What Happens To The Real Estate Market When All The Boomers... Die?
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- Опубліковано 1 січ 2024
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It doesn’t mean anything to be Working class or middle class anymore… The only thing that matters is if you own a home or if you don’t.
The home you live in now statistically makes more money than you do and the last hope that a lot of young people have to catch up is getting a house gifted to them by a relative... which begs the question. What happens to the real estate market when all the boomers… die?
There is an old saying that the best time to start investing was 30 years ago, the second-best time is right now. But that conventional wisdom might not hold up in today’s market. Buying a home at the right time could set you and family up for financial security for the rest of your life. The only thing is, the right time was when you were still in school and if you try to buy a home now you will be taking on record high interest rates, record high prices AND record low availability all at the same time… People sell homes for two reasons, because they want to and because they HAVE to. Nobody who already has a home WANTS to sell it because most Americans have been able to lock in record low interest rates. If they sell their house and buy another one, they will get a new mortgage at interest rates which will TRIPPLE their payments on a home of the same value. According to data from the national association of realtors, eighty-seven percent [87%] of new home purchases are made using a mortgage, and the average down payment of a first home buyer is only seven percent [7%]. This means higher mortgage rates are worth avoiding at all costs.
A report by the wall street journal found that even when homeowners moved interstate, they would hold on to their homes and rent them out and then rent another house to live in… Everybody that wants to sell their home is waiting for interest rates to fall. Everybody who wants to buy a home is also waiting for interest rates to fall. And everybody who is stuck renting is being forced to compete with people who already own a home but don’t want to sell it because they have locked in a sweet interest rate.
The players in the real estate market are in a Mexican standoff, but the renters are stuck fighting with a Banana. The only hope for people who just want to buy a home is to get it off someone who NEEDS to sell. According to another report published by the national association of realtors the average home seller in America was SIXTY!! [60] years old!
So it’s time to learn How Money Works to find out why you probably won’t benefit as much as you are hoping from the boomers passing down their homes…
Check out Revolut and get $10 using my link: www.revolut.com/en-US/promo/aff-10offerUS-hmw
Music is epic
wow your channel makes me nihilistic
Many retirees also plan to spend it all so no heritage for many. But they will die within the same decade but this will be only in around 20 years from now. So yeah at least 20 years to go so too late for everyone looking for a house now lol.
Communist Blocks have never seem so utopian...
Revolut lost my account information and have effectively locked me out of my investments and digital debit card. I signed up when they offered $50 for giving them a try then updated their app and I've been out ever since. And their customer service? 5 hours in online chat because phone calls are non existent and after consistently "disconnecting" I lost patience. Not sure what to do next but DO NOT RECOMMEND
My first financial mistake was being a sixth grader instead of buying a house. It has been an uphill battle ever since.
So dumb of you.
Lol these how the boomers expect us to move 😂 litteraly we have it harder statically then they ever DID.
Better start investing now with your lunch money
Yea no kidding, what were you thinking!
Boringggg everyone copy this sentence 🤷🏻♂️
It's like playing Monopoly. But everyone else has been playing for ten rounds already, all the properties are already sold and the the game board is on fire.
Not even "like", that's exactly what it is, the game had winners before most of us were born to be the losers, paying just to be on "their" squares.
In the UK version, everyone pays a little at the end of each turn for people who need hospital care. Also, the banker in this version does some money laundering and you can skip the income tax square if you have enough hotels.
Its almost like monopoly was made to replicate and criticise capitalism lmao
Exactly. And it pays to go to jail so that you aren't moving around the board landing on those expensive properties with hotels and being wiped out.
@@russellcr0w At least the UK version lets you use the hospital care you paid for without additional cost. In the American version people also pays a little at the end of each turn for people who need hospital care but only the poorest players can access it instead everyone else has to pay even more money for hospital care.
I love how we went from growing people told me I could do whatever I wanted if I worked hard enough to being grown working harder than we ever have and still not being able to do the most basic things like owning a home.
You're not working hard enough. You need to be pushing 170 hours a week.
My biggest financial mistake was being born.
Funny 😂
Bruh😂
Relatable
My dad and I had the same job in the same metro area. In 1969 he bought his first condo in the Los Angeles area for $16k and his annual income was about $12k. When I started the same Job in 2010, that same condo was worth $300k and my annual income was $65k. Today, it's worth over $420k and has similar mortgage interest rates as in 1969. I currently make around $110k a year and my father's income never went over $70k a year in his prime. To have the same purchasing power today, my income would need to be about $323k a year.
Wow, that's like complaining that I can't buy as much gold with my job today as I could have bought with the average job in 1969. Tell me more about your complete lack of understanding economics over time, please.
@SeanTheEvans woah! it's just a comparison between the same job and the same property but 50 years apart. Simply put, wages have been stagnant compared to housing costs so a larger percentage of people's income now goes to housing and the gap is only continuing to grow. I actually own a couple different properties with low interest rates so I'm definitely not complaining.
@@SeanTheEvans Way to completely misunderstand the example, Sean. But also you misunderstand your own example; you prove his point. You're looking at two baskets of goods and asking how many labor hours in the same job would be required to buy the same goods, in two different years. That's literally how economists do it. While ounces of gold alone is a terrible basket, housing alone is worthwhile.
Separately, you're an annoying little shit because of how you communicate. Stop it. Either stop being such an annoying little shit, or stop communicating. Either way is good for us.
@@mllenessmarie haha no worries lol thanks for the backup
My parents bought their first 3/1 house in Wichita, Kansas for $5k in 1955. Their combined annual income was $8k.
That house sold last year for $370k.
Law should be updated to make corporate home ownership illegal
they will NEVER do that. Remember these politicians are in office because these companies financed their campaign and give them money on the side
I agree. Homes as a corporate investment is ultimately a harm to the public.
I fully agree. The housing market is so crazy because most homes are owned by corporations. A 500 square foot home should not cost $700K!!!
Absolute Agreement!!!!
Edit: hopefully this will become a law, with the exception of distressed properties where the entity is at fault. For example; environmental contamination. Make it their responsibility to clean.
@@dennydude did you see the part of the video where it shows corporations were 13% of purchases in 2021. They own somewhere around 20-25% of overall supply
"Permanently exiting above-ground real-estate market" is the coldest and most polite phrase I have heard this week.
I lucked out. My aunt invested heavily in real estate during the 80s and 90s and owned several homes, she sold most and one of them she left to me after i was asked late past year how the place i was renting is and i told them that the new landlord was doubling the rent so id likely need to move back in with mom again at 30.
I'm immeasurably grateful for this and live is finally improving after 12 years of constant struggling to stay out of poverty, but the fact the real estate market is so fucked that only the ultra wealthy can buy a home is horrific. We need to treat housing as a product again, not an investment.
Youll be flip flopping harder than a politician in a moment because youll be mad when you buy a house and it goesnt go up in value like in ussr and north korea.
The fact that housing is considered an investment is one of the biggest issues. Limiting how many homes a person can own and getting investors out of the housing market should help normalize things but at this point, I'm just hoping for a Thanos snap
Worst part is alot of the time people dont actually really make that much money with their houses if they have not owned it for more than 15 years, and even there, its not a great profit margin compared to how much money you spent on maintain the home and fixing shit in it. Or when you go and renovate the kitchen or bathroom. But it does make equity which helps you get loans and your credit score....
Hauaahja try that in a comunist country
@@invertedv12powerhouse77 Then you do spend the time and money to acquire a house, fix it up, and try to resell or rent it, just to find out someone came in overnight to break in and steal the AC unit and copper wiring. Now you don't have the money for repairs and have sunken hundreds of thousands into a pointless venture.
@@pontoancora Just look at housing in Vienna, Austria which is a democratic country.
mortgages also really messed things up. today, prices are really set by banks and how much they are willing to lend out, so it is a game between banks, not buyers and sellers.
I love getting financial advice from a generation whose job hunting experience consists of walking into a place where they wanted to work, asking if that place had an available job, and getting hired on the spot.
Ask A Manager has a whole section on her website about 'showing moxie' and other terrible job-hunting advice (nowadays that kind of actions would get you blacklisted as a crazy stalker)
@@sd-ch2cq 😂😂😂
"It worked for me 56 years ago, you youngsters are just lazy" 😂
@@filteredjc4653 "I paid $11 a month for a 3 bedroom apartment and I assume it's still $11 a month now!"
I’m a millennial and this is actually exactly how I got a valuable paid internship in my field of study during college. You cry babies just suck at getting what you want 😂
I literally remember being 17 years old in the mid 90s in my old neighborhood... and I looked at at the plots of land, and the $90‚000-$150‚000 houses in the area wishing I could buy one.
My parents are boomers and had their house paid for by my grandparents in 1986 ($74,000 only).... And then had the gall to tell me how it was all them that got to where they are now - I nearly spat out my drink across the table! As an Accountant, I explained to them that forensically, roughly half was them and half was gifted from their parents, and they had to eat humble pie. Since then they have warmed to my Gen X plight of trying to get onto the property ladder, offering to help me with my housing. Half my effort and half my parents help sounds fair, generation to generation, yes?
This works only if your parents are less narcissistic/boomerish than the average ones
"Housing is so bad I'm going to have to live with my parents!"
Me: Wow... your parents have a house?
For real. My (divorced) parents are gen x and neither own a home. My dad rents, and my mom lives on her boomer parents' land.
@@TheTabascodragonand what about the kids of millennials and zoomers? I can't even imagine what they are/will be saying.
Yeah my friend's mother is like that, she moved into berlin where it was bombed to shit, and rent was so cheap there never was a reason to buy a home. Now she really wishes she did
@@yaelz6043
They'll be conscripted to fight WW3 and will live in appaling conditions in Barracks for 20 years before Nukes start flying
(The Nukes take so long to fly because everyone's pussy footing about and keep threatening to use them without actually doing so until someone finally says "to hell with this" and just gets it over and done with)
“Wow, your parents aren’t divorced?”
Can’t begin to tell you the amount of people that I’ve seen take care of their aging parents and sacrifice their own life, career and family, just to find out mom and dad had drained all of their money to fund their medical and living expenses. Leaving them with NOTHING. I work in banking so I see this almost on a weekly basis.
It's not a parent's job to leave their kids money. That's extremely selfish and self-serving to think your parents only exist to give you an inheritance. The parents worked and earned their money, and they obviously needed it to live on and survive. Why do kids think they're owed and entitled to their parent's money? If my parents left me absolutely no inheritance, I wouldn't care because I have my own job, and I'm smart with my finances. I care about and love my parents as people, not as cash cows.
@@heatherdisney Absolutely agree. What I was referring to was what he mentioned in the video: do not expect to receive any funds from your parents' estate. Was simply pointing out examples of how I see adults put their lives on stop to take care of aging parents, perhaps thinking that at least they will get some moneys when their parents pass. Latest case I saw was 2 sisters. One married with kids, the other one with no kids and unmarried. So of course, the responsibility of taking care of the aging parents fell on the unmarried one. 9 years later parents die, left 0 money for her due to having to use it all for medical expenses and living expenses (expected). That woman did nothing other than take care of her sick and aging parents until death, only to get the unfortunate news that her parents had even sold the house they were living in and actually died with debt. And trust me, this is more common than people realize. So as the video said, DO NOT expect to receive an inheritance. Most people deplete their funds prior to passing.
@@heatherdisney You made quite a bit of assumptions in that retort, no? Do you have a family? Do you want to give them a good life? Why is that? It's because you *want* to, not because you're expected to. The actual original point, is that it's really sad when a wealthy generation doesn't *want* to help their grandchildren, and somehow consider that virtuous.
@@heatherdisneyI mean you might care if you spent a whole decade caring for them instead of making money at a job only to be left with nothing. On the other hand you're probably going to just dump your parents at a nursing home and let them get whatever they can get with Medicare (which is basically a hell hole). 🤷
I've watched my parents spend well beyond their means their whole entitled lives in a frenzy of blind consumerism, buying sound bars and replacing perfectly good furniture every few years, or paying to have the gardens they can't even walk around too enjoy at 83 years old. I also see the HUNDREDS of thousands of dollars they're in debt from the continued awful spending practices. They're leaving their family nothing but debt and the stain of a life of selfishness. Boomers through and through.
My Grandpaw started working in the 50’s s on a few hundred bucks a month and went on to buy multiple pieces of property, build a house on one, retire by 62 with a pension and have a nest egg that has supported him into his 90’s with no bills. That dream is long since gone. I have to be happy with my job being just enough to pay the bills with a little bit squared away for a rainy day and a 401k that could get wiped out with the next bubble popping. It’s legit terrifying when I realized I make 30 times what he did.
I’ve never understood how a home can gain value as it ages when everything else on this planet depreciates, degrades, and becomes obsolete or outdated with time. This is a universal truth. So why does a car lose value but a house gains? You put an end to that bs concept of your used products gaining equity, and you’ve leveled the playing field immensely.
Homes do lose value with age - all else being equal, a new house will cost more than an old house, it's just that the general prices of real estate are going up so much that it overwhelms the price depreciation due to the house getting older.
Land is scarce
supply and demand. If everyone wants something, it becomes valuable.
The land that the house is on is valuable, and gets more valuable as the infrastructure/ community around it gets developed. Thats why
@@synaesthesia888 also the work people put into the homes, the land/property being cared for or neglected for decades is potential value too
adds salt to the wound that boomers don't realize how much more financially difficult we have it in modern times..
Being a boomer, I am perplexed where people are getting the idea we had it so easy. Being a woman, working before sexual harrassment and/or exploitation was against the law, being paid ,.65 cents for every dollar a man earned, never being promoted or given responsiblity because we MIGHT give birth - the only way a woman moved up in that world was marriage. Standing on your own two feet was dangerous and risky. When Rose Mcgowen started that MeToo movement I LMAO. Been having one my whole life.
@music4566 "Being a boomer, I am perplexed where people are getting the idea we had it so easy. "
It's because your dollars were literally worth more than ours.
To copy an easy example from above: "My dad and I had the same job in the same metro area. In 1969 he bought his first condo in the Los Angeles area for $16k and his annual income was about $12k. When I started the same Job in 2010, that same condo was worth $300k and my annual income was $65k."
You may have been making 0.65 per dollar, meaning 7.8k, compared to this guy's Dad, but if we take the 2010 example this guy would have been making 0.26 per dollar, or 3.2k.
Conditions haven't equalized upwards but downwards. We are all now proportionately more than twice as bad off as a woman in the 1960s-1970s.
Edit: After comparing median wages in 1970 for a man vs median housing cost, as well as both the general median wage currently and median housing cost, the true value is actually about 0.25 cents to the 1970s dollar.
Not true. We know it. I have spoken out for years about how much things cost today relative to what we made in wages as compared to today. We will work with your generation anyway we can to fix this mess. But your generation needs to focus on electing candidates who are interested in promoting the average Joe's economic interest and not a leftist social agenda just meant to divide us.
@marvelmusic4566 Honestly, go post your left wing rhetoric somewhere else. Back then an average man could work one job, to own a house, car, and raise a child.
Now both parents have to work to rent an apartment, lease a car, and have their children raised by the tv/the state. So seriously hope "equality" was worth all the B.S. cause now we're all suffering this socialist beauocracy you wrought upon us. Trump 2024. (I'm 30 and have to live in a fucking car!)
@@DavidSmith-fr1uz Only one dividing is the right. CRT wasnt an issue until the right wing talking heads latched onto it, despite being around since the 80s. "Woke" wasnt an issue until the right wing talking heads latched onto it despite being around since the 80s. Books that have been in schools for decades havent been an issue until the right wing talking heads latched onto it.
The only one pushing social agendas is the right. Going after settled law like Roe v Wade. Trying to outlaw LGBT+ people, etc. etc.
So go right ahead and blame "our generation", while yours continues to be short sighted, selfish, and racist.
Our greatest mistake was not buying homes when we were in elementary school. Our 2nd biggest mistake is that we aren't on the streets protesting these practices
I passed up buying a home for $150,000 when I was 14. Clearly I'm financially illiterate.
That the real quick
@@LonovavirWhat's your excuse? You didn't have money? Why? Should've been on the grind since day 1!!! Imagine living 14 years and have nothing.....
You should do like a horse and as soon as you hit the ground you start running!!! Or the hyenas and predators in the wild will catch you.
Instead of learning my abc I should’ve been learning the market
@@louistech112this is literally the stuff capitalists used to say in debates (on UA-cam) a few years ago
I love how real all of this is an the fact it demonstrates the main problem with housing, the profit incentive.
Everything is predicated on the newer generations coffing up more money for a home than the prior generation did and more houses so they can make money, leading to the current cost problem. Given this, we begin seeing the housing either bought out by large companies or kept by people to rent so they can make money, decreasing supply and further increasing prices.
Every decision was made because someone wanted money and not because people need houses, leaving use in our current state.
That any all other aspects of wage theft from coprations which are caused, again, by the proffit incentive.
sounds like a pyramid scheme
I’m so glad I bought my home when I did. I was able to do that because I never had kids, got married, took out student loans, or a car loan. I also lived in a warehouse/storage unit for two years to save up, and I went through a non profit that helps first time home owners.
My best advice is to put off having kids as the big corporations are FREAKING OUT over the birth rate decline.
They need to be deprived of new consumers in the system they created.
this is the correct answer.Kudos
They’ll just import more from the third world, make more kids before your over with.
They are importing new customers as we speak 😂
unless you're a woman, in which case you better have that house before you're 35 coz time is running out. I gave up waiting because I wanted a kid so badly and i was running out of time. Home ownership is so close for us, but the market and interests rates are too high so we wouldn't get approved even though we both earn a decent wage. Our renting situation and work situation are the best they've been, that aside, but we've had so much bad luck, I'm constantly worried about a layoff or if my landlady changes her mind or something randomly bad happening to us. But i'm not the only one who did this; I know a gen xer who had her kids before owning a home and they finally managed it at 45 - she is very glad she didn't wait because it would have been too late. If you're a man, you got all the time in the world, if you're a woman and you know you want kids, you just don't have the luxury of time. A house can be bought any time.
They will be deprived of nothing. Pay attention. Estimates as high as 20-30 million illegal aliens in the last 4 years. I've personally seen school buses full of Mexicans from Mexico pull up to gas stations. They get back on the road and head further north, and I'm already up north
America is gone. We stand for nothing but corporations bottom lines now. Dark days ahead
My dad's actually running into this problem. He'd like to sell his Salt Waterfront home with acreage and a dock, but, there's only one problem:
The only people who can afford it are Boomers and older (I'M a Boomer!), and _they already have their dream houses in the woods._
I think this is why selling is on hold, despite homeowners listing their homes. Only companies can afford to buy
You are a boomer but you have a dad ?
How old is he ?
@@LSMH528Hz How many keys are on a piano?
Depends on what type of piano@@TimeSurfer206
3 < year’s difference for mine
I was talking to a boomer who owns a half a million dollar house telling them I couldn't afford a house and their response? Money isn't everything... it was then I realised they don't care about you, they don't care about anyone but themselves, and they wouldn't care if you were homeless either, they'd probably respond with you reap what you sow, they may still love you but they just don't care.
That is such a boomer response!
One boomer parent response was "live within your means and file for bankcruptcy." Because having no credit for 7 years is how you prosper. One actually helped me when I had emergencies and paid for my health insurance until I turned 26.
"Money isnt everything"
No,when you have enough it isnt , but when you have barely any it is.
What did you expect as a grown mature adult? He is retired and won the prize, it’s your turn now.
@@bulbigood6558 You just don't get it, the same house bought in the 80's for $100k is now worth millions, omg see everyone this is proof you can't argue with a boomer lol
end house hoarding! end rent gouging! this is a crime committed by banks and real estate owners against humanity! shelter is a human right!
As a realtor, I would rank the inability to climb stairs over nursing home costs for the average age of sellers being 60. Most 60 year olds don’t need to head straight to a nursing home. I re-home lots of seniors to condos and ranch houses
As someone who has worked in the retirement housing community I find it hilarious to hear my fellow millennials talk about how they will have to wait to retire or get a house when their parents finally die. I cannot count the number of times I have watched boomers drain their savings to live 5 years long all the while leaving their kids nothing. I would bet most, if not all, of the boomer's wealth in any form is going to medical expenses, care and retirement housing. Boomers inherited the greatest wealth a generation has ever built and given that they are some of the most shellfish and spoiled people in our history, they would rather bury themselves in gold than give it to their kids.
Yeah... I find it strange that they want "independence" from their kids and would rather stay in a nursing home
Yeah, people underestimate the cost of someone's final years. Between finally being able to spend their cash on luxiries, no longer having an income, potentially paying for extremely high living costs (if it's assisted living), and then the final medical bill prior to death? You'd better hope mom and dad were sitting on a couple mil if you're hoping to get anything worth writing home about.
It's their money though if someone wants to spend that money on their own health and wellbeing then they should. People should not expect their parents to bail them out all the time especially financially.
My family's poor so I never expected any inheritance so I worked my ass off and saved and bought a cheap house in a rough area, after 5 years I'd made the house look more modern and made a bit of money on it and now I'm in a slightly better house in a slightly better area. I think everyone these days wants their dream house straight away and expects everything. Much like climbing the corporate ladder I climbed the housing ladder. The alternative was going out every weekend spending money, and renting in a nice area. So it's up to you what you are willing to sacrifice to get there
@@thenoodlebuddy Great job putting the blame of a systemic problem on individuals and using your luck-based personal experience as a way to feel morally superior to others (it's luck-based because a market crash would've put you in the hole and you have zero control over that). You sound like one of those boomers that say millennials need to stop buying avocado toast to be able to keep up with housing prices that doubled (!!!) in just a few fucking years. You benefited from a broken system, congratulations. The system is still broken, and you thinking that your benefiting from it means the system is working fine, is yet another example of how brainwashed people in this country are.
@@thepracticalblade9013 normally a functioning healthcare insurance system where everyone paid into before they got old would catch that burden. At least in my country that issue doesn't exist
You missed a big issue: healthcare expenses. A lot of people will die in the hospital or long term care facility. Their estates will be pulverized by these expenses before they get close to the heirs.
Which, interestingly enough, is precisely the reason why European and Scandinavian countries don't have this issue nearly as much. Yes, you pay higher taxes but health care costs don't eat everything you own by the time you die.
Even in Canada, you go into govt. care and basically the agency grabs your pension, any liquid assets, and you're done.
I mean he did mention nursing homes and assisted living which is where a lot of the cost will go. Any acute care in the hospital would likely be covered by Medicare, but if you don't want to rot in living hell you'll need to sell your home to pay for good long term care.😮
@@jessicaolson490 he did say those things, but not the things I mentioned. Hmm, perhaps there is a reason they are brought up separately. 🤔
@@user-zp7jp1vk2i This is why it's best to divest long enough before that these assets won't be seized by creditors. Obvs you can't do anything about the pension.
The cost of housing for the elderly, assisted living in particular, was a buried headline in this video...and a great topic for another one.
When all the boomers die, equity firms will buy up all these properties, or as many as they can, and rent/lease/airbnb them out to whoever or just let them sit until they fall apart. Just my opinion.
That's exactly what will happen.
My step-father died in "his" house having never paid it off with less than $10K in his account. When his daughter came to claim her inheritance, all she received were his unpaid bills.
Yeah, they have to put it in a trust otherwise it will get destroyed by debt collectors and taxes
This is pretty much the boomer generation in a nutshell. They made a shit ton of money in their lives, but they were the party generation, the first credit card generation. Everything they made they spent already.
@@notmyrealname3167 Because society preyed on them, just like it does on us. Don't blame the victims. Every leech out there is trying to beat you to your parent's money.
While that may be true, she also interrited the equity that he had in the house. That should be hundreds of thousands. Not all boomers were good with money though.
😵
The fact that corporate entities CAN buy houses is insane. Single family homes are designed for FAMILIES,and giving power to entities to buy them is crazy. This is literally giving profits to companies who can induce demand as much as they want, since it appreciates. You mentioned "only" 13% of sales were to corporations, but that means 1 in 10 are purchased by them. This means in a 20 home neighborhood on market, at lwast 2 are corporate owned, which is INSANE
Private family ownership is literally the cause of our housing shortage. Ordinary people have most of their wealth tied up into their house, and housing shortages cause the price of that home - and thus their personal net worth - to skyrocket. Resolving the housing crisis means that ordinary people will see most of their wealth vanish, as their single biggest investment drops in value. Corporations don't have anywhere near the government power that an army of middle class homeowners possesses.
In addition, once a home becomes part of a portfolio, it's never sold to family agsin.... Ever! So that 13% compounds year over year, pulling more homes PERMANENTLY off the market.
It’s not just corporate buyers. Commodifying essential resources is bad for everyone.
@@Nun195Essential resources have always been commodities. There are records of cost of living complaints in Rome when it was an empire.
They finally managed to turn society into an actual game of monopoly. Well, I feel like this is not the first time, and it won’t be the last. Only thing needed is for the politicians to make the rules such that this madness ends. Someone will get hurt, but now it’s the majority that’s hurting.
The final battles of the Cold War were economic, not nuclear like everyone expected.
The apocalypse we're living through is much the same. It's not a zombie virus, an alien invasion, or an epic clash between the forces of light and dark.
It's a slow death by economic attrition.
The apocalypse sucks.
I sometimes felt a little guilty that a "happy thought" entered my mind during the pandemic that many old people were dying, just for the houses to get available and their "boomer influence" to end... :O I know it was a horrible thought, but it tells me just how bad the (housing) crisis is right now.
Keys to a successful life...
1) Have 15 years of experience in the field that you just graduated from
2) make sure to put the down payment on your future house by time you're in sixth grade
🤦♂️🤣
or just study something that there’s demand in lol
@@tropinnkaand then find out you weren’t the only one with the same idea and enter an incredibly saturated industry
@@tropinnka Or get some issue requiring any kind of extensive medical service and find out you now have a mountain of medical debt on top of your student loans.
Genghis Khan: "With money, you can buy a little power. But with power, you can have all the money."
Your decadence has caught up with you. How dare you not own your own house in 6th grade. Your laziness is destroying the economy.
It's ironic that the people who need to own their own home the most (families with kids) are the least likely to own it. Things need to change.
Can't do it with capitalism
Yeah, better this than starving to death @
The right to have children isn’t earned, much less by having money. you are a deeply inhuman person
The system is rotten to the core my friend. The fun thing is, it's starting to resemble more what ultimately lead to the french revolution. I believe the system will remain rotten until there is a breaking point, leading to heads rolling down.
Skill issue, Samuel.
Ive seen at least 5 new residential development going up around me in the last year or two. All of them are apartments or townhomes for rent. And the condos they build in town? Bought up, and then rented out. The economy doesnt want you to own, it wabts you to rent.
The biggest problem is that there are no homes available and neither can you build new without jumping through ridiculous hoops.
Put an end to single family restricted zoning and minimum square footage requirements at the federal level and most of the current problems in the housing market would disappear overnight. Apartments and small affordable 1st buyer friendly homes would literally start sprouting from the ground.
I remember learning in a class on Chinese history, that over time they would have a problematic economic cycle. Some farmers would get just wealthy enough to buy a neighbor's land, and hire poor farmers to work it. And they would begin accumulating wealth, and continue gathering assets. Until eventually a few wealthy families owned everything and they made life difficult enough for the poor, that the poor rose up and rebelled, and killed and scattered the wealthy families, and redistributed the wealth. It required intense inequality and great suffering before people were willing to do this. Much worse than we are experiencing now. Anyway, that new situation with many self-sufficient farmers would go along until some of them started buying up their neighbors' land ...
I keep thinking back on that. I think oligarchs worldwide and definitely in America have been in a position to control things and grow richer for a long time. And part of absorbing wealth is extracting it from the poor and middle class. But because there's no grand conspiracy that could maintain the status quo, they can't coordinate. So they take too much, grow too rich. Which is a bad administration policy, because it creates instability over time, as I described with the Chinese history example.
Exactly. Revolution is what happens when people are pushed too far. It's not some great glorious moment of liberation, it's the endgame of a long nightmare.
What I see from a big picture is as America and the FED prints more and more funny money, what happens is core inflation doesn't rise that much because of the Eurodollar system and the USD's reserve currency status. BUT as more dollars are created, those dollars have to go somewhere, because if they entered circulation general consumer price inflation would be insane. And investment assets are the ones that are soaking up the excess money influx. And housing has become an investment asset.
So basically the FED prints money and dumps it into the economy, and the investment firms have devised all sorts of methods to siphon off all that excess dumped money out of the economy for themselves. This makes the slice of the pie that is part of the circulation of the economy stay pretty much the same in absolute value, but the entire pie around it is growing at an exponential rate. Money is funneled from the government, through the middle/working class into the private equity firms.
Your solution does not solve the problem. After the poor workers revolt, they acquire stuff and the cycle repeats. You could ban private property, but then that just moves wealth to the state which is also made up of a smaller group of people who control everything.
So basically it's human destiny to have both poor and rich people.
You think that rebellion in China worked out? Did you leave out the part where most of them starved to death? Or how about the part where it basically reverted back to the same situation where most of the wealth belongs to a hand full of rich people?
@@tripplefives1402 It's not human destiny to end up divided between rich and poor. It is the destiny of the any capitalist system, it is intentional and by design. The reason those cycles continued is because capitalism was allowed to continue, not "because humans".
@@tripplefives1402maybe if instead of the state having it... We let the people who work on it control it themselves? And allow the government to break up monopolies when they do form?
😔 Ten years ago I tried to buy a townhouse. It was selling undervalued at $90K. The builder wanted to sell more units, by truthfully saying all the units previously made were already sold.
My accountant was a friend of my father, from prep school. He refused to give me the $18K of my own money for the down payment. He claimed that I needed the money in my retirement accounts more than a mortgage.
Those townhouses are now valued at $300K-$400k depending on # of bedrooms and bathrooms.
I still live as a renter.
😔 venting over.
It’s YOUR money. You could have served him with a lawsuit and then moved it to a new account.
That wasn’t your money then
I presume that by "your money", you mean your trust money. If it's really your money, you can do whatever the fork you want to do with it.
He was your accountant not your investment manager no? Is there that distinction in the USA?
its not up to your accountant, its your money, this is either a lie, or you are the most pathetic human on the fact of the earth.
I remember being in 8th grade and having a teacher tell us that studying hard would prevent us from having to live in a can down by the river. Now, every single one of my friends would feel like being able to have a van to live in would be an absolute luxury.
My fiancé and I got a house during the pandemic when interest dates were ridiculously low. We ended up around 3%. Most of the older folks we know have had rates of 7%+, including one neighbor who at one point said he had a rate of 11%. Both of us are in jobs where we make entry level money. The only reason we could get a house is his good planning; he bought the house without my help. You don't have to put 20% down. Saving 5%-10% isn't that difficult if you're careful.
My biggest mistake was getting myself born too late. As a go getting egg cell, I should have pulled myself up by the bootstraps and directly negotiated with my father the rights to my remaining 23 chromosomes. I then could have self fertilized myself and climbed out of my mom’s birth canal 10 years sooner, enabling me to immediately start my PhD at Stanford.
Your PhD would have taken most the earnings you would have used for an investment into housing.
Stop blaming yourself and start blaming your parents
If you weren't born rich, just give up and accept that you'll probably be on welfare and/or homeless for the rest of your life.
Pretty sure they don't make shoes in sizes for zygotes.
@timothy8428
Maybe not but according to all the boomers I’ve talked to, not having shoes is a whiny millennial problem. Back in their day, they had to walk up hill both ways and reproduce by parthenogenesis.
This could be easily fixed if there was a law that allows corporate entities to only build new homes, but not buy existing ones. That way if companies want to own homes for speculation or rent then they have to go and build new ones, which not only directs investments to be used to expand the housing market rather than eating it up, but also protects families so they would not have to compete with companies to buy existing homes which should in time normalize prices. Also, in order to prevent companies from using a loophole where they buy housing in their personal name or through relatives, it would be a good idea to limit private individuals to owning a maximum of two or three homes too. If a critical ressource is limited, then laws must reflect that.
yes this is exactly what I have been saying, all these people saying we should ban investments firms and such from buying single family property of any type, just like the logging industry, if your gonna cut a tree down you gotta replace it, though this would be in reverse, if you wanna sell a home you gotta build it
Too bad the politicians all have a large working stake in real estate for this exact reason.......
The issue there is that we would have no trees anymore. They would build even where they shouldn’t, and would likely continue to build massive cookie cutter developments dozens of miles out from any commercial zones.
@ST-zm3lm if they can't sell it, why would they do that, also that's not how lumber industry works, they by law have to plant more or an equal amount to what they harvest
@@loosemoose5217 I’m more so referring to all of the woodlands they clear out. Much like the ones they decimated in my hometown when they built several square miles of cookie cutter houses
I think a huge way to combat this would be to enact laws that limit how many residential homes a person can own (including corporations since they are “people” after all).
Of course passing laws like this would absolutely scare the SHIT out of people who own all these properties in the first place. It would effectively wipe out non-liquid equitable wealth for these 1% people overnight, and they’d be forced to sell at a lower value or risk having their properties seized by the government enforcing said laws.
But it would actually allow for the rest of the working population to actually be able to afford homes. Granted they’d be subjected to the same residential ownership cap as the wealthier folks, but l guarantee you these people would not care and would just be happy to have a home.
It would essentially be a giant redistribution of wealth. If you think this is a law you’d like to push, be prepared for some incredibly cutthroat pushback from the people who own these properties. Companies like Zillow would essentially dissolve. There’d be a TON of propaganda funded by wealthy investors to convince the populace that this would destroy the economy (spoilers: it won’t. It will affect THEIR pockets, but it will absolutely help YOURS).
Wait if corporations, are people, dont they have the right to vote? Good thing you are full of it, and have no clue what you are talking about, or the ramifications of your crazy ideas
@@danielshchyokin3047 “Corporations are people” is the current law of the land after the Citizens United Supreme Court case. That wasn’t the commenters personal opinion
@@danielshchyokin3047 found the landlord)
I used to live in Chicago where my rent was $2800 a month before utilities. I couldn’t find any other place to live in Chicago that didn’t cost just as much or more to stay. But then I had the idea to move outside of Chicago because I can do my job remotely now. I found a six bedroom duplex and bought it for $30,000. I put $22,000 into it and renovated it into a Four large bedroom home. It’s beautiful and I love it. You just have to look.
You know what's absolutely disgusting about it? That it's regarding the housing - the basic necessity for everyone. You can get by without owning a car, without going on holidays, without owning some items etc, but everyone needs to have a place to live somewhere. A while ago there was a small documentary on YT about housing situation - or rather a crisis - in Hong Kong; people there lived in such small space it was appalling. And someone may say, well it's just one city that is expensive. Well, no, that's just the beginning of how high density places will look like if the population won't stop rising, there won't be decentralization of population and the housing pricing will not stop.
There is too many people
@@cyndlehick9777There are more houses than people in the united states lol
@@cyndlehick9777 Now you know what the vaccines were really for.
Sleeping in your car has become a nice alternative
You had me at “Older generations permanently exiting the above-ground real estate market” 😅
Nothing like some grim humor to brighten the mood. It's the financial version of Bond one liners.
It does touch on another issue.
Graves will be unaffordable for X onward
@@sneezyfido That is deeply unsettling to think about. Imagine a 80 year old in 2103, living in a run-down nursing home cuz they couldn't afford a better nursing home and has no kids cuz they couldn't afford them or focused too much on their career, so no one to visit them. When that person dies, their lifeless body is just dumped because they couldn't afford a grave..........man, thats unsettling as fuck.
@@viskyboi1275Well, it will begin with the boomers tho, since their kids are the ones (not) paying their funeral.
@@viskyboi1275 yeaaa, honestly it's depressing imagine that this is the destiny for all Americans, and the government will do jackshit since they can just import cheap labor to keep slaves on the market working to sustain this shit
As uncaring as this sounds it was a relief for me when my parents sat me down a few years ago and told me in no uncertain terms that if they ever became enfebbel and unable to provide for themselves to the point that they would either have to give up living it becomes a financial burden to any of their kids that they wanted to be allowed to pay themselves down on their own terms. We explored a lot of the name of this but it means that neither me nor my family will have to take on the burden of taking care of them in this day and age. I want that for my children too.
I predicted that we would see a rise in cyberpunk feudalism, in which large corporations buy up and own most of the houses, and that most people would rent from a large corporate landlord company. I did not expect this prediction to come true so soon. I am getting a taste of it by renting a place to live while our own house undergoes remodeling. It is today what I thought it would be maybe fifteen to twenty years from now.
The nursing home issue is even a bigger issue for the economy. But everyone seems to think that they won't need it, or be affected by it... That is the really scary part... You can't take care of your parents while working... I know a young lady who sold her house to take care of her mother until care assistance became available...
Glad where i live the government pays you to take care of your parents. So i will take care of my mother because my sister is making bank as a lawyer right now. That will save our inheritance as i don't want my mother to spend her millions on nursing homes that money should go to us the kids which is money that will be needed as everything is so expensive.
Nursing homes are predators.
@@bobby5678-ck2tc My dad left his mother in a nursing home. Moved her to another nursing home after she was treated poorly. I don't know what happened later, but that probably ate up a lot of family resources... The hospital probably hastened my mother's problem due to lack of exercise... But I just had a lower end job... And they didn't keep track of her care eligibility...
When the market crashed in 2008 my parents had enough money saved up to give me the down payment on a house. I had just graduated college and was homeless, crashing on various friends' couches and in my car, because I didn't have enough money to do the first month/last month/security deposit on an apartment. They always said they would give their kids a monetary gift for either a wedding or house and since I don't care about fancy weddings I took the house. It's wild to go from homeless to home owner at only 23. But I got incredibly lucky because there's no way I would have been able to buy a house if it wasn't for the perfect timing of super low prices and interest rates, my parents already having the money saved, and me not being locked into an apartment lease.
"The american dream"
Its a blessing for sure
I was an early age home owner as well (20). It wasn’t my parents, but my grandma did the same thing with me (wedding or down payment). I didn’t want a crazy wedding, so opted for down payment.
That decision was the single most impactful one I have ever made. I ended up selling that house back in 2020 and was able to pay cash for the home that my husband I now live in with our dogs and daughter. We’re 32, live in a decent home (4 beds/2 baths) with a backyard for dogs and garden. If I had NOT done the down payment option, and instead chose wedding…my life would be totally different. I’d probably be renting with no kids and no dogs. Definitely wouldn’t have the security we are lucky enough to have now.
The next crash will take that home from you. It all depends on what the REAL OWNERS, the corporations, in the USA decide YOUR FATE WITH!
This shit is wild. A lot of privilege here. I am 31 and bought my first house (a fixer upper) while in college when I was 23 and GF was 21. Took every penny and we ate frozen meals for a long while on makeshift furniture because we couldn't afford it. Absolutely no help from either of our single parents. In a lot of cases we helped them. Drove a beater 1991 chevy truck (crazy liability) to college and worked as an intern and GF worked as a waiter (also went to school). Really crazy and great years.
It is a completely foreign concept to me when I hear peoples' families just giving them things or they receive inheritance. It's really hard to not be frustrated when I hear these stories as well. Like some people being rewarded for simply existing.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
One strategy for protecting against a recession is to buy equities. Investors, especially during a recession, need to know where and how to put money in order to make money while avoiding inflation.
It has never been easier to understand how to build your money than it is right now, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investtments, in my opinion, are complex.
Working with a Financial Advisor to help guide you on your wealth-building journey if you're just starting out is a wonderful way to get started and thats how i was able to accrued good gains . They helps to manage investment overall risk profile , prevent permanent loss of capital consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
Credits to 'Carol Vivian Constable' she has a web presence, so you can simply
Just what I needed this morning, more reasons for self deletion.
My friend was recently talking about wanting to buy a house near her job in Seattle. She's an aerospace engineer working for a startup, 26 years old with a $130,000 salary. She was really excited to start looking in the area until she realized that an 800 sq ft home around there would set you back half a million fucking dollars.
Awful area. Tell her to live in a van and get tf outta Seattle as soon as she has enough experience
Half a million? That will get you a shack in Tacoma
That's not bad, you can live comfortably on 30k year, and pay it off in 5 years.
@@IrvineTheHunter "You can live comfortably on 30k a year."
Not in Seattle you can't!
Tell her to come further north to Vancouver a single family home is almost 1.2 million, that’s 900k in American dollars. That should make her feel better
Should have purchased that house when I was six years old DARN IT!
Right?! If only you worked harder when you were 3 years old! Stop being lazy! /s
I bought a house when I was six...
.
.
.
...playing Monopoly :)
Me too, I passed up a sweet dish of a deal at 14, $150,000 for a home. Foolish me.
"When I was 9 years old I walked to school 20 miles uphill on one foot, my other foot was starting a business" - Stevens He´s Dad
I should have bought one before I was even conceived!
I'm pretty sure half the problem would be solved if government didn't have so many buildings regulations & special interest groups didn't keep suing building developers for random reasons.
In CA, many developers get sued over "environmental protection" reasons. But in several cases, there was no indication that preventing housing stopped the decline of a soecies or habitat (so do, thats understandable, but I'm talking about the ones that don't).
There are folks trying to build new homes, but lawsuits & government regulations drive up the prices or stop the construction.
One thing that would help America is spreading the wealth of the country out over the entire lower 48 states. So much wealth is concentrated in so few areas that people are forced to move to those areas. A person can buy 50K houses all day long in America but no one wants to live in economically depressed areas. There are cities giving houses away if only the taxes are paid on them. Abandoned houses are everywhere in America.
As you said they are abandoned for a reason. If you buy the houses then bring industry to a town, it thrives. I know multinational call centres that literally bought towns so their workers had somewhere to live. Company towns are a thing. It complex but not impossible
That's why remote work was such a good deal. But now a lot of companies are getting rid of it.
Free market translation: "Eventually everything will be sucked up by huge black hole corporations. Amazon will happily assist you by renting you a 10x10 room for half your salary of your 12/7 job".
Then that's not a free market, is it?
@@LG-pt5kt A truly free market will inevitably be dominated by monopolies, because they have the resources to crush competitors. These lessons were learned in blood, but every new generation drinks the rich's trickle-down kool-aid.
@@LG-pt5kt Oh, but it is.
@@LG-pt5kt Yes it is rofl, what else would it be.
Capitalism is not market anarchism. We've never actually lived under a free market. Property owners have always been able to embezzle money from the state through "public services" that they predominantly benefit from(most notably, police, who protect their property but do nothing for the average person).
I'm in the category of being the child supporting my parents. I'm 24, have only had a full time job for 2 years paying 50k a year (before taxes), and I'm the primary income source in my household. My mom is shit at finance and my dad is a deadbeat. It's so frustrating knowing how much better I could be doing if I didn't have to parent my own parents.
And then my dad has the gall to say I should try to buy a house.... Infuriating lmao
Similar but possibly worse boat, 24, had to get a job when the breadwinner died 6 months out of high school. Take care of remaining parent with half that salary (dead end job) and their disability benefits. It's rough.
It's not funny
It's funny seeing so many comments on here from guys making over 100K/year, as though that's normal. Most of us are stuck making 40-60k even in "richer" states. Which is just how it works when you have a stratified society. Everyone isn't going to make the top money, but to them apparently that means only they deserve to live and we're supposed to struggle, even at the median income. It's insane. Add to that the care of aging parents and possibly kids, idk how anyone doesn't implode from the pressure. But, you know, bootstraps, bootstraps!
insist they add you onto the deed if you are paying the mortgage
INSIST
Why are you doing that? They are grown adults making adult decisions to be self-destructive. You as their child won’t convince them the change their money habits. Expect this to continue until they pass.
My current plan is to buy a piece of land in the middle of nowhere, plop a double wide on it, install a septic tank, solar panels, backup batteries, backup diesel generators, and a water well. Fortress of solitude
I went the other route in 2022 Bought an acre and a half. Put a new manufactured home on the property. Now we pay 2100 a month for mortgage, property tax and insurance. The 300k we have invested here would have bought us much more 5 years ago. I was regretting buying in 2021 but it was pay 2100 for a 2000sq foot home or 2100 for a two bedroom apartment. I picked the lease of two evils and I’m glad I did. We are blessed and extremely lucky. My advice to any one in their late 20s or early 30s is to buy a camper. Live in it until you have saved enough money. By then interest rates should come back down. Then buy the home you want. I didn’t buy my first home until I was 32.
I was 43.
I was able to buy a home last year, but it was at the top of our budget (200k) for a tiny 100 year old house with a mold problem and a lot of needed TLC. When I was a kid, I thought my life would be easier if I put in more work than anyone around me. Now I'm just a burnt out 26 year old getting a barely functional house to stay ahead of rising rent. What is the point in trying to achieve anything?
Bro Im about to turn 26 and don't know what I'd do if I didn't live rent free with my grandparents on property they own. Going to go back to school while I still have it so good.
Exactly! That is why I've decided to stop trying so hard.
Do you think 18 year olds back then were buying mansions in Martha’s vineyard? Most people bought shit houses back in the day, in fact a big reason for why housing does cost more is because relatively, housing on average is much better and a lot nicer and a lot bigger.
And what have you done to change your financial situation? Have you networked with successful people or groups? Studied finance to find different ways to save money on taxes or invest properly? Found the niche in your industry to learn and attack to get a step up on others to get some real money?
When people tell you to “work hard” a lot immediately think just grinding out at work, which is false. The real hard shit is doing things you’re uncomfortable with like the above mentioned skills. It’s taking big risks for the huge reward
@@Bbrosvideos I've aggressively pursued new jobs to the point I'm making $30 an hour plus overtime as well as reduced debt to avoid monthly payments as well as basically any fun or frivolous spending. The cost to buy a house isn't proportionate at all to what it once was, and if you think it is I don't really know what to say. I bought a 700 square foot 100 year old house for the price of a 2 bed 2 bath in the same area 5 years ago.
It isn't realistic for the average person to buy a home anymore. I'm more successful than most of my peers and I just barely managed to get a house after years of 60 hour work weeks.
@@alextupa5573 and the homes today are considerably better than they were back in the day. Where this delusional outlook that they were getting 5 star homes for $80k is laughable. The cheap houses back in the day were exactly that, small cheap shit houses.
And it’s unfortunate for those not born with a silver spoon, but it is still manageable to make it big. It just sucks ass to do so.
Also it’s funny you mention a 60 hour work week like it’s this crazy thing like people back in the 60s were working 20 hours a week while making bank. Life was considerably harder back in the day than it is now. Sure it peaked around the late 90s, but that was just a brief thing.
Homes will be affordable again sometime relatively soon because quite frankly they can’t afford not to
Hmm, it’s almost like the state should regulate home purchases by non-individuals
I'm as free market libertarian as they come, and even I agree that having a handful of companies owning a sizable percentage of the country's housing is crazy.
Too bad your rent is paying for the lobbyists that will keep it legal though.
Why? Why in god’s name are you a free market libertarian? You see the unbelievable unfairness and suffering caused by your ideology and you don’t introspect at all? You just stick to it?
@@thegenericguy8309 That's justice, I guess.
@@thegenericguy8309 Because things were even worse without a free market.
@@NotKimiRaikkonen LOL, free market libertarian "thinking" is why 3 people own more wealth than 50% of the country now.
It’s funny how since 2008 there has been a constant drum beat of experts telling young people to not buy real estate.
2008 scared a lot of people away from the real estate market… the event confirmed their belief that the real estate market was overvalued…
im a former care taker at an old folks home. I quit last month because they had me working 3rds ALONE with 30 residents!! It's a matter of life and death for these people and I'm just one man. Not to mention conditions for these folk were horrific as you could imagine
A lot of the houses go to reverse mortgage owners. The money they hoped you would inherit goes to the hedge funds that own hospitals and nursing homes.
Yup. I'm seeing a lot of reverse mortgage advertisements in printed newspapers and other old-people media, it is obviously a thriving market.
But the design and wording of the ads also shows how much shame there is around the practice: it's all kept very discrete and low-key.
Just because your (grand)parents still live in their home doesn't mean they still own it. There will be a bad surprise for a whole lot of young people who figured they'd only needed to hang on in the crazy housing-market until grandma kicked the bucket.
Exactly. I see it all the time with elderly people. I'm an insurance adjuster, and when I issue a check for a property claim the mortgage company is also on that check. After a while, you get to notice those "mortgage" companies that aren't major banks or credit unions that you've never heard of are actually just reverse mortgage companies. I got bored and googled them lol
You'll be old yourself if you're relying on inheritance. Most young people need a home NOW so they can raise their own families.
I AM SO LUCKY my grandmother just died on the toilet and didn't get the chance to waste my inheritance on futile medical care. It's a huge problem that inheritances are being squandered to extend lives mere months with expensive medicine.
I'm surprised he didn't talk about inventory destruction/ghost houses, because we have a lot of that going on too, just not in the way traditional inventory destruction is done.
Leaving aside natural disasters that were so bad people just don't bother rebuilding, companies are engaging in inventory destruction of housing. It's one of the reasons, despite massive uptick in building in the last two years we still have rock bottom inventory (that even without inventory destruction still wouldn't be enough, unfortunately). Unlike when Amazon dumps a bunch of stock in the garbage, housing inventory destruction looks a little different. A company buys a house, or condo, or townhome - basically anything that qualifies as single family housing - and then leaves it empty. They don't rent it (short or long term), nobody lives in it. This restricts the rental and homeowning options, to drive up prices. Higher asset prices means they can take out larger loans against the asset, and demand higher rents from the units they do happen to be renting. (It's rare for a company to ghost house *all* their housing stock. Just 15-20% of it.) Depending on the locale, 7-20% of housing in a city is ghost housing / destroyed inventory.
Can see this on the street in my own neighborhood even though we're in the middle of a housing crisis: I have *no* direct neighbors because companies bought those houses, and they've been empty ever since. The one across the street has been empty for 7 years. When I was trying to buy a house in 2019/2020 it was a pretty common selling point that I wouldn't have noisy neighbors on the condo floor or down the street, because the units/houses were corporate owned and I'd be *alone* in my neighborhood. It's not a new practice.
Oy, where you live, most states have squatters rights laws. If I can last 7 years, I can have a house lol
Damn bruh how this shit not illegal yet?
This sounds like bullshit. What possible benefit would they get from it?
Pick the locks, change the locks, rent them out as air bnb
Well that’s disgustingly greedy
It's no longer unrealistic to assume that they just want all poor people in jail so that they can force us to work in the prison system for free/ slave wages.
The fact that they're criminalizing being homeless and allowing slave labor in the prison system says it all.
I'm assuming with these cities and bonkers and exploration of space, the rest of us will probably be left behind.... If we just let it happen.
That rdr2 scene where u get to buy property and build a house gets me so emotional
We need to actually ban private equity from purchasing multiple homes and renting them out.
lmfao, you literally cant. dont speak on things you dont understand, it makes you look really dumb
It's almost like the system is against us or something 💀💀💀
Ban real estate investors all together. No reason why investors need to own 20+ homes.
@@NotSure416 maybe there is no need to ban anything, but just tax the s**t out of any property beyond the 3rd (proceeding incrementally) to make it a far less appealing investment.
@@ROMANTIKILLER2 Maybe, but the risk is that investors will just pass the costs onto the tenants.
My grandparents are giving me their home and while I don't live in it yet I can't help but feel guilty when some of my friends tell me that every single month is a struggle to not be homeless due to the rising cost of everything, especially rent.
I feel the same way. I don't have a house nor is my family giving me one, but my in-laws were nice enough to let us stay at their house and pay cheap rent while we save up for our own place. It's hard hearing about my friends struggling to get by
Don’t feel guilty. Feel proud that your family still has values and cares about future generations. I’d give anything for my boomer parents to care about their grandchildren.
Simple. Don't be friends with peasants. They will just drag you down.
I'm renting from my mom for well below market rates. I know the feeling.
It is what it is; just be grateful for your fortunate situation and make the best of it. Lots of people are completely shit out of luck and that's the world we live in.
Home ownership is highly overrated. I own two single family homes (one rental and one primary residence). I pay 10k for property tax for my primary residence and 5k in property tax for my rental. For my primary residence I pay about 3k for repairs, 1k for insurance and probably 2k for maintenance every year. I have similar repair costs and insurance costs for my rental. Luckily, no HOA fees or condo fees. But, these in combination with a mortgage are very expensive. Also, plumbers, electricians and HVAC techs easily charge over $100/hour for repairs; grass cutting companies easily charge $50/cut; and other services like pest control or roofers increase in price every year. Appliances are much more poorly made than 30 years ago and only last about 7 years from my experience. So, you are constantly replacing appliances. Every repair falls on the owner. A roof alone can cost $20k.
The final line you say sums up this video perfectly.
You've laid bare the harsh reality of our current housing market quite brutally. It indeed feels like a rigged system where a vast majority are left with limited hope and options. It's truly grim and we certainly need equitable solutions urgently.
It was better a decade ago, but its still very possible to get into a house. New houses built each day, death, divorce, ect. VA/FHA/ Grants all help and lenders are desperate for mortgages.
@@TheeRedBaronthis sounds like bootstraps with extra steps
@@TheeRedBarondid you even watch the video?
The entire system is specifically designed to make the people poor.
Sorry for trying to offer a solution to people who would rather complain than try.
This video makes so much sense. I'm a delivery driver and have to deliver to houses that are in isolated woodsy areas. And sometimes the home owners are senior citizens. I didn't understand why this was the case. Now I do
This is the thing that revolutions are made for.
I like your visual presentation. Very enjoyable. 😊
I've already resigned myself to the fact that my Dad has no savings or equity, and my mom only has a house she can't really afford. Basically my life is going to become a living Hell in about 10 years when they can't work for themselves anymore.
I wonder if there's going to be a massive increase in middle-aged people going to prison for the rest of their lives because they murdered their parents due to being incapable of sustaining the financial burden.
Depending on your relationship with them, leaving them to fend for themselves is an option.
It sounds psychopathic, and it is, but if someone’s parents kicked them out and refused to help them financially when they were YA who needed it, they should get that same treatment in old age. Adults take care of themselves, right?
Imagine this, but when you're in your early 20s. And instead of 10 years it's about 3 years.
@@tisvana18issue is some states by law require you to attend and care for elderly parents
@@Sheltur_0311I’m an orphan so it’s almost like I won the lottery free college in Florida so no debt so I’m less screwed. All I had to Sacrifice was ever being loved and a real childhood 😭😭
9:16 - The stock video of a "rich guy" standing at the charging station holding the cable as his Tesla charges (for 30-60 minutes) is hilarious imagery to me.
Lol that was hilarious
I was in elementary school in 1993 when my parents easily bought their home. It was like they went to the Walmart for homes and picked one out and had what they wanted with no issue. They paid $30k for this house Ina beautiful subdivision. I’ve been trying to buy a home with good credit and making six figures and I’m constantly declined 😩
My husband and I finally got our starter home a year ago when we were 32. Was 280k, very small but cute. Im super thankful 😢
Hate to say it, but a lot of my ability to retire will come from my parents passing. I was born in 1987, graduated college with a marketing and management degree in 2010 (still recovering from the recession) and the best job I was able to find was as a part time teller making $11 an hour. Took me a few years to get situated and I finally did in 2016, then in 2020 here comes COVID and I was let go from my job in July 2020 of 6 years. Since then, I have had 3 jobs and have not made more than $57,000 in a year (before taxes). Thank God I dont have any kids.
You shouldn't accept a single job under 80k my brother, even that is underpaid given your experience.
@@Krevvstoo bad teachers convinced everyone they had to go to college and it oversaturated the market with degree-holders. Having a degree doesn't drive up your value anymore.
@@Krevvs Easier said than done
@@NotKimiRaikkonen What a stupid take. If you think it was TEACHERS that decided to push college degrees at a time when manufacturing centers were being decimated all over the country and Reaganomics was being pushed as the new way forward (aka turn everything in the country into a ponzi scheme to funnel wealth to the elites), then clearly you need to go back to school.
@@NotKimiRaikkonen I am convinced industry had a hand in boosting the attraction of going into the fields too. Getting a saturation of graduated engineers, accountants, you name it, etc. means wages could be kept in line. Just my opinion. Meanwhile, when I graduated high school, anyone who had gone into a trade was considered a loser, deemed too dumb or whatever to go to college. Those tradesmen, if they hustled, probably could have worked their way up and had more money than the college grads in the long run. I think anyone who went to school in the 80's can reflect upon that. I'd tell a parent nowadays to consider just sending their kids to a junior college and investing the rest of the college money into stocks or real estate, anything but a $150,000 university bill.
My mortgage is around $3k. The average rent of houses in my neighborhood is $6-8k. How is this fair or reasonable? How can you allow someone to rent a house for twice of what it costs to rent, but the bank doesn't think it can trust these lendees to pay on time?
Find a new city / neighborhood
Well
Done
Video. Richer get richer. Something’s got to give
By 6 minutes I had the idea to comment "this is the closest I'll get to watching tik tok" and by the end I had no idea what time it was and no idea what the video was supposed to be about
I’m working really hard to eventually have something to pass on to my kids. Everyone pretending that it isn’t getting so much harder to even START is lying to themselves. I know I won’t get a thing from my parents who bought a huge home on a golf course when they retired. I live much more simply because I want to help my kids as much as I can when they need to start building their lives. It used to be a thing most people aspired to. I don’t know why it became “I got mine so eff you” even to your own family but it’s why so many people are struggling.
God bless you
the family unit and your local community has become much less important for many people. when that happens it's way easier to just focus on your own success. it also just became harder to get yours for a lot of people. kind of hard to view wanting a family as a responsible goal when you are isolated, struggling to take care of yourself, don't have a clear path towards financial and career progression, and are in a social media echo chamber of other struggling 20-30 somethings.
@@justinh2701 lmao yea it's the $11.99 a month Netflix subscription that's the problem. Gtfo
@@justinh2701 It's unrealistic goals to want what the previous generations got for much less work?
@@Lee-fw5bd people want to live in a car with a pet and call it a day
Private equity companies should NOT be allowed to permanently own single family homes, limit them to 5 years maximum before they have to sell.
tehy just gona make new company and sel it to that new company
They barely own any to begin with bro. They own less than 1%
Thats 5 years too long. Corporations shouldn't be able to own period
@@jer1776 I'm going to let you think about that one before pointing out how stupid that is
Problem: low housing supply, high prices
Solution: don't let PEs own homes
But!
Cause: Zoning policy limits new supply
New solution: don't let PE buy properties, ease NIMBY zoning restrictions
Great, but!
Cause: 30 year low interest mortgage disincentivizes selling.
Cause: Residential properties treated as investment vehicles due to above factors, big loans with low interest rates as hedge against inflation
New solution: don't let PE buy properties, ease NIMBY zoning restrictions, abolish FDR-era institutions that insures creditors that issue low-interest long-term loans that would otherwise be a poor investment for them
I may be missing numerous causal factors, but I think I've demonstrated that your peabrain solution ain't gonna fix shit
I agree that younger folks have difficulty purchasing a house. due to high house prices and stagnant wages. Our son and his girlfriend purchased a house recently. We have been out of the housing market for a zillion years so were surprised at the current cost of housing.
Something I have not seen mentioned is building your own house. My parents were frustrated with housing costs immediately after WWII and that inflation was rising faster then they could save money so in 1953 they built their own house. My wife and I did the same in 1982, we were lucky to find a large property and built our house. At the time interest rates were extremely high. We were betting they would not stay so high and that we would be able to get good prices from subs to do work we could not do ourselves. It could have gone the other way but worked for us. Of course building your own home is not for everyone but I think there are creative solutions to the problem. Ultimately home prices have to track what people can afford to pay so at least indirectly linked to income.
The big problem that I see with this new age no matter which way you look at it is hyper inflation. Whether you are buying food, a home, healthcare, or trying to retire the overwhelming data shows inflation is the issue with little increase in wages for employees.
This is by design. The people supporting the government with political donations are the ones benefitting. Fix that and you take the cork out of the bottle
I remember when I was a kid in the 90s my parents were renting this apartment and land lord offered to sell them it at 30k. My parents didn't want to live there long term, so they declined. That same apartment would be valued at about 200k to 250k present day.
If I had a land lord of mine come along and offer me the property for 30k I would say yes in a heart beat.
My grandparents offered my dad a house with lots of acerage with the stipulation that he helps out on the farm.
Pops turned that down in the early 80s. He would be a literal millionaire today if he took that offer.
Grandparents sold the farm in the late 80s for a fraction of what it would be worth today.
My boomer parents turned down a 3bd/2ba house on 5 acres for $5000 in the early 90s when I was a toddler and my mother still kicks herself for not buying it because then I wouldn't have had to buy a house. But oh well. Live and learn. I know however that I will not be selling my house as we originally planned and I'll put a home on our other property and give this house to my kids to avoid them having to pay exorbitant rent prices in the future.
Hind sight is 20-20.
that's less then 5 percent annual return, including inflation,. so Investing in that apartment was a bad deal
@@matthewhungerford1861 somewhat true. The parents could have leased it out when they were not living in it and have been pulling in money on a monthly basis for the past 30 years.
The problem is corporations get too big and they end up being a monopoly making it next to impossible to compete
Yes. This is corporatism. They basically just take turns owning various parts of government and keeping politicians who are friendly to them in place, while the same politicians spout about the evils of rich people and capitalism and run and get re-elected on the empty promise that they will do shit about it. I don't care if you are leaning left or right in the upcoming elections, the hard truth is that it will. Not. Matter.
This is their nest egg being threatened and they will absolutely crush a country and run away after new laws are made to combat the pressures of what they've been protecting for years. Even Nancy Pelosi is planning to retire in Florida because the laws she helped enshrine would affect her own wealth.
But take heart: the worse it gets the stronger the people are who will be born out of the struggle. Lessons will be learned, bad science eventually gets rejected. There WILL be a boom after a hard enough crash and it will benefit people more than hurt them.
HUD gave these corps. 0% money in 2007 onward, making the very problem it's supposed to be helping a lot WORSE
The way things are now, I doubt there would be a flood of homes for sale suddenly, but there would be a whole lot of people finally able to get their families off the street... and very grateful to be able to do so..
Always great watching something that super depresses you in the morning…
I think that the biggest illusion that people have is that social security can solve all their problems in old age. Perhaps in the next few years, the pension system will be abolished and people will be left fending for themselves in their old age.
Which they voted for
The money goes to the care home industry, banks buy all the houses, and young people stay poor.
Exactly, we won't see a dime
My parents and grandparents are poor af and won’t give me anything when they croak. I’ll have to pay funeral expenses and healthcare expenses.
Yes you can. Have a decent credit rating? Talk to a realtor
@@emilyfeagin2673”Now is a GREAT time to buy a house!” - guy who gets paid if you buy a house
@@emilyfeagin2673 oh, so someone making $40k a year with a decent credit rating can get a $800k home? It's really that easy huh?
The intro here really got to me because the entire reason my mom was able to buy a house (which will then go to me) is because the original homeowner died and her children were desperately trying to sell it.
Been looking at property in SW FL. Last 2 years people were paying premiums on new homes, builders were raking it in . This year builders are offering discounts on lots, subsidized interest rates & throwing in extras. A little softening. In the past FL markets indicated national trends. Interesting to see what’s plays out.
The note about assisted living quality dropping caught my attention. With the number of old people who vote rigorously, you'd think they'd recognize it's in their interests to regulate the industry to ensure decent quality and non-exploitative prices... but that doesn't seem to be the direction things are going.
When my mom was in one of these facilities a decade ago, we couldn't believe how gross and underfunded-looking it was. If you're telling me quality has gone down since, that's really troubling.
Too many of them have bought into the individualist mentality. They think that success and failure is completely due to personal responsibility and so most interventions that would improve living conditions across the board are turned down because they don't see a systemic solution can fix personal moral failings. The group would rather eat itself first. "Why should X get a house when I had to struggle for mine?" "It sucks that young families cant afford a place to live but its not fair that the people who did well for themselves have to be punished for that!" Etc.
@@PrettyGuardianI'm thinking more about entirely self-interested voting. A large number of old people generally end up needing assisted living or wanting to live in a retirement facility, etc. Those facilities are getting much crappier, because they're being bought up by large holding companies that want to squeeze every dollar out of them. You'd think we'd see this cohort voting to improve the places where they're living or going to end up, by regulating away the worst tactics being used to maximize profits at the residents' expense.
But maybe these large companies know just how far they can drop quality without generating a coordinated response. Or people don't care quite as much as I feel like I would, in their position. *shrug*
@@danielhale1The biggest consolation I can tell myself is that once enough chickens vote for Col Sanders, we won't have to worry about chickens ruining things for the rest of us anymore.
Mom is in California and she and I used to volunteer in these convalescent homes . We have private medical insurance and even then, the cost is draining our family accounts. Where I am in Canada SAFETY is now an issue. In a GOOD govt. facility a senior in care with dementia murdered my neighbours grandfather.
@@user-zp7jp1vk2iYikes! I'm so sorry to hear that!
This just really make me realize how lucky I was to buy a house in 2016. So many friends said to just wait until the market crashes, and that houses were too expensive, but I just thought that I didn't want to keep sinking money into renting. It was very hard to afford it at the time, but all my finances just improved ever since. I wish we weren't forced into these impossible situations just to afford a home.
Yeah i got a house in 2019 right before prices seemingly doubled. People who think houses will go down need to consider the price of rent and how it pressures people into buying for stability
I'm in a similar boat. Was encouraged by a friend to try to buy rather than rent in 2018. Was surprised I qualified w only 3% down payment
Now I'm glad to own a home but need to move for my kids school but can't afford to lose this rate (that I am already struggling to maintain payments on)
@@sp123 I think I heard someone discuss that there is going to be a cultural divide between those who bought a home before 2020 and those who can't anymore. It just sounds scary. It would be way less terrifying if houses weren't also hoarded by investors who are just going for profits.
Yeah, I feel very fortunate that I was able to squeak into home ownership back in 2017. During the pandemic, I wasn't working, but my house was making plenty of money on my behalf. While I'm far from wealthy, I am keenly aware I do have a financial leg up on most and really feel for those who are on the "have not" side of this divide.
Yeah, I'm in the same boat. Bought a starter home in 2016 and "upgraded" to a bigger family home in 2019 using the equity from the starter home; even paid a little extra to refinance and lock in the lower rates the day before the lockdown started in 2020 - but definitely worth it!
So I should have bought a house when I was 15 during the global financial crisis? And they wonder why we have fewer kids and mental health problems