Real Estate Expert Answers US Housing Crisis Questions | Tech Support | WIRED
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- Опубліковано 14 тра 2024
- Professor of urban planning Kate Nelischer answers your questions about real estate and the US housing crisis from Twitter. Why are homes so expensive? How is AirBnB affecting the housing market? Why can't millennials afford a home? Answers to these questions and many more await-it's Housing Support.
Architectural models by Reid Architecture
reidarc.com/
Disclaimer: The graph shown at 0:18 depicts income data adjusted for inflation, while the rental price is not. Rental prices are still outpacing income growth, though the increase of rental prices since 1985 is not 100% when adjusted for inflation.
Director: Lisandro Perez-Rey
Director of Photography: Constantine Economides
Editor: Louville Moore; Louis Lalire
Expert: Dr. Kate Nelischer
Line Producer: Joseph Buscemi
Associate Producer: Brandon White
Production Manager: Peter Brunette
Production and Equipment Manager: Kevin Balash
Casting Producer: Nick Sawyer
Camera Operator: Roberto Herrera
Sound Mixer: Brett Van Deusen
Production Assistant: Sonia Butt
Post Production Supervisor: Christian Olguin
Post Production Coordinator: Ian Bryant
Supervising Editor: Doug Larsen
Additional Editor: Paul Tael
Assistant Editor: Billy Ward
00:00 Housing Support
00:11 Why does rent increase yearly?
01:08 Is there a housing emergency?
01:46 Why are houses so expensive?
02:33 Abandoned buildings used for affordable housing?
03:52 Modular housing
04:46 Oceanfront property value
04:58 What is red lining?
06:22 Is gentrification all bad?
07:30 AirBnB
08:13 Why can't millennials afford a home?
09:09 Leading cause of homelessness
09:50 Unhoused people in Los Angeles
10:58 Why are corporations buying up houses?
11:53 Low volume of homes on the market
12:54 What country has country figured out?
13:49 Squatters Rights
14:32 Where is it affordable to live?
15:21 Tiny houses
15:52 What will bring house prices down?
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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
“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 👍
@@yelyakAnd yet the US has an epidemic of vets on the streets.
@@FATTONYKAUAI don’t see the irony of a guy who got rich saying the American dream is dead?
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.
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 adorable 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.
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
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.
@@tomasingihrolfsson9749 so the gap is even worse than shown? 🙃
@@inzane.hanson no
@@inzane.hanson 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.
@@tomasingihrolfsson9749 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.
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).
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.
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 😢
@@DDRWakaLaka It's 170k you idiot. You're obviously not a homeowner. So stop talking.
@@zdavidzz What is bro yapping about 💀
@@zdavidzz can you extend this offer to me?
@@colingraham1585 Yeah, looks like she snubbed at the opportunity. I guess send me your fb/insta
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?
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
I sold a couple properties in 2020 and I'm waiting for a house crash to happen so I buy cheap. In the meantime, I've been looking at stocks as an alt., any idea if it's a good time to buy? I hear people say it's a madhouse and a dead cat bounce right now but on the other hand, I still see and read articles of people pulling over $225k by the weeks in trades, how come?
You're not doing anything wrong, you just don't have the required skillset to profit off a down market, folks that are making profit in this market are pros and experts with in-depth knowledge and skillset.
Very true, you can be passively involved in the markets and still amass wealth-gains using an investment advisor. I first dabbled in stocks late 2019, just before the pandemic, and that same year gained over 150% with no prior investing experience, basically all I was doing was following directions of my advisor. We are working on a retirement ballpark of $3m and I’m certain my goal isn’t farfetched after subsequent investments and tremendous returns so far.
Could you kindly elaborate on the advisor's background and qualifications?
The advisor that guides me is Sonya lee Mitchell, most likely the internet is where to find her basic info, just search her name, She's established.
There’s no housing bubble bro. It’s a market correction. Houses are only going to get more expensive
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)
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).
I saw a wooden high-rise the other day in San Antonio. I couldn't believe my eyes, such a high wholly wooden structure.
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'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
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.
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
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
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.
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.
The rent to income graph animation thats shown and the printout tell me the preparation behind the scenes is solid. 😀
We need to do something about this, yesterday.
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'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
Very nice to see someone using 'unhoused' instead or homeless, a very important distinction that needs to be recognized
Corporations ruin everything.
"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.
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 in the UK, I believe there is a requirement as per the tenancy agreement for both the landlord and the tenant to do their part in maintaining the property to a certain standard. For the tenant, this can mean simple things such as not creating an environment where mould will grow and keeping it clean and tidy. For the tenant, this will involve the appliances and general upkeep of the building.
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?
Business insider had a great article on effects of banning Airbnb.
In short the banks have found a way to force themselves in between you and your residence. You have to pay the banks for house or rent… prices are high because we have no choice, we have to live somewhere. They figured out how to exploit that weakness.
Airbnb is a cancer just like the big business it wants so badly to be. When several cities up here banned it the corp came out with a "how to" for each area to get around the law. They need a hostile government takeover and literal firesale. Gotta cut these dupont wannabes down early lol
This was great! Kate Nelischer is great! So knowledgeable and explains things so well. Bravo
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 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.
Why do bedrooms need a window?
Some hotels I've stayed in had no windows but they have 2 emergency exits (2 doors) between the room and a secondary hallways.
Short 4 million homes? 1:57
That number has been estimated between 6.5 and 10 million homes short. We build about 1.5 million homes per year on average for the last 50 years. Unfortunately during the global financial crisis we built about half of that for almost a decade. If you look at the migrant crisis and crazy influx of population I would say all of those number are on the low side. It’s going to take a major shift to play catch up.
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.
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 really doubt we have an issue with availability of houses. I'd have to go check this out, but I remember hearing we had 3-4 times as many houses as people, they're just super expensive houses like she said. It's not that there's not enough homes, they build them for rich people who don't exist.
I wonder how to find vacancy rates for my area?
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
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
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.
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.
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
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 love everything you had to offer but I am shocked you didn't mention how the government should make the process easier to build and how they should open up zoning laws. Along with the need to increase the trades & laborers.
wouldn't do anything as those aren't the problems, except zoning to build denser and multifamily buildings
Enjoyed this high level view of the multiple and complex factors affecting the housing market. Many things need to change to make a difference and generally, people are resistant to change. Would love to see deeper dives on some of the major themes.
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.
Housing is so broken... get these corporations outta here.
Just tax land, whether individuals or corperations capture that ground rent value doesn't matter. The only way to prevent the run away cost of land is to tax the value away. Georgism!
You understand a corporation is just a bunch of people organized around a given ecomic project, right?
So if i want to build a house and rent it i can, but if i join with a bunch of people to build it i cant? It makes no sense
What you guys need to do is build more appartments and infrastructure, not get rid of the corporations that do it
Pfff.. Asking Americans to ban corps is like asking them to have common sense. They live in their own little world where aggressive capitalism and militarism are the only option, even though everyone else sees that's what's killing their country. USA expends hundreds of billions every year in their military alone, to "police the world", while their people have life long medical/student debts, you can't expect a country like that to do anything right.
@arnaldo8681 No, get rid of corporations. They ARE the primary reason the housing market went down the crapper.
@@arnaldo8681he means we should make laws that stops the financialisation of housing, or to discourage it at least. It would be tricky, and certainly not something a politician would attempt in America.
Great overview. But regarding prices you only commented on the supply side, not the demand side and not the effect of an inflationary monetary policy. Trying to put programs in place without addressing those is fighting compounding undercurrents.
The detail and clarity of these answers is superlatively good. I really appreciated these insights.
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.
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
Yoooo Buffalo mentioned?? No wonder I can't afford to leave my parents house lmao
I love that the answer to "where are they getting housing right?" is "not in the US".
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.
@joelkatz7923 but she never mentioned zoning reform, and provided "solutions" like demand subsidization and min affordable housing limits that are entirely counterproductive to lowering rents and building housing
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.
@16:00 eliminate or limit business/company ownership of homes. It will absolutely crash the market but make it reasonable/fair valued over time. Housing affordability increases growth in all other aspects of society. So this is probably best option for us all.
I was able to buy a low end condo 20 years ago and the difference that makes in my housing cost is so important. I've talked to other people who are on the tail end of their mortgages and what we pay for housing compared to rent or a new mortgage is ridiculous. The summary of the problem in housing seems to be two fold, one the commodification of housing as an investment vehicle rather than a social good and two burdensome regulation.
Swing and a miss on "squatter's rights," she wasn't asking about adverse possession but about how anyone can claim to be a tenant then it takes months to kick that person out of your house.
she skims over an incredible amount of information in this video tbh
Local and state laws need to be changed to criminalize squatting, like they're doing in FL.
The question simply asks what squatter's rights are, and she answered that. You answered an imaginary question about how they're abused.
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.
Does the construction of luxury housing increase or decrease overall housing prices in a small city?
How about ending cooperate hold on residential property of any kind.
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.
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
In Nova Scotia starting a year into the pandemic the rents almost tripled in a 3 year span of time. Also, I love this woman's hair.
Kudos to Vienna for taking care of their population. Housing families is important and prevents separation in sheltering.
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.
Basically all of this would be solved if residential housing was removed as an asset class. Add laws that limit enormous ownership of houses and prevent corporations owning residential real estate. In Australia, we have also had lots of small investors such as families sinking all their weath and borrowing capacity into real estate. People aren't diversifying and propping up a bubble. I have been waiting for this bubble to burst for a long time. Every other country has had a real estate boom and bust, except Australia. We are no different to other countries - except for our obsession for houses. It is weird.
100%. End the commodification of housing (and health care while we're at it).
Sadly not simple. The issue is a lack of supply, not who owns the supply. You need to build.
All this would be solved with less red tape, destroying NIMBY mentality, and loosening strict zoning laws. Disappointed that none of these were mentioned.
Correct
That's a bit extreme for us, Europeans, but i doubt we're about to turn more capitalist, so i approve. And our opinion on health care is a well-known fact.
Rent control and extremely long approval processes are what have caused the massive jump in the cost if living.
More urban planning Tech Support!
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.
I paid $42,000 for my first house in 1993. Just wanted to ruin everyone's day.
You are the greed
😢 mission accomplished lol 😆
I paid $22,000 for my house two years ago because I chose to live in Warren Ohio. All these people complaining about the cost of houses because they think they’re entitled to live in nicer areas than they can afford. I chose to live in a place that allows me to save more of my income and have very little sympathy for those who complain about being entitled to more than they can afford.
Just based on inflation that’s $90,000 which is higher than the mean house price for quite a few cities today. So good for you.
Well I hope your happy, cause you accomplished your mission
😢😅😂 lmao
4:15 Mass Timber!! The southeastern US is an ocean of southern yellow pine for making mass timber which can be used to build up to 18 stories with little concrete. Shorter construction time with less crew, less insurance, and using domestic materials with a much smaller carbon footprint. Also no need for dry wall on inside because wood paneling is beautiful.
THANK YOU for talking on this! I had the very scary decision of scrambling where to live when my rent jacked up by $400 and told only within a 3 month timeframe. $1700 for a studio apartment that is barely larger than the bedroom I grew up in is insane, and I wasn't even living in NYC! I was in much further upstate NY! Any place that I could afford kept getting grabbed up or had an insane wait list of over a year! I got placed on a few of those wait lists, and it's been over a year now with no calls. Had to make the difficult decision to move much further away in order to be able to afford a normal life, and I'm just thankful I had the money to move after not finding a place I could afford to live just two years prior. It's quite funny to see the number of Air BnBs that would've been somewhat in price range and I honestly contemplated for a time getting a storage locker and living out in one of those while I sorted my affairs, but I will *never* give my money to any of those owners with how they (not they alone but still) helped people like me not find homes in our communities we grew up in.
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!
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
THANK YOU! Share, share, share this, friends. We all know why this is happening, and here's an expert telling us we're right.
In my opinion, there is a simple solution to this issue. Houses that are listed for sale should be required to have a 90 day window where only individuals purchasing it as a primary residence can make offers. After that 90 day window, anyone and any entity can purchase it.
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
This is probably the most interesting topic as it is one of the most serious as it fluctuates the most and affects us all
What an amazing educator. Thoughtful, succinct, and authoritative. This is a great video. Plus, the Canadian accent is cute af.
4:30 - that's the building I live in (it's in Stockholm)😄
As a native Californian this video really dispelled a lot of preconceived notions I've had about housing issues, especially how it relates to homelessness, and also clarified other topics that I only had half the information for, like the impact of Air B&B's and luxury developments. So glad I watched!
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.
1800 a month for a one bed one bath in Florida its nuts
"Financialization of Housing"... all I needed to hear lol. FML
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 😂
I was living in a horrible roach infested apartment owned by some investment company out of Quebec a year ago (thankfully I got out thanks to moving in with a roommate)
The staff couldn’t do anything, or so they said. The pest control people kept telling them they needed a big clean out but the investment company-an 8 million dollar company-wouldn’t give them the 10 thousand they needed. I was desperate and managed to get ahold of the chairman of the company-he barely let me introduce myself and practically hung up on me. I had to literally sign something saying I couldn’t post online about the conditions of the place in order to get out of the lease.
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'm not sure how I would feel about living on the 18th floor of a mass timber structure. How long does this special glue remain viable?
11:33 - Stating it in terms that terrify me. Water is probably next! lol
This is a very needed video. Thanks for this excellent series Wired.
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.
THANK YOU for talking about how airbnb and short term rental economics is affecting the housing crisis. It has veey much affected my town. I just want an affordable studio apartment. 😭
7:30 that pronunciation of Regina 😂
I'm glad someone said this 😂🤦
That’s how the city name is pronounced…
If it's a person's name it might be pronounced differently, but the city in Canada is pronounced that way. The expert has a Canadian accent, so she probably just assumed the city?
TIL this is canon in Canada lolz
Re-CHINA!
Housing and rent have been a problem for over 30 years. We arw a commodity that is being squeezed
She did not mention Philadelphia or Chicago Metro Areas, both of which perform fairly well in terms of rent to income ratios right now.
and Huston apparently
13:27 Sincere feedback - the colors in this chart are too similar for me to parse.