is $400 a month.
@@schadlarry 800
My comment is if someone owns a home and is sitting on 100’s of thousands in equity why are they not selling right now with home prices soaring than bank the profits and rent until the market crashes?? They can buy another home at bargain basement prices next year?
That would be me! I bought for 268k June 2012 put my house up for 890k last May-July thinking I’d get over a million. I dumped all “my stuff”, professionally staged, and I took off in the Tesla drove to Key West thinking I’d move to Florida. Had to come home and refurnish 0 offers in my beautiful home. I’m actually very glad because I refinanced it 2.75% February 2022 - low taxes
Property taxes, plus they know you are full of it.
We can't see any of the houses in the background. How about visiting Hancock Park or Holmby Park.
I just moved from Miami to Pembroke Pines. I have been watching rents like a hawk from Miami all the way to Plantation for about three months. RENTS ARE GOING DOWN. Home prices are also coming down. There are still plenty of realtors looking at comps from six months ago and creating listings for top dollar but all that’s doing is increasing the DOM. A “crash” may not happen but the trend is definitely moving downward. It’s only a matter of time before the national averages reflect.
Good to hear, lived in Brickell and Pompano but had to move away. Planning to move back at some point (Broward) but think I'll sit back a bit with everything going on with the insurance market!
corporate landlords rope you in with a less expensive 1st year, knowing full well how expensive it is to move and how much of a PITA it is to move, so you will stay a 2nd year when the discount expires AND they add a 5% increase on top.
That’s probably why if you really want to game the system, you have to live minimalisticly making it easy to move each time and take it vantage of the incentives at a new place every year if necessary
Corporate landlords aren't that significant. Plurality of those investment properties are just investor families. Even when you see a "corporation" that buys these properties, half the time or more when I check, they're just LLCs run by normal upper middle class families.
Though part of why it's confusing is because a lot of these families use Property Management Companies. Those don't own the properties. They keep risk and liabilities low by just managing the properties of the actual owners. A lot more owners these days use these services because they don't want to deal with tenants anymore. Many got burned by the COVID eviction moratoriums and various other issues.
So now we got more callous and less personable property management teams dealing with tenants than before.
@@MichaelBordenaro Renter was a mover offered to move me $150 .I TOAD him $300 and don't Muck it Up.Perfect..😁
I just got evicted from my condo last month due to some complications after I left the military. I started out paying $1000 5 years ago to $1250 3 years ago after my lease renewal. The landlord just put the place back up for rent after a few renovations and is now asking $1500 for rent. I honestly think that place is not worth that price in the neighborhood it’s in. There were 2 other condos in the same unit that have been vacant for over 6 months. I doubt someone will pay that kind of money to live in that area especially compared to the price of the rest of the condos in that complex.
You’re right .
Greedy landlords.
I got the keys to my 2 bed, 2 bath condo today! My realtor has had them for a few days and wasn't able to get them to me earlier. My monthly payment will be $1,836 which is $236 more a month than what I'm currently paying in rent for a 3 bed, 2 1/2 bath house but at least now I own a place to call home. Only time will tell if I made the right decision to buy in these current market conditions.
Thank you so much for showing us beautiful Marin County. I was fortunate enough to live there many years ago when it was still affordable, it was a magical place and truly an embodiment of heaven on Earth. Don't know what it's like now but with those housing costs I'm guessing the vibe of the entire area has dramatically changed as well. You're hitting some of the best little towns in the area, thanks for listening. Don't forget to go up to Mount Tamalpais, too, it's truly magical and mystical and spectacularly beautiful!
I’ve only ever had real estate agents spin that, “it’s always a good time to buy” and create pressure and Fomo. I’ve bought and sold homes since 2001. I’ve never once had one look out for my best interest and I find it laughable that you’re suggesting one would be honest about data.
That said, thank you for your awesome videos!
As someone who used to sell real estate, I consider myself and some of my colleagues as people with integrity. Of course, there are many terrible ones that give us all a bad name.
yeah my experience has been that realtors only care about the commission. Hands down. They need the sales to butter their bread!
They been doing this in LA. But it works against you long run. In LA, they can raise your rent 5 percent a year. So when they have you pay 2k a month with two free months, next year your rent is 2100, then next year 2205. If you rent at 1664, next year your rent would be 1744, then 1829.
Thanks for visiting Shady Ln, Ross! I love the green scenery there. Great video as always!
Hope you and your wife are enjoying yourselves. You both look good in California 😅 continue to stay safe and watch your back.
We are Christine. Thank you so much for your kindness.
Builders are playing with supply of homes, they are not listed until finished and sale is completed. There are real estate that are not found in the listing. . Drive around and lookup homes for sale that are not in the NLS data.
Beautiful walkway: nice combination of practical and natural design.
Australia has been going on for a long time. Due to massive government infrastructure spending during the 2008 crash it didn’t really affect us. But right now rent prices apartment prices are out of control. Since 2015 rentals & homes have quadrupled in price. You can buy a trashed fixer upper in Sydney for 1-1.5 million
The only homes i can afford are outdated money pits that grandma and grandpa lived in for the last 40 years with the original wood paneling on the walls. The amount of money i would have to eventually into the home on top of the mortgage that is already going to max out my budget would make me house poor the rest of my life.
Solid wood my friend. They don’t make them like that anymore.😀
dont buy it
Everyone thinks they have to live in a newly remodeled home. What does your current place look like? prol old as heII
Buy it and take your time improving it. Nothing wrong with a little sweat equity. How do you think Gma and Gpa got there?
@@juanitavaldez1907 dont buy things with other people's money. simple as.
Lots of shadow inventory. Everywhere you look in central Florida there’s new housing construction going on.
One other very important point is the fact that due to the low inventory of houses, the "average price" is somewhat screwed. Lets say in a neighborhood of 200 houses, usually you have 20 houses for sale, giving you a better average sales price than if you only have 2 houses for sale. In addition, if 4 new houses come on the market in that area, with 10% lower prices, all of a sudden, you have a 200% increase in homes for sale and a price drop. So, all it takes to get this bubble to explode, is to get a small percentage of houses on the market.
You could go that far that constitutional investors could easily topple the housing market by bringing houses cheaper on the market, taking all down with it to scoop up houses on the cheap. Lets just hope that doesn't happen.
Airbnb failures will continue to drive down values of homes. -8% drop in median home values last 3 months alone.
My rent for a 2+2 in Los Angeles was just raised to $3200 a month. The building is old and was built in the 70’s. I’m exhausted and feel like I’m drowning. You’re right. I’m paying $600 more than than people just moved here in 2021. I’ve been here for nearly a decade. It’s awful. I’m looking for new places now.
Pretty area, but we couldn’t see very many homes.😢
Michael, are you guys considering staying in California? It seems about as expensive as Miami but without the nasty humidity?
As long as they dont plan on kids because the stuff rhey teach in ca now in 4th grade classes is wrong .other wise weather is great
California and Florida are a huge rip-off. I don't care what the weather is. They are both a rip-off.
We’re giving it a thought. We’re going back to Miami no matter what. But who knows for how long. I really love the weather here much more than Florida.
You are better off in Florida. People are leaving California for a reason.
@@mmcgahn5948yes they make all their money here and then leave. california is a boom for motivated people. when you get old and lazy you gotta go and let the new generation have their turn at wealth
Humans get pleasure hearing things they already believe! Thats why I listen to you! Come on Depression! I'm prepared like the corporations! Good bad times ahead!
I think eventually a lot of people are forced into sell bc they barely making their mortgages imo
50 million dollar home in Florida. 650k for insurance everyone will run for the exits in Florida at the same time. The party's over due to insurance.
and property taxes. the reassessments this year should be epic.
Please tell us where these incentives are for rent. Because here in New England, that doesn’t hold true. IF you can find a rental that is available, we’re looking at $2500 a month starting rent.
In Floriduh, of course.
I’ll let you know once I have some specific examples
Agreed. Saving $300/month on current rent with a shortened 6 month lease, compared to last year. In Jacksonville Florida. Will be shopping for even more sales as these huge New apartments get finished all around town. Waiting to buy, so only signing 6 months leases. 💪🏻
was the decrease in the same complex or did you have to move for the decrease?
That’s really smart, especially because I think Jacksonville will be an area where prices for sale will come down significantly
I'm from Jax and prices are coming down IMO. It's still way cheaper to rent. I do own my home however.
@@matthewbowers6178 I've noticed slight decreases in rent in central FL too, still too high though IMO
@@noreenn6976
Same exact beautiful resort style apartment complex. As the recession gets “delayed” I will be pricing out the new apartment complex being completed all around here. Willing to move only if I can secure a 2 months FREE rent sign up deal; to cover breaking the lease if I find a property in 2024 or 2025.
We’ve been seeing that a lot here in Burbank. They are offering 6 weeks free if you move in.
Rent will always go up. Period.
“If you believe this crap, that’s good news!” Had me cracking up!
😂
😆
What followed shortly after was one of the better moments. Most people can't make good arguments like that.
I decided to rent a brand new 1900 sqft home over buying a home. I was approved for 320k home 6 months ago and would of been about a $2600 mortgage on a home that needed a lot of work. I’m in Fresno CA and our housing prices are out of control. I signed the lease to a rental with solar, and all appliances included for $2200 a month. Buying doesn’t make sense anymore for my area. Too much of a risk with high interest rates and inflated home prices. The rental market and housing market are very disconnected from each other right now in my opinion
Even if rich people have enough money to buy 2 or 3 more rental houses when prices start falling and inventory comes on the market, it doesn't make financial sense while rents are still cheaper than purchase payments because people are tapped out. They HAVE to stick to the cheaper rental, plus, the rent price is guaranteed with no major maintenance items going to come up.
I know we always talk about low supply, but I think days on the market is more telling. Where I'm at days on the market is the same as 5 years ago.
Micheal, Plantation Florida please
1:47 200 Series Land Cruiser (Lexus LX570 URJ201)
Just remember what they say, "you'll own nothing and be happy "
🤔
Side note I have 2.75% 30 year…. I’m a 5 start Airbnb host & loving it 💕💫💯
❤👏👏👏
Correction: The poverty numbers doubled due to the expiration of the covid benefits to families that had kids. It cut childhood poverty in half during the pandemic. That had an expiration date. That's why th childhood poverty went up so significantly. I'm not trying to take away from your overall point, though.
Thanks for the awesome videos.
not needed, lizy is reading them all for you, we need some poolside showings !!!!
The concessions game is big here in the Bay area. We have tons of empty luxury apartment buildings offering 1 to 3 months free instead of lowering these ridiculous base rents of $3000 or more for a 1 bedroom.
3 free months of $3000/mo rent over a year means your rent is $2250/mo with no free months. That’s a big difference. So it is lower, they are just lowering it in an annoying way.
@@thetapheonix definitely annoying but it is also setting the price for the whole market when they refuse to lower the base. Small landlords price adjacent to luxury listings. Also they're determining income qualification on $3000 and not $2250 so it shrinks the pool of who can come into the building.
@@saynay333 I'm a "small" landlord. The difference with me is that I own the few properties I have outright. There is no mortgage so I set my own rates which are well below whatever nonsense the big money sets theirs at. I prefer reliable tenants and they prefer lower rent so it's win-win. I also think steady money is better than big money. I've had most of my tenants renting for over 10years. In that time rent on one of them only recently went up to 1050 from 900. I had to because of prop taxes & insurance which is getting ridiculous, but it was the only increase they've ever had and it's a 3B1B house. Keeping my rent low for steady reliable income has been very very lucrative. These big time money guys are just stupid. Don't get a mortgage to rent it out, buy the property outright it's not like they are broke. They are just greedy bastrards.
Don't find and empty "foreclosure" and change the locks while recording a new mortgage assignment to xyz LLC. The don't you rent from xyz while paying for your water and electricity using the rental agreement. Don't remember to use invisible notary and title company. So many empty foreclosures that don't need to be occupied by some smart cookies. This isn't happening all over the country. Why? So many foreclosures and idiot bank attorneys.
Nothing in NYC has gone down .A studio for 1500 is in the other Boroughs. In Manhattan very small studio will cost one 2750 a month. And to qualify you need a income 40 x that. means $income has to be $114,000 a yr.
A studio in Manhattan UES, Lex to Park were $1,500 in 1989, rent controlled could only go up a teensy amount, Soho lofts were $3-4k mo. by 1998-2000.
I would say New York City is probably immune from rent coming down too much
I was considering moving just outside of kc Missouri 3 years ago from PA to a more affordable state and cost of living. The 1 bedroom apartment I was looking at 3 years ago was 800 bucks I just looked up the same apartment it's now 1800 bucks for the same place like wtf
Try Springfield Missouri. A few hours from KC. Two bedrooms $500 nice area, close to everything. Lots of jobs.
@@rogerdodger8415 I was looking in Lee's summit and independence mo
Yeah there’s definitely areas where rent is still going up a lot
yeah in the state of Misery Springfield is nearly off the grid but affordable!@@rogerdodger8415
You should talk about rent and home prices in Phoenix. Also the economy here in Phoenix.
Hey Michael,
I'm a student but I've been interning in Asset Management, managing big real estate Poprtfolios. I can 100% verify that what you're saying is true. Here in Europe this has been going on for a while. Typically this is being done by large Asset Managers or mid size investors to increase the price of the asset. In many markets you basically buy in for a ratio, let's say 23 times annual rent. Thus Large portfolio/ asset managers like to give these 3 months off etc. as the on-paper (often high) rent after is being used to calculate the sell price.
I've built my wealth through smart investing, giving me a solid understanding of the economy. I studied finance at FAU and earned a master's from an Ivy League institution. But, here's the thing: true success isn't just about degrees and theories. It's also about being cautious when following advice, as following the wrong people can lead to costly mistakes. It's crucial to recognize if these "prophets" have hidden agendas, like profiting from views on videos or selling sensationalized information. Moreover, if someone has been claiming the same thing for years, it's a clear indicator that they may be wrong on the mid-term outlook, and it's wise to approach their advice with skepticism.
@@AssetAddict Are you implying that maybe Michael Bordenaro is wrong?
@@timothyandrewnielsen He is making far more money listening to your videos than he EVER made selling real estate. I think he is wrong on every level.
Wouldn’t that be considered fraud?
When I was back home and drove through FL, AL, GA and TN..I saw tons of new sub divisions and new apartments being built. Tons. I think it’s odd that in my area, plenty of houses for sale but not selling. But supply is low? I think the numbers game is being fudged to make you believe it is.
Also ppl move and sell their homes daily. Ppl die every day and most have a house that will go on the market. Foreclosures are going up too. I don’t believe there is a supply shortage. Just a manipulation game.
an "artificial nudge" : great adjective and noun dude! Thx for your work!
I'm moving to the St Louis area and I noticed many of these promos. First month free, first month half off, abnormally low security deposits...I've moved fairly often through apartments for the last 10 years and I've never seen so many promotional offers.
oof, st louis
@@timothyandrewnielsen what about it
I’d hope you’d speak about buying homes when the timing is right. I think right now is terrible BUT some rents are as much as a mortgage. Given that parity and the reserves for repairs, having a refi in 5 years would put the buyer in a good position. I’d like for prices to fall but it’s hard to say where things will go.
Exactly I couldn’t of said it better!
They may offer these deals to get people in , but are they offering this every year , I doubt it .
They will have no choice as supply continues to increase and the economy get worse
Absolutely beautiful neighborhood.
I’ve seen a few buildings south of the airport in Miami offering 1-2 months free. Surprised me.
Live in SE Fl
Prices still high but houses are staying longer for sale.
My friend in Austin was able to get her rent lowered by $250/m when she renewed her lease
I’m already seeing more homes hit the market and prices cut by 20-50k. I don’t know if it’s a seasonal thing but it’s happening.
It’s definitely seasonal but it’s also a testament to how low buyer demand is compared to earlier this year. Sellers in your area aren’t adjusting to these market conditions yet so they’re forced to cut prices.
Had a tenant hit the credit card to pay rent for the first time . Red flag!
Who else has been fucking with Michael daily for a least two weeks 😂 Michael is the man!
I'm not getting tired of hearing about the market but I would like to see on rents too maybe my tenants will leave but I doubt it
thought the dude in the pickup was going to accost you Man! False alarm.
Housing was already priced high before Covid. The 50% rise since then is all FOMO. Rising taxes and insurance will help bring us back in line.
I don’t think so. There are so many buyers sitting on the sidelines that when the Fed lowers rates next spring, there is going to be a flood of buyers that will push prices up even farther.
@@barnabusdoyle4930lower rates in a recession means tighter credit, unless these sideliners have cash they don't count
Higher taxes and insurance push rent higher since those costs will be paid by the renter.
@@thetapheonix Higher interest rates do too. One of the factors in determining the monthly rent for a property is what the mortgage on it would be in the current environment. Thus the Fed is creating an environment that raises rents as well.
@@thetapheonixNah... there's a ton of rentals in my area that have dropped their prices and still sitting. I'm sure the owners' taxes and insurance has gone up also. It has come to the point now that people are tapped out. Rents CAN NOT go higher anymore no matter how much taxes and insurance continues to go up. Capitulation is nigh.
Even with the concessions, people are still being evicted. The utilities and cost of living overall is killing people.
I live in downtown LA and have been looking for an apt for 6 months. All I’ve found is that Zillow is an absolute joke. They either purposely ignorantly allow or for complete manipulation of the market. Days on market, inventory, z-estimate, etc. Until the mla is public we don’t have a chance. What can be worse is all the open units holding the line price wise. There’s thousands of open units in dtla and almost no movement.
DTLA is the worst of the worst. What a horrible place to want to live.
$4k to move... that seems really high... never cost me more than $500 - $1k... and that's because I pay movers...
Depends on the sq ft, weight and mileage. My last move was $6K and that doesn’t include the cost to ship my truck. But this was a 4K mile haul.
Would you please provide some detail about new construction of multifamily buildings, apartments? I read there is a lot of inventory coming to market. Is that correct? And where?
The incentive thing is a way to lower the rent without lowering the value of the property for Financing purposes. You can put the incentives down to marketing and advertising and promotions but when the mortgage company looks at your 100 units charging $2000 a month that’s what they are loaning the money on.
Have you seen the interview with Melanie on Wealthion yet? She talks about a lot of the unseen inventory with spec homes that home building companies are keeping hidden from the market. The shadow inventory is no joke
Ross California? Where in the boondocks is that?
Wedge between San Anselmo and San Rafael
I got invitation homes to renew at the same monthly rent in Charlotte. Negotiations went from 7% to 3% to flat. They caved pretty quickly.
The statement that no one wants to sell is false. Im 44 yrs old. Everyone i know thats complaining about home prices are home owners who want to move. But they aren't specifically complaining about rates.. they are also complaining about home prices. But they are also excited about what Zillow claims their home is worth. Confused? Lol So are they. But basically.. it seems like they will sell when rates come down. As long as big investor's dont come in like they did before.. home prices will be flat through that.
People who want to sell but complain about the prices are part of the problem since they want max value for their home but expect no one else will want that either is just stupid.
Rates will remain high. Home prices will fall bigtime.
I appreciate your videos! I live in Pinellas and am looking at buying in Largo if you’re ever in the area for an update video! Thanks for all you do.
Michael you're right nothing in life is permanent. Life itself is temporary. Things will change. I hope we don't have a change in your videos. I would like to see Lisi more often but I will take what I can get.
How do you do these videos with the inserts as if you're doing them in real time as you walk? Amazing editing
hes a pro
I’m in East Richmond Heights “ERH” paid $268k June 2012 - tried to sell last year & not 1 offer… ERH is an unincorporated hidden gem. Very glad tax wise I did not get a single offer. I couldn’t live in a more beautiful neighborhood for this price. I’d love to show you my house - come on by! Highland Ave/Arlington Blvd can’t miss me😅
The 2021 income numbers are distorted by the COVID 19 stimulus payments. My understanding is some families received payments based on the number of dependants. This is part of the increase in poverty rate and lower median income.
Ross Marin county is probably one of the most expensive areas, next to Tiburon and so many beautiful places.
Yep you’re safe there.
These discrepancies between MLS and Redfin or Zillow over active listings could be what they consider to be the boundaries of the geographic areas. Having said that, it’s doubtful these companies don’t have access to MLS and/ or can’t figure out how to standardize their geographic areas with MLS. There’s no excuse for these giant real estate companies to not be consistent with the MLS in their data.
The government has made it ridiculous to become a landlord. Rents are just not enough for 1) closing costs 2) interest payments 3) property taxes 4) repairs 5) federal and state income tax and then when you sell 1) agent commission, and inflation on your "profits" Get an education and get paid well. Forget rental property.
Thats what happened to me my roommate in Huntington Beach, California back in April of this year! We pay $2,900 for a 2-bed, but they gave us $1,200 off the first month's rent.
How is the median rental price figured? $2,052 a month is all rentals including apartments with multiple bedrooms?
What people need to realize is if you have children, whether they're very much babies or 5 year olds to 10 year olds, you need to realize they will not be able to live in a house on their own, or most likely even an apartment you need to turn your houses into multi dwellings for their future or you will never have passed on wealth they will never have. Anything
You hit the nail on the head. Multi-generational households were common in the 1930's. No one could afford houses until after the War. Our daughter is lucky we're retired boomers and she will be ok. She knows how lucky she is. I can't believe how the new generations got screwed out of the American dream.
I disagree, my three oldest children are 18, 19 and 21. Two of them are in the Marine Corps. My 19 year old daughter just got married to her high school sweetheart who is in the Air Force. They are all financially independent mature and responsible. It can be done if they’re raised correctly.
The demographic situation kinda says otherwise. In the next 40 years we are going to have a massive boomer and x die off, freeing a lot of housing for the smaller generations.
@@robertmanley2687The newer generations got screwed because boomers own most of the property and are selling it at insane prices. The numbers back this up.
18,19,and 21 year olds in the marine corps get paid very little. No way they own a home in today's market at that pay rate in today's world.
The cpi actually showed that rents have gone up. I live in nyc and rents always creep up.
Which is bad news for a future rate hike. There’s consequences to artificially inflating numbers.
Your channel and ClearValue Tax's channel are my go to trusted sources on all this..Grateful for you and your wifey!
Go on a boating trip up the Delta and film the houses along the way. They have island bars where the only access is by boat
ngl, I figured something was up when the listings have been the same this whole year.