@@HereWashThis She's a professor, she's not meant to offer solutions in a youtube video. unhoused is a less disparaging way to refer to people, stop pretending she has an agenda.
@@goinginzane income is adjusted (so tge income line is lower) so what do you think would happen if you adjust the rental price line? It goes down. And if that line goes down the gap is smaller. And if gap smaller graph look better.
@@TomasIngi00 not to mention they whited out parts of the y-axis for the graph at 8:57. There is never a good reason to do that unless it paints a different picture than what you are trying to to make a point about.
Stock investment is currently better than real estate because it offers greater liquidity, allowing you to buy and sell quickly. It also requires less initial capital, making it more accessible, and you can easily diversify your portfolio to spread risk. Plus, with technology, managing stock investments has become simpler and more efficient.
I agree. Based on my personal experience working with an investment advisor, I currently have over $350k in a well-diversified portfolio that has seen exponential growth. It's not just about having money to invest in stocks; you also need to be knowledgeable, persistent, and have the strength to hold on during market fluctuations
Thanks for sharing your experience! I’ve been managing my portfolio myself, but it’s not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
Teresa L. Athas a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I just looked up her website on google and I would say she really has an impressive background in investing. I have sent her an email hope she gets back to me soon. Thanks
She failed to mention how the short term rental market is pulling what would otherwise be available long term rental units off the market, which drives long term rental prices up (ie air BNB).
She failed to mention how the short term rental market is pulling what would otherwise be available long term rental units off the market, which drives long term rental prices up (ie air BNB).
I'm glad that the housing expert recognizes how much of a crisis the housing situation is in the US. I'm a millenial and at this rate i dont think ill ever be able to afford my own place to live, forever doomed to live with my folks. once theyre gone i fear ill be on the streets, unless they leave me the house
Just be careful how they do leave you a house. There are videos on here that have more information but the best way to keep the property is to have it listed in a trust and make you the person who handles it. Depending on your state, the taxes alone could put you on the street anyway. For example, my grandma lives in an entirely different state than us and her house is going to be left to my mom upon her death. Grandma's state will tax capital gains on the house first and then, our state will tax the capital gains as well. This is a potentially bankrupting situation for my mom, who was the one to take on the bad debt in the relationship so I am not entirely sure if her name is on the house we live in or not. We are trying to convince her to change the will but she's the type of old honry that would rather leave scorched earth as she won't be around to deal with it. She barely left my aunt enough for her own burial just so she knows she wasn't forgotten and the burden doesn't fall on my cousins.
I wish the housing "expert" would have brought up zoning laws when discussing housing in LA, as that's a very specific reason for lack of housing. Also perhaps mention the NIMBY movement whenever multi-family buildings are approved. Missing those two points doesn't give me much confidence in her expertise and makes it look like she's pushing a specific narrative.
@@ChSasifras If your grandma leaves the house to your mom in her will then your mom gets a stepped-up basis. There should not be any capital gains taxes on the house that your mom or grandma's estate would owe. You should definitely talk to a lawyer and a CPA. Some states also allow a transfer on death deed that your grandma could sign now and then upon her death the house would be titled in your mom's name. There would be no taxes owed and no probate court fees on the value of the house. Your mom would have the house in her name and she would just need to pay the yearly real estate taxes like everyone does who owns property.
7 หลายเดือนก่อน +9
I am in the PRECISE SAME situation as you. Although, I am lucky only in the fact that I am a only child and I will inherit my mother's house when she buys the farm. Until then: I am typing this comment, and living in, mom's basement....and I am shockingly old (56 and NEVER been able to afford a residence of my own).
Very pleased to see gentrification addressed. As a kid, I didn't know what it meant and confused it with beautification because that's all I saw: flowers on street corners, fancier streetlights, cleaner buildings, etc, and who wouldn't want that? The idea that these things cost too much money for the original residents, and that the costs were intentional, flew right over my head.
Who wouldn't want gentrification if you can afford it, higher quality of life and lower crime seems like a great deal. Everyone wants cheap housing until it's put in their neighborhood.
@@authorizeking4027 I understand that's what gentrification is but I don't think it should be viewed as a negative societal issue considering there are benefits for those who can stay. Acting as if an area becoming more desirable for other people is a bad thing is ludicrous.
@@RobC1999 it's definitely a cultural thing. In Jamaica I'm used to seeing families in 5 bedroom houses. The parents share their bed and siblings sometimes sleep together. In America it's such a cultural norm for the parents to sleep alone after the kids are a certain age (like 4 years old). And theres an expectation that they would move out at 18. At least many years ago it was possible for an 18 year old to move out... Now not so much.
@@RobC1999There’s this 1950-60’s expectation of nuclear families, that you can get a job fresh out of high school at the local factory with nothing but a firm handshake and a suit, and make enough after a few months to put a down payment on a house and put D kids through college. That’sAmerican dream” never left. Meanwhile the value of grandparents are slowly being rediscovered, helping to raise kids. You make enough and live in the suburbs you’re basically paying a day care to play the role of a grandparent
I'm an architectural acoustical consultant. There are some issues with noise control in mass timber buildings because it's so much less dense than concrete and architects want to show the exposed wood which makes it very difficult to add noise control elements. There are a lot of people working on this but it does make noise control difficult.
@@PoorMuttski mass timber is like basically slabs made out of layers of wood running in different directions. It's isn't built with your typical joists with a plywood sub floor etc.
Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.
Consistently investing in high quality dividend paying REITs & companies over the long term is a relatively easy strategy to create generational wealth. My "boring" REITs portfolio paid me over $4,000 in dividends last month.
Time to focus on high-value plays with discounted dividend stocks! I'm forever grateful to my CFP. I now have a six-figure REIT portfolio, including stocks like AMT, SPG, and PSA. Currently, I own 606 shares of AMT, which brings in $3,800 annually in dividends.
I'm been guided by "Melissa Terri Swayne" who is widely recognised for her competence and expertise in the financial market. She has a thorough understanding of portfolio diversification and is regarded as an authority in this field.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
My dad was talking the other day about how he was so proud to have bought a house by his early 30’s (in 1999), and I’m like yeah and you were making 60k with a union job, you had a VA loan so no down payment required, and the house cost $90k. I make $50k a year (no union) and houses are at least $450k. Wages are not increasing significantly but housing costs have quintupled. I have to pay double what he paid for a 4 bedroom house to rent a 1 bedroom apartment. We need a massive overhaul of the housing system
@zdavidzz it seems like you are missing the point. Most people would jump at the chance to rent half a house for $1000 a month. That's an amazing deal in today's market. I pay more for less and I am paying the lowest rent avaliable in my area.
The truth is people of our generation will have to move overseas. During the pandemic when I worked remotely and I stayed about 6 months in Ecuador and I stayed in Cuenca which is a fairly big city there. I rent a 2 bedroom with 1,250 square feet, it had rand new appliances, dining room and a balcony with a Jacuzzi and I paid paid $ 545 per month. This was considered a upscale neighborhood too. Food also cheap, got 24 eggs for only a $ 1.95. I know Ecuador has issues in recent times but when things get better, I packing up and moving down there. America is a greedy, toxic country.
I'd rather live in an actual tree than some laminated building. Last place I toured, the porches was basically melting off the side of the house because the landlord patched it up using plywood and they used plywood for damaged portions of the basement dry wall...when there's a moisture problem
"we" aren't making those choices, my guy. I am sure that the vast majority of us WANT a dam house to call our own. It's these greedy bastards who want nothing more than what is in your wallet and the large lack of useful regulation behind a age old market.
This is a known and decided policy, boomers and gen X who have been in the housing market have a vested interest in increasing their property value, and have been voting for politicians that implement more housing regulations,this deives prices way up. So without any regard for future generations, boomera and gen x again allowed policies to screw over millenials and gen z
For a bit more nuance: A person must live in Vienna for a minimum of number of years to qualify for public housing. You can't just move there and expect the city to find you a place to live.
I think the real point is that the huge supply of public housing imposes a constraint on how much private landlords can charge: public housing is a direct competitor, and if they charge more then people can and will opt for public housing.
House = too expensive to afford. Food = too expensive to afford. Living = too expensive to afford. Really curious to see where we're at in 20 years... see you then, if we make it!
First world people with first world problems lol stop you spoiled brat. If us living in 3rd world countries with very corrupt officials are still able to survive, you definitely will in 20 years especially in the land of america. You guys really don't know how good you got it compared to us people here in SEA.
Because corporations are "people" now, which is the most insane thing ever. These non-persons can own entire housing markets and price out locals until we're all threatened with homelessness. I hate this world.
I saw a video of a city setting up very small homes until something better comes along. One unhoused gentleman pretty much said, “good enough”. Roof and heat/air conditioning. A door with a lock.
@@YordleScoutexactly. we've recently seen pilot programs that just give homeless people a motel room. not only is it an overnight solution for getting people to the next steps they need to take to improve their circumstances, it turns out to be cheaper than a lot of the roundabout ways that are failing.
@@YordleScoutSeriously? It's insanely profitable. One of those mini units in LA cost the city $830k on a lot they already owned. It should realistically cost $40k with a nice profit for the builder. Homelessness is an industry now. Tons of non profits have cropped up taking advantage.
Them all having apartments, and having the recourses (or recourse centers) needed nearby or on the property. (I.e career agents, library, etc) imo it’s the bare minimum. A lot of homeless ppl don’t know what they need to let alone how to get the resources to achieve it. The goal with having apartments and recourse centers in walking distance of each other is to help them move into better housing and transition back into society. I think tht having tiny houses is the opposite and unnecessary when we have so many houses and apartments tht are vacant around the country. There will always be ppl moving in and out of shelters but I think shelters w limits on them should help these ppl with nxt steps. These kinds of living spaces are a good way to get there.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Not a single mention of zoning laws, and how one big difference between Vienna and most of the US is that they have a lot of 5 story buildings where the first floor is shops, grocery stores, and similar things. Whereas those are illegal to build in most of the US, which is why it takes 4 years to get a new project approved in certain counties in California. I'm disappointed.
Those types of buildings are labeled as "Type 5" US, they're relatively new and use a 5 story wood frame with a concrete base floor shops, and stonkbucks and yankee candle
Yeah, Vienna expanded their housing supply by 10% to kick off their public housing program. That was 100 years ago and their population is slightly lower today.
Yep, and don’t forget about the NIMBYs who fight every time that a developer wants to build apartments or duplexes next to a single family house neighborhood because “it will drive down the value of my house “. Like, invest in mutual funds if you’re so worried.
@@JoseRodriguez-uj5gr Well if someone buys a house for $270,000, if anything they usually want to keep that value or grow. Let's say they have to move for whatever reason after a few years and the apartment drops their house value by $30,000. Well now they have to pay that mortgage AND one for their house their buying at the place they are moving, and that's assuming they actually have enough to put down a down payment.
It's sad that the value of a human life is less than profit. The solution is simple, build affordable homes, keep them affordable, reduce the cost of the overpriced existing homes, and stop allowing housing to be a traded commodity. Everyone knows the reasons why we have this problem but no one wants to fix it.
It is a sad realization indeed. It's a value that's like a dark shade of American culture. We could have something really beautiful but culturally we choose not to.
Yeah but if I put money into building affordable housing, I won’t make as much money compared to if I build a luxury mansion. And I want more money because money means I better than you
Most people do want to fix it, but no one who does has the power to do so. If the US and Canada and so forth were actually democratic, meaning by definition "ruled by the people" this would have been totally solved years ago, but all we can do is choose one of a tiny selection of politicians whose loyalty is always first and foremost to the wealthy, regardless of their party.
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Tthe US stock market had been on its longest bull rally ever makes the widespread worry and enthusiasm understandable given that we are not used to such unstable markets. As you pointed out, it wasn't tough for me to earn over $780k in the last 10 months, so there are chances if you know where to go. I hired a portfolio advisor since I was aware that I needed a solid and trusted plan to survive these trying times.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation.
The information on the Corporations owning these homes now make so much sense on why there is increased rent. My wife and I have been looking to rent a place for the last few months and every place I looked for online went through a company that owns it and rent was like $3500 for a two bedroom house. it's insane that they have allowed this to happen.
those big corporations drive up the prices. and small landlords are usually not rich, so they would also not deliberately rent out below market price. that is a luxury most cannot do. the ones who could afford to lower the prices (big corp) instead are driving them up.
I’m seeing a lot of people who are not even maintaining the property increasing the rent. Some should probably not even be lived in at this point. They are more affordable though. So I guess if you don’t mind things like mold, broken appliances, and no ability to open a a window you are lucky?
Here is the USA the things that the landlord is responsible for are the landlords responsibility. Pretty difficult to avoid mold when there are major plumbing issues the tenant was directed to duct tape until he gets around to it
@jessymanders1896 The major plumbing issues nobody mentioned and that none of other inhabitants of the building ever heard about, and those that are being duct taped for 9 months alrady, right?
I can’t understand what you are trying to say. I think the plumbing was mentioned or you wouldn’t have typed about it. It’s been years actually. Is that what you are questioning?
"One of the most rural places in Texas... El Paso city" (She does have a point though, housing prices were good here then they went up a few years ago)
I moved out of Arkansas this year, my 600 sq ft 1bed 1bath apartment started at 480 in 2019 and he was about to start charging me +650 despite no changes, upgrades, or even fixing the multiple problems the apartment had. All places to live there are reaching a minimum of 1K per month on average now.
@@pinkorganichorse I have a Tracfone smart phone that cost me about $70 to purchase at Target. A year of unlimited calls is about $150, and I spend about $40 each month on data. The camera isn't very good and I probably have less space than my peers, but it gets the job done and is affordable for me where an iPhone or fancy Android isn't. I replace my phone maybe every 3 years or so, whenever the software isnt supported and struggles. I just wanted to offer numbers to say that yeah, someone can have a phone and internet and not be able to afford housing. I hope this helps.
"Landlords are charging more and more based on upgrades they've made" I lived in a house that had not a single uncracked window, a front door that didnt close, and had a hole in the ceiling and the landlord raised my rent by $250 yearly until i was forced to move out due to affordability lol
Yeah that doesn't make any sense at all, did she mention millions of migrants are added every year? We have a housing shortage but add millions more to burst the seams.
Instead of offices converted to housing, I think they would be great schools, youth clubs, mental health clinics, etc. Same public-type interface, similar facility needs
@@patrickboldea599How about we just give up this obsession with keeping old buildings. Tear them down, build better and bigger ones that actually make sense... Those who made bad investments will actually have to pay for it instead of passing the bag...
@@chronometer9931 in some cases, it is actually "easier" (financially, technically, etc.) to tear down old buildings and build anew, but it is not something you can say for all of them. sometimes the demolition itself is not doable or would be too expensive depending on the area, type of buildings, neighbouring buildings and other factors.
I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .
I agree, It's not just the prices, but also the increasing interest rates that are making it more difficult for people to afford homes. With a good FA you can make up your portfolio.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
I really hoped to hear something about restrictive zoning laws, and Americans' obsession with single family homes. We need more apartments and condos, and need to stop the bipartisan NIMBY issue. Existing housing owners (people and corporations) are interested in restricting supply because it helps their "asset" (their housing investment) grow.
For some odd reason, a continent tagged by americans ( as far as i know ) as No-Skyscraper Land has way less (though still a ton and a half ) housing problems. And, for some reason, that continent tags USA as absolutely no flats land cause god only knows why. I think I'll leave this in american hands... though considering how dumb we are with "free" education, i don't think they'll realize what is the solution i meant.
@@willis936 I really think equity is part of the problem. When a house becomes a financial instrument that only increases in value, then the problems we are having right now are inevitable. If I can buy a house, do nothing with it, and flip it for double the price in a few years, why wouldn't I just do that every day? And lets be clear, the reason housing prices go up, is because housing prices go up. If one house in a neighborhood increases in value, then the next time a house in the neighborhood sells, the seller can ask for that same inflated price.
My parents bought a house in 1996. They were 28 and 23. I was three years old. We have lived in this house ever since, in a house far too small for three fully-grown adults. We can’t afford to leave.
@@Uriah625yes its corporate greed in a capitalist economy, the communist/socialist comment is a guy who thinks anything bad/"i dont like it"= socialist
As someone who's lived homeless; I would rather live in an imperfectly configured office space than to not have these spaces used because they need to meet such specific code requirements. I think most would choose a roof over their heads than a bedroom opening window. But that's just my perspective.
The thing is though, some of that code is for your own protection. Having bedroom windows that open is because of fire safety. And if something were to happen in one of those buildings and hundreds of people die bc the building wasn’t configured for living, it wouldn’t be good
As someone who was also homeless for 3 years: I really don't think you want hundreds of people living in a high rise building without sufficient plumbing for toilets and bathing, or without appropriate fire safety measures.
@@ValkyrieTiara I agree; in other countries there have been horrific fires with mass deaths because of inadequate fire escape routes. (happened in South Africa las t year in one of the many "hijacked" buildings where a gang of criminals took over an abandoned building and rented it out to desperate people)
My parents BUILT a 1300 sf house on 8 acres with a well for $15k when my Dad made 11K + some overtime if he wanted it. My mother made 2k. Last time that house sold it went for 700k. It's been added on to over the years, but it's not a mansion. Ya, things were way, way more affordable in the early 60s.
Assuming 1964. The price of gold was 35.35 per ozt. $11,000 was 311.17 ozt of gold. Spot gold today is 2292, so youre dad made todays equivilent of $713,201.64. Your mom made the equivilent of $129,658. We have a dollar problem that cant be fixed until we back by gold again, and bring back production.
and then you had a whole segment of america who were redlined out of being able to buy.... Imagine that set back for their kids later.... no appreciation cause government told them no..... Layers
@@umoramayori And that happened when the USD is still the reserve currency. Inflation is worse in many other areas and wishing for no inflation or deflation is not a pure blessing either since it means your economy is stagnant or declining like what we see with Japan. I think the issue is more worrisome to American especially younger ones since we haven't seen crap like this in the country with high inflation and rates since Jimmy Carter and it was arguably worse.
I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who were forced to witness the 2008 financial crisis could expect to generate a large wage.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that help
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Legislators also heavily regulate new constructions to the point where building affordable housing isn’t viable. Zoning restrictions also related to this. Boomers kicked the ladder down after they got what they needed.
I think that legislation is mixed. It can be how you think it is. But also, they are making sure that we have safe housing, and not have house built like the 1940's. That is feasible in our time without the costs rising in such a percentage. (efficiencies are at the point where nice houses for everyone could be affordable)
They don't expect people to do anything but spend. They want us all to have wages low enough to be able to spend on junk while not quite enough to invest and/or afford homes.
They don't expect you to afford anything. They expect you to die. There are two economies, and they are becoming increasingly independent. They won't need us for much longer. It's best to do something about it before then.
I believe value growth investing is the most effective approach, combining growth potential with value principles. By evaluating growth stocks like a value investor and comparing them to peers, investors can find opportunities. Small-cap growth value investors can thrive, but it's essential to prioritize underlying value and avoid overpaying. The goal is to buy great companies at a fair price, not mediocre ones at a discount.
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
Navigating the housing market alone can be treacherous. I learned this the hard way, losing significant value in my real estate investments due to poor property selection and timing. However, about nineteen months ago, I sought the expertise of a professional financial advisor specializing in real estate. Since then, my initial investment of $190,000 has generated close to $2 million in returns. This experience has convinced me that when it comes to investing in housing, the value of professional guidance cannot be overstated.
The approach appears simple. I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging and I could really use some guide, but are they really that effective though?
Finding financial advisors like Rebecca Noblett Roberts who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
1:50 Kate did a great job of answering this question and going straight to the facts/numbers. I commend Wired for picking knowledgeable experts on various topics. I live in TX where rent prices have gradually been increasing, but the Northeast and West Coast folks likely have it worse.
That first graph is complete BS, they use nominal rent figures but inflation adjusted income figures. Any actual expert on housing or economics would have immediately recognized this. So this person is an ignorant hack spreading misinformation.
Unbelievable that there was no mention of NIMBYism and no mention of strict zoning laws, and why mention rent control?? It’s true that this is a supply issue, rent control does not increase supply
Exactly correct! The easy answer is blaming everything on greed. That is nonsense. California has the highest number of homeless in the US. If this was all due to greed, does this mean that californians are the greediest americans!?
They could make money investing in increasing supply, but I guess keeping people paying rent forever is better for them so they do that even though worse for society and all working class people
Blackrock isn't much different - "investing in trusts buying up real estate and rentals" is like saying, "I'M not buying a house, my dad is buying the house for ME."
6:20 There's seems to be two types of gentrification, or two definitions of investment in a neighborhood both called "gentrification." One is where old residents are somehow "forced out" by new residents, like rent hikes or shutting down and refusing to renew leases as the building is sold or developed into higher-class properties. The other is when new investment occurs in a desirable neighborhood that doesn't force out the existing residents. Like converting unused lots or old vacant buildings.
theres only one type of gentrification - you pretty much have it in the first bit but add investment. The second one you're talking about is called infill. Cities want infill and a light touch of gentrification - to keep new investment coming in while at the same time keeping rents about the same for the majority of units
This video did not get the traction it deserves in the algorithm - she is fantastic, and 100% right. As someone who would LIKE to own a house someday, I'm coming to terms with the fact that it'll likely never happen.
Why is every issue on housing ignoring zoning laws, increased land value (yes you need to buy land to build a house i had to repeat this to many ppl) lack of incentive for rentals and condo construction, property taxes for building houses (increases costs of building houses), ppl building much larger houses compared to the past (house size has increased by 100s of sqft) and the lower supply of housing along aka lack of housing being built compared to the past. Many cities prioritize single family homes rather than apartments and condos on land that is already scarce and or expensive. The FRED database shows alot of these these stats.
Whatever. The local village blocked new 8 family apartments because the land is zoned industrial. As if heavy industry by the river side (that needs to dump chemicals) is coming back any time soon.
The single family homes all being built are also huge now. Nothing is built small or modest which is another major issue with the supply. Everything small is in such demand while being really old. This wasn't the case back in the 60s-80s where houses were much smaller and in mass.
@@silentstorm5439 yep. I tried to explain this to many ppl and just got called a boot licker for pointing out these things. Atp it just feels like ppl dont want solutions and just want to be in an echo chamber.
It's important to make the distinction between gentrification and displacement because while an old building is knocked for the hipster cube, it may just be affordable housing. Remember gentrification happens to a place, displacement happens to people
As society progresses, the proportion of production value that is distributed to both labor and capital decreases, as land takes an ever greater share. We need to socialize land values instead of a portion of labor and capital like we do now through income taxes. Land taxes! Georgism is the only way.
Government printing money, off shore money being laundered through our real estate and more immigrants than housing starts caused inflation. What is "corporate greed" and how did it cause inflation? And who did you vote for 8:05 ?
What is greed? When you sell your car, do you choose a price designed to make it affordable to whomever wants it? Or do you charge the highest amount you think you can get? Does this make you wicked and greedy? Read Economics in One Lesson by Henry Hazlitt. Audiobook free on TH-cam. Remember, that you and the people you like believe the same thing does not mean you are right. Educate yourself.
Can we address that the main factor affecting affordability is the lack of housing supply? We've had massive influx to desirable cities and states, but everyone's grandma goes to city hall to block any new housing because "neighborhood character" or some nonsense.
very good point. most young people that are looking for housing don't get involved in their local city politics, so they aren't present at those meetings or events that occur. it's all the old biddies that don't want their "charming" neighborhood to be updated or have more people because "something-something safety."
The first question hit so hard, I always see "luxury" housing going up where I live. It's often worse than the lower cost apartments in my area built a long time ago but the rent is way higher
She mentions supply issues, but goes out of her way to not draw a line to the biggest issue in supply, which is regulations that make building difficult. She points out Vienna for its enormous public housing initiative, but not Japan where costs have been kept low just by allowing people to build.
Also though their houses are not built to remain up for decades. They’re depreciating assets (which isn’t a bad thing honestly) and they worry a lot about the ability for these homes to withstand natural events. That’s the biggest issue. Those homes gotta contend with and people prefer the security of homes that are modern. Honestly, it makes a ton of sense to get one of these older Japanese homes, renovate it, and have a nice place to stay in a great country.
You're entirely ignoring that Japans houses are not meant to last more than 30 years. Full stop. They intend/trentd towards totally tearing down houses (especially outside of the countryside) every 30~ years on account of new fire safety standards and earthequake prevention tech for the houses, which are often cheaper to do in a full rebuild as opposed to a renovation. But also housing costs are still bad in Japan *outside of the Rural areas*; Its expressly stated as a reason for why, in 2023, Japans birth rate and marriage rates are at record all time historic bad lows.
Got to love the explanation that a mismatch between prices and wages is the result of some magical force that can't be explained. It's because of the systems /social organization that we all accept. Prices go up because people choose to raise them, wages stay stagnant because people chose to not raise them. No one thinks there are other options. We could choose to change the rules of the society and systems we created.
I have recently been loving all the Wired Tech Support videos and have been re-watching videos produced years ago, and honestly this was the most depressing one yet 😢 Really appreciated all the knowledge though, thank you!
Austria. Social Housings are really clean and well maintained (unlike France where social housing is a sinkhole), very low rent. As rent is really cheap, you can save more and can buy a house in Austria (probably not Vienna) more easily. Beside getting 14 salaries a year.
It depends what you mean. Most European countries have pretty good public housing or subsidies to make housing affordable to renters. But their ownership rates are extremely low compared to the US. So...do you want affordable rental housing or affordable homes you can purchase? I would argue that no one is getting it right because no one has both affordable rentals and for-sale homes. Even counties like Canada, Germany, definitely the UK are all having c=housing crises of their own. Cold comfort, but the whole world is going through it not just us in the US.
Japan. What Vienna did is impressive but their job was made easier by the lack of population growth. In Tokyo alone, in some years they’ve built more housing than the entire country of England does in a year. (With only a quarter of the population.)
@@stitch0714”Housing” in Japan sometimes amounts to fifty cage-like bedrooms in shared apartments. You should look this up. Thousands and thousands of people in Japan living inside 100 square feet.
And not just zoning, there's also parking requirements and other regulations that make it illegal to build housing in places people want to live! I don't see how that couldn't be the main factor in making housing expensive
yes, she rambles about how the housing supply is so low, but gives no explanation for WHY. a totally unproductive and unserious explanation of the housing situation. any discussion of housing supply needs to focus on zoning and nimbyism as the reasons for the lack of supply
+ she made multiple statements that are just not backed up by academic literature. “Building luxury housing drives up costs for everyone”. I mean what??? Isn’t she a professor? This has been studied and measured countless times. Not to mention her rent vs income graphs are completely wrong as well
To be fair, she did address this, indirectly. When a post asked, "where are they doing this right?" (1254-13:50) She highlighted Vienna. She pointed out the city is dense. That's the opposite of single-family-house - suburbia. She also pointed to the ownership: ~60% public housing. Maybe if she elaborated on that for another minute, she would have hit the zoning difference and related costs.
🌹I was once homeless, got into drug's went to prison, I'm glad I made a productive decision that has changed financial status forever and making $170,000 in just 2months in forex bought my first house last week , God is absolutely done more than enough
I started pretty low investing in forex though with $2000 thereabouts with the aid of an investment enthusiasts(Alvarez Harry Flectcher)The returns came massive. My son is very happy , telling me of new friends he's meeting
Wow 😲I know this Man mentioned here . Alvarez Harry is really good with and on his job. He's helped a couple of families and individuals' finances, I'm huge beneficiary of his platform too
We need land value taxes. The private capture of the raise in value of land is the problem. Henrey George figured this out in the late 1870's. Georgism is the only way!
Depends on where you want live. If you can't find any house affordable, then move. Sorry if that seems cold since you have family and friends, but you have to do what's best for you.
@@millerrepin4452 Or we can tell the NIMBYs to stuff it and build without their input. Sorry if that seems cold but you have to do what's best for you.
I feel so lucky to be an 'elder' millennial. We bought our first house in 2013 for 175k, 2 bedroom 1,100 sqf. We sold it in 2018 for around 250k and bought a 350k house which is now worth 500k+. (both new construction) We will be here forever now though since everything else is so expensive now.
SO glad I left SoCal and moved to somewhere that had decent house prices and the cost of living was/is decent. SoCal was ridiculous. Houses that should be condemned were selling for hundreds of thousands of dollars. New condos were going for $500k.
I live in Buffalo and there's a decent amount of development the issues is that it's all rows of townhouses or buildings of lofts that sell for $300k and the majority of the area can't afford that.
I grew up in O.P. My family sold their house for 375k in 2020 (before the Quarantine) after buying it for 220k in 2007. I think the house is more than what it sold for now…
Regarding the redlining topic, I am a VP who works for a CRA regulatory department for one of the largest financial firms in the world. The Community Reinvestment Act (CRA) of 1977 was enacted to combat redlining by encouraging banks and financial institutions to meet the credit needs of all segments of the communities they serve, especially in low- and moderate-income neighborhoods. The CRA holds banks accountable for providing fair access to loans and services in these areas, requiring them to demonstrate efforts to reinvest in underserved communities through mortgages, small business loans, and community development initiatives. While the CRA act does not set strict quotas, it evaluates banks' lending patterns and can influence their ability to expand, merge, or open new branches if they do not meet CRA requirements. The CRA applies to all FDIC-insured depository institutions, including national banks, state-chartered banks, and savings associations.
re: Gentrification: No, not all bad. Detroit's biggest issue is that it's a city that was built for 2 million people and it now has under 700,000 residents. That's more infrastructure than can possibly be paid for by the residents, and it's why the city went bankrupt (no, not Kwame, not unions, it simply became unsustainable). The gentrification in downtown Detroit and in areas nearby like Corktown and Brush Park has doubled the tax base since 2017. This will put less pressure on property taxes and allow for even more investment in jobs. And there are different levels of gentrification. The mixed used developments in Detroit right now are affordable to most working families of color, and most of the builders are including the affordable housing percentage for the tax break. It's a win for the city. Hopefully, this continues as the urban prairie gets transformed into mixed use "missing middle" that we desperately need.
@@spootieho It's annoying how "anti-gentrification" tends to be one of those hard line stances some people firmly take even if logic (sometimes their own logic) contradicts the "always bad" narrative. Like all things, gentrification can be good or bad depending on how it's applied. Heck it can even be deemed necessary at times.
A lot of countries have put a lot of limits on airbnbs and limited max rent pricing and that have helped a lot, but many countries still wont put them in place because they dont want to upset the rich people/companies owning them in the first place
The vacancy rate note was shocking. Things are bad in Canada right now... I live in a small city on the east coast and we have a vacancy rate of 1%... no rent control
I’m the parent. My wife and I bought a condo south of Seattle in 1997 for $79,995.00. We put down 3K as we qualified for a first time homebuyer down payment. Since then with rolling that purchase 2 more times over the past 25 years, that initial 3K down payment is now about 410K in equity.
Van life my brothers! When I was young Chris Farley had a whole skit about living in a van down by the river, and it was an obviously unacceptable situation. Today, we are so enamored with capitalism that we glamorize living in vans rather than admit things aren’t working.
@@rundown132over the road trucking. You live in a 5x8 semi year round. Forget owning more than a few backpacks worth of stuff in the truck - everything else in storage
I wouldn’t mind the travel life as much if public transit was better and we had a higher frequency of hostels (with lockers big enough for 40L backpacks.) Traveling in Japan prior to 2020, my average hostel price per night was $30/day, which was cheaper than the average rent in my area then and now. Europe depends but it was still more affordable than most hotels in the US even with the currency exchange being higher.
We underestimate how valuable urban planners, designers, architects, etc are. The study of settlement patters and development is a huge aspect of the discipline which really makes you think bout the world in an entirely new way. I truly think you have to be very civically minded to effectively do your job.
13:15 that pie chart with shades of blue that look really similar made me laugh. After the camera zooms back, it's pretty hard to tell a couple of those apart lol
Wow, listening to this eloquent expert speak about the housing crisis/emergency and who's getting housing right, it's almost like access to housing shouldn't be subject to "financialization" and should be treated as a human right.
I've lived in historically black (redlined) neighborhoods at least four times in my life, and can see the appeal of them. First of all, since they're older neighborhoods, they're always on a public transportation line. They're also much more walkable than almost anywhere else in the city. And finally, I think it's just easier to talk to and meet people in them. You just go downstairs and talk to people. Do be sure to invest in a stout bicycle lock, although I've never had a bike stolen I have had a motorcycle stolen. As for gentrification being bad, I dunno. Do you really want to pay $1500/month for rent or do you want to pay $350 for the same type of place? Or $500 for a full house? And I make my money elsewhere, and spend it (mostly) locally. That's gotta be good for sales and local taxes. Although I now live in a highly white suburb (not my choice), I do prefer urban life. I find suburban people to be often really scared of, well, everything. It's an insidious form of paranoia that infects how people think, while ignoring the real dangers such as traffic wrecks, obesity, and social isolation.
Love how the answer for most of the questions is: because of greed
Yeah, super depressing, but I love how straightforward and honest she was.
Becuse of capitalism
you really think that landlords are greedier in expensive cities like New York than in cheap ones?
@@NostalgiNorden but the most "socialist" cities in the US (basically, Blue America) are much more costly than purple/red cities in the Sunbelt
@@michaellewyn4099yes, because they know that that city is more desirable and so can easily afford nickle and dime more and more
I came in here thinking they were going to blame people for not saving money, but she's sptting facts. I love this person.
She used the term “unhoused.” Trust me, she’s not someone offering any viable solutions
@@HereWashThis care to elaborate on that?
@@ConsecDesign you know what they mean dont face
Shoulda bought when you were 10 ya dummy! /s
@@HereWashThis She's a professor, she's not meant to offer solutions in a youtube video.
unhoused is a less disparaging way to refer to people, stop pretending she has an agenda.
The gap in the graph is insane
It's unfortunately not correct; income in the graph has been adjusted for inflation but not rent prices.
@@TomasIngi00 so the gap is even worse than shown? 🙃
@@goinginzane no
@@goinginzane income is adjusted (so tge income line is lower) so what do you think would happen if you adjust the rental price line? It goes down. And if that line goes down the gap is smaller. And if gap smaller graph look better.
@@TomasIngi00 not to mention they whited out parts of the y-axis for the graph at 8:57. There is never a good reason to do that unless it paints a different picture than what you are trying to to make a point about.
Stock investment is currently better than real estate because it offers greater liquidity, allowing you to buy and sell quickly. It also requires less initial capital, making it more accessible, and you can easily diversify your portfolio to spread risk. Plus, with technology, managing stock investments has become simpler and more efficient.
The importance of mitigating risks might be why many investors are turning to advisors for guidance.
I agree. Based on my personal experience working with an investment advisor, I currently have over $350k in a well-diversified portfolio that has seen exponential growth. It's not just about having money to invest in stocks; you also need to be knowledgeable, persistent, and have the strength to hold on during market fluctuations
Thanks for sharing your experience! I’ve been managing my portfolio myself, but it’s not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
Teresa L. Athas a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I just looked up her website on google and I would say she really has an impressive background in investing. I have sent her an email hope she gets back to me soon. Thanks
I took her real estate class in university! Excellent professor👏
She failed to mention how the short term rental market is pulling what would otherwise be available long term rental units off the market, which drives long term rental prices up (ie air BNB).
She failed to mention how the short term rental market is pulling what would otherwise be available long term rental units off the market, which drives long term rental prices up (ie air BNB).
Obviously not if you had to watch this garbage
Yeah, these are all big questions and she gave zero-BS answers.
Should’ve taken an Econ class
I'm glad that the housing expert recognizes how much of a crisis the housing situation is in the US. I'm a millenial and at this rate i dont think ill ever be able to afford my own place to live, forever doomed to live with my folks. once theyre gone i fear ill be on the streets, unless they leave me the house
Just be careful how they do leave you a house. There are videos on here that have more information but the best way to keep the property is to have it listed in a trust and make you the person who handles it. Depending on your state, the taxes alone could put you on the street anyway.
For example, my grandma lives in an entirely different state than us and her house is going to be left to my mom upon her death. Grandma's state will tax capital gains on the house first and then, our state will tax the capital gains as well. This is a potentially bankrupting situation for my mom, who was the one to take on the bad debt in the relationship so I am not entirely sure if her name is on the house we live in or not.
We are trying to convince her to change the will but she's the type of old honry that would rather leave scorched earth as she won't be around to deal with it. She barely left my aunt enough for her own burial just so she knows she wasn't forgotten and the burden doesn't fall on my cousins.
I wish the housing "expert" would have brought up zoning laws when discussing housing in LA, as that's a very specific reason for lack of housing. Also perhaps mention the NIMBY movement whenever multi-family buildings are approved. Missing those two points doesn't give me much confidence in her expertise and makes it look like she's pushing a specific narrative.
If they’re boomers, they should have signed you the house already. Boomers have held onto things for way too long.
@@ChSasifras If your grandma leaves the house to your mom in her will then your mom gets a stepped-up basis. There should not be any capital gains taxes on the house that your mom or grandma's estate would owe. You should definitely talk to a lawyer and a CPA. Some states also allow a transfer on death deed that your grandma could sign now and then upon her death the house would be titled in your mom's name. There would be no taxes owed and no probate court fees on the value of the house. Your mom would have the house in her name and she would just need to pay the yearly real estate taxes like everyone does who owns property.
I am in the PRECISE SAME situation as you. Although, I am lucky only in the fact that I am a only child and I will inherit my mother's house when she buys the farm. Until then: I am typing this comment, and living in, mom's basement....and I am shockingly old (56 and NEVER been able to afford a residence of my own).
she stole my heart with that "houses are really f*&^ing expensive"
That did absolutely nothing for me, but she is clear 9
Honestly you probably shouldn't have even said this, it kinda exudes energy like "oooh educated woman who swears" lmao
@@ExtraVictory...aaand, surprise surprise, the account is full of sad, pathetic anime girl videos.
@@ExtraVictoryNo one asked
@@krissv3ctor512 did i ask if someone asked?
Very pleased to see gentrification addressed. As a kid, I didn't know what it meant and confused it with beautification because that's all I saw: flowers on street corners, fancier streetlights, cleaner buildings, etc, and who wouldn't want that? The idea that these things cost too much money for the original residents, and that the costs were intentional, flew right over my head.
lol yeah, let’s make everything look like sh1t intentionally so that we bring the house prices down. That’s some disgusting logic.
Who wouldn't want gentrification if you can afford it, higher quality of life and lower crime seems like a great deal. Everyone wants cheap housing until it's put in their neighborhood.
@@ОскарПитерсон-я7гyou are mistaken deeply. Nobody wants to do these things. But you do what you can to survive.
@@pegasus2682 maybe you missed the point where original residence are being misplaced and can’t afford the neighborhood they grew up in.
@@authorizeking4027 I understand that's what gentrification is but I don't think it should be viewed as a negative societal issue considering there are benefits for those who can stay. Acting as if an area becoming more desirable for other people is a bad thing is ludicrous.
This is why everyone needs a roommate or still lives with their parents.
That would reduce demand. I’m not sure why more American families don’t live together. The houses are big enough…
@@RobC1999 it's definitely a cultural thing. In Jamaica I'm used to seeing families in 5 bedroom houses. The parents share their bed and siblings sometimes sleep together.
In America it's such a cultural norm for the parents to sleep alone after the kids are a certain age (like 4 years old). And theres an expectation that they would move out at 18. At least many years ago it was possible for an 18 year old to move out... Now not so much.
Actually just saw a statistic (dont remember source) that stated that more people are living with parents now than in the last 90 years.
Live with my parents, sure. Getting a roommate, no thanks.
@@RobC1999There’s this 1950-60’s expectation of nuclear families, that you can get a job fresh out of high school at the local factory with nothing but a firm handshake and a suit, and make enough after a few months to put a down payment on a house and put D kids through college. That’sAmerican dream” never left.
Meanwhile the value of grandparents are slowly being rediscovered, helping to raise kids. You make enough and live in the suburbs you’re basically paying a day care to play the role of a grandparent
I love that the answer to "where are they getting housing right?" is "not in the US".
Yeeeep
Yeah but where are they getting is right? Honest question because I live in New Zealand and we have this issue and so does Australia.
Not in Canada either
Japan
Not in Europe for sure
I'm an architectural acoustical consultant. There are some issues with noise control in mass timber buildings because it's so much less dense than concrete and architects want to show the exposed wood which makes it very difficult to add noise control elements. There are a lot of people working on this but it does make noise control difficult.
do they not have framing with insulation and drywall? it seems like that would be like living in a drum.
@@PoorMuttski mass timber is like basically slabs made out of layers of wood running in different directions. It's isn't built with your typical joists with a plywood sub floor etc.
@@McCallEdwards Can our now-diminished resource that is our forests even take that kind of burden? Or is it a lot of wood "waste"?
what are you a wood scientist?
@@kyleb5927 literally yes
Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.
Consistently investing in high quality dividend paying REITs & companies over the long term is a relatively easy strategy to create generational wealth. My "boring" REITs portfolio paid me over $4,000 in dividends last month.
Time to focus on high-value plays with discounted dividend stocks! I'm forever grateful to my CFP. I now have a six-figure REIT portfolio, including stocks like AMT, SPG, and PSA. Currently, I own 606 shares of AMT, which brings in $3,800 annually in dividends.
I want to play the long term game with well diversified fund. Please how can i reach this CFP of yours?
I'm been guided by "Melissa Terri Swayne" who is widely recognised for her competence and expertise in the financial market. She has a thorough understanding of portfolio diversification and is regarded as an authority in this field.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
My dad was talking the other day about how he was so proud to have bought a house by his early 30’s (in 1999), and I’m like yeah and you were making 60k with a union job, you had a VA loan so no down payment required, and the house cost $90k. I make $50k a year (no union) and houses are at least $450k. Wages are not increasing significantly but housing costs have quintupled. I have to pay double what he paid for a 4 bedroom house to rent a 1 bedroom apartment. We need a massive overhaul of the housing system
adjusting for inflation, 60k in 1999 is almost 115k nowadays 😢
@zdavidzz What is bro yapping about 💀
@zdavidzz can you extend this offer to me?
@zdavidzz it seems like you are missing the point. Most people would jump at the chance to rent half a house for $1000 a month. That's an amazing deal in today's market. I pay more for less and I am paying the lowest rent avaliable in my area.
The truth is people of our generation will have to move overseas. During the pandemic when I worked remotely and I stayed about 6 months in Ecuador and I stayed in Cuenca which is a fairly big city there. I rent a 2 bedroom with 1,250 square feet, it had rand new appliances, dining room and a balcony with a Jacuzzi and I paid paid $ 545 per month. This was considered a upscale neighborhood too. Food also cheap, got 24 eggs for only a $ 1.95. I know Ecuador has issues in recent times but when things get better, I packing up and moving down there. America is a greedy, toxic country.
She was my professor. Loved her. Still love her. She makes my day every time I see her on campus.
That sounds like a crush! :-)
Get a room.
Someone is in love 😂
I have no idea why everyone is making fun of you liking a teacher it’s hard to find someone who loves their teacher means they’re a good teacher 😂
Whatever
As a Chicagoan, something about high rises made of wood just... doesn't quite sit right with me.
Lol. Yeah hopefully not a repeat.
I'd rather live in an actual tree than some laminated building. Last place I toured, the porches was basically melting off the side of the house because the landlord patched it up using plywood and they used plywood for damaged portions of the basement dry wall...when there's a moisture problem
Why was there a cow in the city anyway?
@@blairhoughton7918fresh milk, or maybe it was a therapy cow.
She did say it was fire resistant.... somehow
I’m glad you acknowledged how red lining is still affecting communities to this day.
Red lining is nonsense. African Americans have a higher default rate than white americans with the same credit score.
Her description of homelessness was also very true. There is more at play, but solving for cost would solve the problem. We used to do that.
“They call it the American dream because you have to be asleep to believe it.”
George Carlin
It always was a dream. Only the white, GI bill qualified really lived it.
Always remember your Carlin 👍
@@FATTONYKAUAI don’t see the irony of a guy who got rich saying the American dream is dead?
he wasn’t he got arrested for not paying taxes and had to keep doing specials to pay them back for life
We don’t HAVE to be short on homes we are making choices and those choices do not prioritize basic human needs
Like most of the budget going to weapons and killing people
"we" aren't making those choices, my guy. I am sure that the vast majority of us WANT a dam house to call our own. It's these greedy bastards who want nothing more than what is in your wallet and the large lack of useful regulation behind a age old market.
Yup!!!
This is a known and decided policy, boomers and gen X who have been in the housing market have a vested interest in increasing their property value, and have been voting for politicians that implement more housing regulations,this deives prices way up.
So without any regard for future generations, boomera and gen x again allowed policies to screw over millenials and gen z
But think of all the Shareholder Value being generated for the investor class!!!
For a bit more nuance: A person must live in Vienna for a minimum of number of years to qualify for public housing. You can't just move there and expect the city to find you a place to live.
Thanks for clarifying! I live in the UK and was about to start looking for jobs in Vienna 🤣
She is purposefully spreading misinformation and politically loaded speech
It also helps that Vienna's population about the same as it was in 1900
A friend got public housing at the second year lol.
I think the real point is that the huge supply of public housing imposes a constraint on how much private landlords can charge: public housing is a direct competitor, and if they charge more then people can and will opt for public housing.
Kate's explanations are easy to understand and digest. A true sign of an expert.
House = too expensive to afford.
Food = too expensive to afford.
Living = too expensive to afford.
Really curious to see where we're at in 20 years... see you then, if we make it!
Nah, I don't want to see y'all in 20 years. I'm out.
Let me add to your first 3 statements:
Working wage: Staying the same and not going up like above.
@@RhinoFeed "and thanks for all the fish."
Read "Snow Crash" for an accurate depiction
First world people with first world problems lol stop you spoiled brat. If us living in 3rd world countries with very corrupt officials are still able to survive, you definitely will in 20 years especially in the land of america. You guys really don't know how good you got it compared to us people here in SEA.
How is it legal for massive corporations to own homes.. I hate how much problems are caused by corporation led politics..
There should be laws against corporations owning any property that are meant for housing
You are right. @@Marksman3434
@@Marksman3434 how are they gonna makes laws against it when the ones in power are just puppets to these money machines 😂
This is America
Because corporations are "people" now, which is the most insane thing ever. These non-persons can own entire housing markets and price out locals until we're all threatened with homelessness. I hate this world.
I saw a video of a city setting up very small homes until something better comes along. One unhoused gentleman pretty much said, “good enough”. Roof and heat/air conditioning. A door with a lock.
But this real estate expert says it's not a solution. More like it's not profitable enough for the construction companies and realtors.
@@YordleScoutexactly. we've recently seen pilot programs that just give homeless people a motel room. not only is it an overnight solution for getting people to the next steps they need to take to improve their circumstances, it turns out to be cheaper than a lot of the roundabout ways that are failing.
@@YordleScoutSeriously? It's insanely profitable. One of those mini units in LA cost the city $830k on a lot they already owned. It should realistically cost $40k with a nice profit for the builder.
Homelessness is an industry now. Tons of non profits have cropped up taking advantage.
Them all having apartments, and having the recourses (or recourse centers) needed nearby or on the property. (I.e career agents, library, etc) imo it’s the bare minimum. A lot of homeless ppl don’t know what they need to let alone how to get the resources to achieve it. The goal with having apartments and recourse centers in walking distance of each other is to help them move into better housing and transition back into society. I think tht having tiny houses is the opposite and unnecessary when we have so many houses and apartments tht are vacant around the country. There will always be ppl moving in and out of shelters but I think shelters w limits on them should help these ppl with nxt steps. These kinds of living spaces are a good way to get there.
@@YordleScoutIt's an inefficient use of the land. Just not dense enough.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Not a single mention of zoning laws, and how one big difference between Vienna and most of the US is that they have a lot of 5 story buildings where the first floor is shops, grocery stores, and similar things. Whereas those are illegal to build in most of the US, which is why it takes 4 years to get a new project approved in certain counties in California.
I'm disappointed.
Those types of buildings are labeled as "Type 5" US, they're relatively new and use a 5 story wood frame with a concrete base floor shops, and stonkbucks and yankee candle
Yeah, Vienna expanded their housing supply by 10% to kick off their public housing program. That was 100 years ago and their population is slightly lower today.
Yep, and don’t forget about the NIMBYs who fight every time that a developer wants to build apartments or duplexes next to a single family house neighborhood because “it will drive down the value of my house “. Like, invest in mutual funds if you’re so worried.
Why do you say they are illegal in the US? Mixed-use developments are the Majority of new developments where I live.
@@JoseRodriguez-uj5gr Well if someone buys a house for $270,000, if anything they usually want to keep that value or grow. Let's say they have to move for whatever reason after a few years and the apartment drops their house value by $30,000. Well now they have to pay that mortgage AND one for their house their buying at the place they are moving, and that's assuming they actually have enough to put down a down payment.
It's sad that the value of a human life is less than profit. The solution is simple, build affordable homes, keep them affordable, reduce the cost of the overpriced existing homes, and stop allowing housing to be a traded commodity. Everyone knows the reasons why we have this problem but no one wants to fix it.
It is a sad realization indeed. It's a value that's like a dark shade of American culture. We could have something really beautiful but culturally we choose not to.
Yeah but if I put money into building affordable housing, I won’t make as much money compared to if I build a luxury mansion. And I want more money because money means I better than you
Its infuriating honestly. When are we, the people gonna say enough is enough
Take out a loan a build a housing for them
Most people do want to fix it, but no one who does has the power to do so. If the US and Canada and so forth were actually democratic, meaning by definition "ruled by the people" this would have been totally solved years ago, but all we can do is choose one of a tiny selection of politicians whose loyalty is always first and foremost to the wealthy, regardless of their party.
it's disgusting that this country allows greed to sink it's tendrils into the things people need to live
That's a pure capitalist society for ya.
Retiring early by not having kids and moving to Europe. By America.
Young people aren't building houses.
Why?
@@hvaball150 Basic inflation.
It's crazy they just discovered greed all of a sudden.
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Tthe US stock market had been on its longest bull rally ever makes the widespread worry and enthusiasm understandable given that we are not used to such unstable markets. As you pointed out, it wasn't tough for me to earn over $780k in the last 10 months, so there are chances if you know where to go. I hired a portfolio advisor since I was aware that I needed a solid and trusted plan to survive these trying times.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
I've heard this since 2003.
The information on the Corporations owning these homes now make so much sense on why there is increased rent. My wife and I have been looking to rent a place for the last few months and every place I looked for online went through a company that owns it and rent was like $3500 for a two bedroom house. it's insane that they have allowed this to happen.
She is only half right about half of all rentals are small operations.
You can fact check me
those big corporations drive up the prices. and small landlords are usually not rich, so they would also not deliberately rent out below market price. that is a luxury most cannot do. the ones who could afford to lower the prices (big corp) instead are driving them up.
@@User-54631 I wouldn't know where to even look up that kind of data lol
@@User-54631and what was the statistic when housing was more affordable? Im guessing much lower
A big chunk of those corporations are small operations run by families. Incoporationg your property gives tax cuts so families usually incoporate.
I’m seeing a lot of people who are not even maintaining the property increasing the rent. Some should probably not even be lived in at this point. They are more affordable though. So I guess if you don’t mind things like mold, broken appliances, and no ability to open a a window you are lucky?
So you stance is someone else is coming into their kitchen and breaking their stoves and windows or are the people who live there breaking it?
Here is the USA the things that the landlord is responsible for are the landlords responsibility. Pretty difficult to avoid mold when there are major plumbing issues the tenant was directed to duct tape until he gets around to it
@@User-54631hey dumbass. Homes degrade naturally and need updated....and guess what. Thats the job of the land lord
@jessymanders1896 The major plumbing issues nobody mentioned and that none of other inhabitants of the building ever heard about, and those that are being duct taped for 9 months alrady, right?
I can’t understand what you are trying to say. I think the plumbing was mentioned or you wouldn’t have typed about it. It’s been years actually. Is that what you are questioning?
14:57 “some places in rural Texas”
Circles the one spot west of Lubbock that has a major city
"One of the most rural places in Texas... El Paso city"
(She does have a point though, housing prices were good here then they went up a few years ago)
This expert is super dumb.
Nobody would ever call Lubbock a major city. Period
@@deSeriosa Lubbock is Texas-big, I'd say 10th largest population counts (BTW they were talking about El Paso)
@@deSeriosaTalking about El Paso which is big on its own and, when combined with Las Cruces and Ciudad Juarez, is a real giant.
i just came here because i noticed nobody commented on how you pronounced "Regina" like "Re-GINA" @7:32
Fr 😂
The way I opened my phone and ran to the comments cuz I heard the same thing.
I think shes Canadian, and that's how the city of Regina, Saskatchewan is pronounced.
I IMMEDIATELY RAN TO THE COMMENTS
Arkansas use to be one of the most affordable states in the country. Now you can barely afford a crappy apartment and they stopped building houses.
I moved out of Arkansas this year, my 600 sq ft 1bed 1bath apartment started at 480 in 2019 and he was about to start charging me +650 despite no changes, upgrades, or even fixing the multiple problems the apartment had. All places to live there are reaching a minimum of 1K per month on average now.
I saw a wooden high-rise the other day in San Antonio. I couldn't believe my eyes, such a high wholly wooden structure.
Watching this - living in my van for the 5th year. Somebody please do something to fix housing
How are you affording a phone and internet?
@@pinkorganichorse phones and Internet access are orders of magnitude more affordable than living literally anywhere.
@@Pyrosity The furry is right, affording a phone has nothing to do with affording a house
@@pinkorganichorse Is your phone and Internet $2000/month? If it is you're getting ripped off 😂
@@pinkorganichorse I have a Tracfone smart phone that cost me about $70 to purchase at Target. A year of unlimited calls is about $150, and I spend about $40 each month on data. The camera isn't very good and I probably have less space than my peers, but it gets the job done and is affordable for me where an iPhone or fancy Android isn't. I replace my phone maybe every 3 years or so, whenever the software isnt supported and struggles.
I just wanted to offer numbers to say that yeah, someone can have a phone and internet and not be able to afford housing. I hope this helps.
She absolutely nailed this! I feel like I learned a lot. Also I have never heard a more Canadian accent in my life
OK THANK YOU I WAS CONFUSED! I was like “…why does she say “house” like me???”
@@rachelmae9555 wait, i'm Canadian too but how else are people supposed to pronounce it 😅
@@silenx85 many Americans pronounce it more like “HOWse.” They don’t have the “ah-oo” diphthong when they say it.
"Landlords are charging more and more based on upgrades they've made"
I lived in a house that had not a single uncracked window, a front door that didnt close, and had a hole in the ceiling and the landlord raised my rent by $250 yearly until i was forced to move out due to affordability lol
This has been my experience as well. Landlords only make upgrades when they absolutely have to.
That’s disgusting. What right do they have to raise the rent? They hold homelessness over our heads if we can’t afford the sudden raise in price.
Slumlord. So glad my property manager has fixed every single thing I've reported as broken. The building was built in the 70s but they take care of it
I think upgrades means money they spent on the property, probably to make it technically liveable.
Yeah that doesn't make any sense at all, did she mention millions of migrants are added every year?
We have a housing shortage but add millions more to burst the seams.
Instead of offices converted to housing, I think they would be great schools, youth clubs, mental health clinics, etc. Same public-type interface, similar facility needs
Problem is that none of those facilities are profitable.
And then you could convert old schools into housing since the structure of these buildings is more like the “old office buildings” she described.
Yes! Revival of the "third place"!
@@patrickboldea599How about we just give up this obsession with keeping old buildings. Tear them down, build better and bigger ones that actually make sense... Those who made bad investments will actually have to pay for it instead of passing the bag...
@@chronometer9931 in some cases, it is actually "easier" (financially, technically, etc.) to tear down old buildings and build anew, but it is not something you can say for all of them. sometimes the demolition itself is not doable or would be too expensive depending on the area, type of buildings, neighbouring buildings and other factors.
The rent to income graph animation thats shown and the printout tell me the preparation behind the scenes is solid. 😀
I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .
I agree, It's not just the prices, but also the increasing interest rates that are making it more difficult for people to afford homes. With a good FA you can make up your portfolio.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Mind if I ask you to recommend this particular coach you using their service?
Her name is Sonya Lee Mitchell can't divulge much. Most likely, the internet should have her basic info, you can research if you like.
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
I really hoped to hear something about restrictive zoning laws, and Americans' obsession with single family homes. We need more apartments and condos, and need to stop the bipartisan NIMBY issue. Existing housing owners (people and corporations) are interested in restricting supply because it helps their "asset" (their housing investment) grow.
For some odd reason, a continent tagged by americans ( as far as i know ) as No-Skyscraper Land has way less (though still a ton and a half ) housing problems. And, for some reason, that continent tags USA as absolutely no flats land cause god only knows why. I think I'll leave this in american hands... though considering how dumb we are with "free" education, i don't think they'll realize what is the solution i meant.
thank you for pointing out that the problem is bipartisan in nature and proposing realistic solutions
That's the corporate propaganda working. Yes yes we need more $4500/mo units that you have no personal equity in. That's the fix.
Glad I'm not the only one who finished the video and wondered "how was zoning not mentioned?"
One of the most important factors period.
@@willis936 I really think equity is part of the problem. When a house becomes a financial instrument that only increases in value, then the problems we are having right now are inevitable. If I can buy a house, do nothing with it, and flip it for double the price in a few years, why wouldn't I just do that every day? And lets be clear, the reason housing prices go up, is because housing prices go up. If one house in a neighborhood increases in value, then the next time a house in the neighborhood sells, the seller can ask for that same inflated price.
My parents bought a house in 1996. They were 28 and 23. I was three years old. We have lived in this house ever since, in a house far too small for three fully-grown adults. We can’t afford to leave.
if I knew where the economy and housing was going to go 5 years ago, I would have stayed at my parent's longer.
Kinda sounds like they need you to grow up
Get out and make your way in the world.
THANK YOU! Share, share, share this, friends. We all know why this is happening, and here's an expert telling us we're right.
Why are corporations allowed to own residential housing and charge rent??? That’s LITERALLY FEUDALISM
It's actually LITERALLY capitalism. I'm not providing Zillow and services in exchange for protection.
Because it is the beginnings of our transition to socialism/communism in the states.
@@ajhaynes8204wouldn’t it actually be “that’s how capitalism works”?
@@Uriah625yes its corporate greed in a capitalist economy, the communist/socialist comment is a guy who thinks anything bad/"i dont like it"= socialist
@@xy-lk8go so what is this corporate greed thing? Isn’t the whole purpose of a corporation to grow and profit?
As someone who's lived homeless; I would rather live in an imperfectly configured office space than to not have these spaces used because they need to meet such specific code requirements. I think most would choose a roof over their heads than a bedroom opening window. But that's just my perspective.
Agreed
The thing is though, some of that code is for your own protection. Having bedroom windows that open is because of fire safety.
And if something were to happen in one of those buildings and hundreds of people die bc the building wasn’t configured for living, it wouldn’t be good
@@elise85391 Agreed. And we do live in a notoriously litigous society...
As someone who was also homeless for 3 years: I really don't think you want hundreds of people living in a high rise building without sufficient plumbing for toilets and bathing, or without appropriate fire safety measures.
@@ValkyrieTiara I agree; in other countries there have been horrific fires with mass deaths because of inadequate fire escape routes. (happened in South Africa las t year in one of the many "hijacked" buildings where a gang of criminals took over an abandoned building and rented it out to desperate people)
My parents BUILT a 1300 sf house on 8 acres with a well for $15k when my Dad made 11K + some overtime if he wanted it. My mother made 2k. Last time that house sold it went for 700k. It's been added on to over the years, but it's not a mansion.
Ya, things were way, way more affordable in the early 60s.
Assuming 1964. The price of gold was 35.35 per ozt. $11,000 was 311.17 ozt of gold. Spot gold today is 2292, so youre dad made todays equivilent of $713,201.64. Your mom made the equivilent of $129,658.
We have a dollar problem that cant be fixed until we back by gold again, and bring back production.
and then you had a whole segment of america who were redlined out of being able to buy.... Imagine that set back for their kids later.... no appreciation cause government told them no..... Layers
@@umoramayori And that happened when the USD is still the reserve currency. Inflation is worse in many other areas and wishing for no inflation or deflation is not a pure blessing either since it means your economy is stagnant or declining like what we see with Japan. I think the issue is more worrisome to American especially younger ones since we haven't seen crap like this in the country with high inflation and rates since Jimmy Carter and it was arguably
worse.
We need to do something about this, yesterday.
I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days.
You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who were forced to witness the 2008 financial crisis could expect to generate a large wage.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that help
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
5 years ago, I paid $400 for a one bedroom in BF nowhere East Texas; of course, we had to leave after a year cause not even the WalMart was hiring
That's too bad; options for working remotely are way better on this side of the pandemic.
Legislators also heavily regulate new constructions to the point where building affordable housing isn’t viable. Zoning restrictions also related to this. Boomers kicked the ladder down after they got what they needed.
I think that legislation is mixed. It can be how you think it is. But also, they are making sure that we have safe housing, and not have house built like the 1940's. That is feasible in our time without the costs rising in such a percentage. (efficiencies are at the point where nice houses for everyone could be affordable)
@@VexylObbyHow does zoning mostly single family homes provide safety?
@@chronometer9931 I meant more for quality of housing than type. Even though homes could even be made efficiently without so much profit too.
Income isn’t increasing yet they still expect people to be able to comfortably afford a house/apartment.
We better get our act together. If you make an environment where people cannot afford to live, you will inevitably get a revolt on your hands...
They don't expect people to do anything but spend. They want us all to have wages low enough to be able to spend on junk while not quite enough to invest and/or afford homes.
They don't expect you to afford anything. They expect you to die. There are two economies, and they are becoming increasingly independent. They won't need us for much longer. It's best to do something about it before then.
Even when your income goes up so does everything else. So in the end it really makes no difference
@brownskinbeauty. Yep. My salary increases a little bit each year...but so does my rent
I believe value growth investing is the most effective approach, combining growth potential with value principles. By evaluating growth stocks like a value investor and comparing them to peers, investors can find opportunities. Small-cap growth value investors can thrive, but it's essential to prioritize underlying value and avoid overpaying. The goal is to buy great companies at a fair price, not mediocre ones at a discount.
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
Navigating the housing market alone can be treacherous. I learned this the hard way, losing significant value in my real estate investments due to poor property selection and timing. However, about nineteen months ago, I sought the expertise of a professional financial advisor specializing in real estate. Since then, my initial investment of $190,000 has generated close to $2 million in returns. This experience has convinced me that when it comes to investing in housing, the value of professional guidance cannot be overstated.
The approach appears simple. I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging and I could really use some guide, but are they really that effective though?
Finding financial advisors like Rebecca Noblett Roberts who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Great piece! She appears to be well-educated and well-read. I ran a Google search on her name and came across her website, thank you for sharing.
1:50 Kate did a great job of answering this question and going straight to the facts/numbers. I commend Wired for picking knowledgeable experts on various topics. I live in TX where rent prices have gradually been increasing, but the Northeast and West Coast folks likely have it worse.
That first graph is complete BS, they use nominal rent figures but inflation adjusted income figures.
Any actual expert on housing or economics would have immediately recognized this. So this person is an ignorant hack spreading misinformation.
Unbelievable that there was no mention of NIMBYism and no mention of strict zoning laws, and why mention rent control?? It’s true that this is a supply issue, rent control does not increase supply
Typical left-NIMBY nonsense.
Exactly correct!
The easy answer is blaming everything on greed. That is nonsense.
California has the highest number of homeless in the US. If this was all due to greed, does this mean that californians are the greediest americans!?
@@wolf102030 she skims over an incredible amount of info in this vid lol
i think she is trying hard to empathize though
I think that rant and mortgage rates should be capped so that no landlord can charge so much for someone to have a place to live.
@@justamom4902 if we let builders build and the number of apartments and homes increase, the price will go down naturally
So in conclusion…. We’re fcked
yeah pretty much. it's ok though. there will be another catastrophe that will steer us in the direction they deem fit for us.
...so far, but nothing lasts forever.
Eh, give it time
@@Tmagetglaze
@@dwaynekeenum1916 ew wtf
I love how a good amount of the questions asked have swearing included.
How is it legal for foreign ownership corporations to buy much needed housing here!! This is crazy and doesn’t happen in other countries
Unfortunately, happens in many other countries too
Because it’s socialism not too!
Very true.
They could make money investing in increasing supply, but I guess keeping people paying rent forever is better for them so they do that even though worse for society and all working class people
cries in new zealand
You confused Blackrock and Blackstone. Blackstone is the private equity firm that is buying single family homes. They now own over 80K
She’s clueless
Yeah Blackrock just invests in the rental real estate industry via buying up REITs
A lot of people get the two confused. And yes, Blackstone deals heavily in real estate.
Blackrock isn't much different - "investing in trusts buying up real estate and rentals" is like saying, "I'M not buying a house, my dad is buying the house for ME."
i believe they are both involved, just with different investment strategies/products, but they are equally guilty in reality
6:20 There's seems to be two types of gentrification, or two definitions of investment in a neighborhood both called "gentrification." One is where old residents are somehow "forced out" by new residents, like rent hikes or shutting down and refusing to renew leases as the building is sold or developed into higher-class properties.
The other is when new investment occurs in a desirable neighborhood that doesn't force out the existing residents. Like converting unused lots or old vacant buildings.
theres only one type of gentrification - you pretty much have it in the first bit but add investment. The second one you're talking about is called infill. Cities want infill and a light touch of gentrification - to keep new investment coming in while at the same time keeping rents about the same for the majority of units
This video did not get the traction it deserves in the algorithm - she is fantastic, and 100% right. As someone who would LIKE to own a house someday, I'm coming to terms with the fact that it'll likely never happen.
Why is every issue on housing ignoring zoning laws, increased land value (yes you need to buy land to build a house i had to repeat this to many ppl) lack of incentive for rentals and condo construction, property taxes for building houses (increases costs of building houses), ppl building much larger houses compared to the past (house size has increased by 100s of sqft) and the lower supply of housing along aka lack of housing being built compared to the past.
Many cities prioritize single family homes rather than apartments and condos on land that is already scarce and or expensive.
The FRED database shows alot of these these stats.
Whatever. The local village blocked new 8 family apartments because the land is zoned industrial. As if heavy industry by the river side (that needs to dump chemicals) is coming back any time soon.
@@whickervision742 so you agree on my first point about zoning laws?
Bang on, not enough of this video talked about land use. Which should be the #1 issue here.
The single family homes all being built are also huge now. Nothing is built small or modest which is another major issue with the supply. Everything small is in such demand while being really old. This wasn't the case back in the 60s-80s where houses were much smaller and in mass.
@@silentstorm5439 yep. I tried to explain this to many ppl and just got called a boot licker for pointing out these things. Atp it just feels like ppl dont want solutions and just want to be in an echo chamber.
It's important to make the distinction between gentrification and displacement because while an old building is knocked for the hipster cube, it may just be affordable housing. Remember gentrification happens to a place, displacement happens to people
We need to consider quality with affordable housing. We seem to forget that quality matters.
There are no affordable housing units in a gentrified neighborhood.
Working a 10 hour day construction is the poverty line now.
As society progresses, the proportion of production value that is distributed to both labor and capital decreases, as land takes an ever greater share. We need to socialize land values instead of a portion of labor and capital like we do now through income taxes. Land taxes! Georgism is the only way.
Working 70 hours in trucking - same. At least I've got free room and board but no money for savings or bills
@@phil42you just have poor money management skills if you do 70hr weeks trucking and have no savings.
@@originaldeltavery easy of you to say that about someone you know nothing about
BS. Contractors and their subs, esp. if they are W, make big bucks.
Inflated prices due to corporate greed. Thanks for confirming what we knew.
Eh, it’s mostly landlords and homeowners who protest new housing supply
Government printing money, off shore money being laundered through our real estate and more immigrants than housing starts caused inflation.
What is "corporate greed" and how did it cause inflation? And who did you vote for 8:05 ?
Inflation due to lack of capitalism
What is greed? When you sell your car, do you choose a price designed to make it affordable to whomever wants it? Or do you charge the highest amount you think you can get? Does this make you wicked and greedy? Read Economics in One Lesson by Henry Hazlitt. Audiobook free on TH-cam. Remember, that you and the people you like believe the same thing does not mean you are right. Educate yourself.
@@antonioiniguez1615Boom.
Can we address that the main factor affecting affordability is the lack of housing supply? We've had massive influx to desirable cities and states, but everyone's grandma goes to city hall to block any new housing because "neighborhood character" or some nonsense.
The people who made this video clearly don't understand economics
very good point. most young people that are looking for housing don't get involved in their local city politics, so they aren't present at those meetings or events that occur. it's all the old biddies that don't want their "charming" neighborhood to be updated or have more people because "something-something safety."
She said that supply was the problem at least 3 times.
@@joelkatz7923 I doubt he even watched the video.
Nimby’s
The first question hit so hard, I always see "luxury" housing going up where I live. It's often worse than the lower cost apartments in my area built a long time ago but the rent is way higher
She mentions supply issues, but goes out of her way to not draw a line to the biggest issue in supply, which is regulations that make building difficult. She points out Vienna for its enormous public housing initiative, but not Japan where costs have been kept low just by allowing people to build.
Also though their houses are not built to remain up for decades. They’re depreciating assets (which isn’t a bad thing honestly) and they worry a lot about the ability for these homes to withstand natural events. That’s the biggest issue. Those homes gotta contend with and people prefer the security of homes that are modern. Honestly, it makes a ton of sense to get one of these older Japanese homes, renovate it, and have a nice place to stay in a great country.
You're entirely ignoring that Japans houses are not meant to last more than 30 years. Full stop. They intend/trentd towards totally tearing down houses (especially outside of the countryside) every 30~ years on account of new fire safety standards and earthequake prevention tech for the houses, which are often cheaper to do in a full rebuild as opposed to a renovation.
But also housing costs are still bad in Japan *outside of the Rural areas*; Its expressly stated as a reason for why, in 2023, Japans birth rate and marriage rates are at record all time historic bad lows.
Got to love the explanation that a mismatch between prices and wages is the result of some magical force that can't be explained. It's because of the systems /social organization that we all accept. Prices go up because people choose to raise them, wages stay stagnant because people chose to not raise them. No one thinks there are other options. We could choose to change the rules of the society and systems we created.
Careful bud, you're going to make Milton Friedman's ghost *very* angry.
I have recently been loving all the Wired Tech Support videos and have been re-watching videos produced years ago, and honestly this was the most depressing one yet 😢 Really appreciated all the knowledge though, thank you!
I’m more interested in entire countries that are getting housing “right”.
Austria. Social Housings are really clean and well maintained (unlike France where social housing is a sinkhole), very low rent.
As rent is really cheap, you can save more and can buy a house in Austria (probably not Vienna) more easily. Beside getting 14 salaries a year.
I would also suggest that Japan gets it right. It's odd because Japan was once known as a very expensive place to own a house in the 1980s.
It depends what you mean. Most European countries have pretty good public housing or subsidies to make housing affordable to renters. But their ownership rates are extremely low compared to the US. So...do you want affordable rental housing or affordable homes you can purchase? I would argue that no one is getting it right because no one has both affordable rentals and for-sale homes.
Even counties like Canada, Germany, definitely the UK are all having c=housing crises of their own. Cold comfort, but the whole world is going through it not just us in the US.
Japan. What Vienna did is impressive but their job was made easier by the lack of population growth. In Tokyo alone, in some years they’ve built more housing than the entire country of England does in a year. (With only a quarter of the population.)
@@stitch0714”Housing” in Japan sometimes amounts to fifty cage-like bedrooms in shared apartments. You should look this up. Thousands and thousands of people in Japan living inside 100 square feet.
I'm surprised you didn't talk about how zoning laws only allow single family homes to be built and how that increases the cost of housing
Yeah its pretty silly
And not just zoning, there's also parking requirements and other regulations that make it illegal to build housing in places people want to live!
I don't see how that couldn't be the main factor in making housing expensive
yes, she rambles about how the housing supply is so low, but gives no explanation for WHY. a totally unproductive and unserious explanation of the housing situation. any discussion of housing supply needs to focus on zoning and nimbyism as the reasons for the lack of supply
+ she made multiple statements that are just not backed up by academic literature.
“Building luxury housing drives up costs for everyone”. I mean what??? Isn’t she a professor? This has been studied and measured countless times.
Not to mention her rent vs income graphs are completely wrong as well
To be fair, she did address this, indirectly. When a post asked, "where are they doing this right?" (1254-13:50) She highlighted Vienna. She pointed out the city is dense. That's the opposite of single-family-house - suburbia. She also pointed to the ownership: ~60% public housing. Maybe if she elaborated on that for another minute, she would have hit the zoning difference and related costs.
🌹I was once homeless, got into drug's went to prison, I'm glad I made a productive decision that has changed financial status forever and making $170,000 in just 2months in forex bought my first house last week , God is absolutely done more than enough
I started pretty low investing in forex though with $2000 thereabouts with the aid of an investment enthusiasts(Alvarez Harry Flectcher)The returns came massive. My son is very happy , telling me of new friends he's meeting
Wow 😲I know this Man mentioned here . Alvarez Harry is really good with and on his job. He's helped a couple of families and individuals' finances, I'm huge beneficiary of his platform too
Talking of been successful I think I'm blessed if not I wouldn't have met someone who is as spectacular Mr Alvarez
Money invested is far better than money saved, when you invest it gives you an opportunity to increase your financial worth
Having a perfect manager like Mr Alvarez has save me alot it's high time I do what's is right and recommend him to vervonel
This was great! Kate Nelischer is great! So knowledgeable and explains things so well. Bravo
14:55 yeah it's affordable there because thats tornado alley 🌪️
Just buy it there and get something else than your cardboard walls. You should be ok.
Every location has its weather problems.
@@devilsadvocate2643have you heard of Joplin
should start calling cali fire alley
It's so over for us, we need a miracle if we wish to ever own a house
We need land value taxes. The private capture of the raise in value of land is the problem. Henrey George figured this out in the late 1870's. Georgism is the only way!
Depends on where you want live. If you can't find any house affordable, then move. Sorry if that seems cold since you have family and friends, but you have to do what's best for you.
Yep go ahead off yourself and make room for thrifty immigrants
@@millerrepin4452 There is always a place you can afford. Requires flexibility on your part. Move.
@@millerrepin4452 Or we can tell the NIMBYs to stuff it and build without their input. Sorry if that seems cold but you have to do what's best for you.
I feel so lucky to be an 'elder' millennial. We bought our first house in 2013 for 175k, 2 bedroom 1,100 sqf. We sold it in 2018 for around 250k and bought a 350k house which is now worth 500k+. (both new construction) We will be here forever now though since everything else is so expensive now.
This is a very needed video. Thanks for this excellent series Wired.
Corporations ruin everything.
And at its source, capitalism
This is probably the most interesting topic as it is one of the most serious as it fluctuates the most and affects us all
I was so captivated by the way Kate spoke! So engaging and educational. Part 2 part 2 part 2!!!
SO glad I left SoCal and moved to somewhere that had decent house prices and the cost of living was/is decent. SoCal was ridiculous. Houses that should be condemned were selling for hundreds of thousands of dollars. New condos were going for $500k.
Did someone really ask why corporations are buying houses just to rent them?
Is that a real question?
I live in Buffalo and there's a decent amount of development the issues is that it's all rows of townhouses or buildings of lofts that sell for $300k and the majority of the area can't afford that.
it would be a dream to afford a 300k townhouse considering where i live. Houses near me are 1 million
I grew up in O.P. My family sold their house for 375k in 2020 (before the Quarantine) after buying it for 220k in 2007. I think the house is more than what it sold for now…
Regarding the redlining topic, I am a VP who works for a CRA regulatory department for one of the largest financial firms in the world. The Community Reinvestment Act (CRA) of 1977 was enacted to combat redlining by encouraging banks and financial institutions to meet the credit needs of all segments of the communities they serve, especially in low- and moderate-income neighborhoods. The CRA holds banks accountable for providing fair access to loans and services in these areas, requiring them to demonstrate efforts to reinvest in underserved communities through mortgages, small business loans, and community development initiatives. While the CRA act does not set strict quotas, it evaluates banks' lending patterns and can influence their ability to expand, merge, or open new branches if they do not meet CRA requirements. The CRA applies to all FDIC-insured depository institutions, including national banks, state-chartered banks, and savings associations.
The detail and clarity of these answers is superlatively good. I really appreciated these insights.
re: Gentrification: No, not all bad. Detroit's biggest issue is that it's a city that was built for 2 million people and it now has under 700,000 residents. That's more infrastructure than can possibly be paid for by the residents, and it's why the city went bankrupt (no, not Kwame, not unions, it simply became unsustainable). The gentrification in downtown Detroit and in areas nearby like Corktown and Brush Park has doubled the tax base since 2017. This will put less pressure on property taxes and allow for even more investment in jobs. And there are different levels of gentrification. The mixed used developments in Detroit right now are affordable to most working families of color, and most of the builders are including the affordable housing percentage for the tax break. It's a win for the city. Hopefully, this continues as the urban prairie gets transformed into mixed use "missing middle" that we desperately need.
as a fellow SE Michigan resident, I agree.
Yeah she really contradicted herself with the gentrification comments right after the redlining comments. Does a neighborhood want investment or not?
@@spootieho It's annoying how "anti-gentrification" tends to be one of those hard line stances some people firmly take even if logic (sometimes their own logic) contradicts the "always bad" narrative. Like all things, gentrification can be good or bad depending on how it's applied. Heck it can even be deemed necessary at times.
@@DelothVyrr Gentrification can be done right or wrong - greed is the decider.
A lot of countries have put a lot of limits on airbnbs and limited max rent pricing and that have helped a lot, but many countries still wont put them in place because they dont want to upset the rich people/companies owning them in the first place
I love how direct this expert is in answering these questions.
The way she pronounced "Regina" I'm dead
That's the way they pronounce it in Saskatchewan.
Well wait until find out how it's pronounced.
Ruh-jyna 😂
What an amazing educator. Thoughtful, succinct, and authoritative. This is a great video. Plus, the Canadian accent is cute af.
Her whole thing is giving me vibes of what if a Disney princess went to school instead of falling for the fairy-tale con.
Help. I think America is broken.
It's you and I who are broken. Stop crying and change things
@@drone-guyTX Haha. My comment was facetious; therefore there is no crying. However, you are correct; we as a people are responsible for fixing this.
Definitely
Always has been.
Only took four decades.
The vacancy rate note was shocking. Things are bad in Canada right now... I live in a small city on the east coast and we have a vacancy rate of 1%... no rent control
Yoooo Buffalo mentioned?? No wonder I can't afford to leave my parents house lmao
I’m the parent. My wife and I bought a condo south of Seattle in 1997 for $79,995.00. We put down 3K as we qualified for a first time homebuyer down payment. Since then with rolling that purchase 2 more times over the past 25 years, that initial 3K down payment is now about 410K in equity.
Economy has forced me to become a never ending traveler.
Because it's the only thing we can afford now? Or wdym by this
Van life my brothers!
When I was young Chris Farley had a whole skit about living in a van down by the river, and it was an obviously unacceptable situation.
Today, we are so enamored with capitalism that we glamorize living in vans rather than admit things aren’t working.
@@rundown132over the road trucking. You live in a 5x8 semi year round. Forget owning more than a few backpacks worth of stuff in the truck - everything else in storage
I wouldn’t mind the travel life as much if public transit was better and we had a higher frequency of hostels (with lockers big enough for 40L backpacks.) Traveling in Japan prior to 2020, my average hostel price per night was $30/day, which was cheaper than the average rent in my area then and now. Europe depends but it was still more affordable than most hotels in the US even with the currency exchange being higher.
We underestimate how valuable urban planners, designers, architects, etc are. The study of settlement patters and development is a huge aspect of the discipline which really makes you think bout the world in an entirely new way. I truly think you have to be very civically minded to effectively do your job.
13:15 that pie chart with shades of blue that look really similar made me laugh. After the camera zooms back, it's pretty hard to tell a couple of those apart lol
Wow, listening to this eloquent expert speak about the housing crisis/emergency and who's getting housing right, it's almost like access to housing shouldn't be subject to "financialization" and should be treated as a human right.
I've lived in historically black (redlined) neighborhoods at least four times in my life, and can see the appeal of them. First of all, since they're older neighborhoods, they're always on a public transportation line. They're also much more walkable than almost anywhere else in the city. And finally, I think it's just easier to talk to and meet people in them. You just go downstairs and talk to people. Do be sure to invest in a stout bicycle lock, although I've never had a bike stolen I have had a motorcycle stolen.
As for gentrification being bad, I dunno. Do you really want to pay $1500/month for rent or do you want to pay $350 for the same type of place? Or $500 for a full house? And I make my money elsewhere, and spend it (mostly) locally. That's gotta be good for sales and local taxes.
Although I now live in a highly white suburb (not my choice), I do prefer urban life. I find suburban people to be often really scared of, well, everything. It's an insidious form of paranoia that infects how people think, while ignoring the real dangers such as traffic wrecks, obesity, and social isolation.
Wow you did such a good job answering all the questions. Also combined with facts. One of the most well prepared QnA videos. Awesome job :)