Do We Actually Want Affordable Housing? | The Housing Affordability Crisis We Don't Want To Solve

[@EconomicsExplained]

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[@Obscurai]

Doing nothing assumes that the market will correct itself quickly enough and in a better direction to limit human suffering affordability. While markets will level out over time, it is the duration of suffering that needs to be addressed. Current trends seem to indicate that a market rebalancing won't happen in at least a generation. This is not a solution.

[@DingleberryPie]

Shelter is not a human right.

[@runningfromabear8354]

Most people don't have nearly enough retirement funds to retire. Companies used to have decent retirement funds. Until rich societies resolve retirement funding, home owners will jealously protect their one appreciating asset. I know parents one and only retirement plan is their house. Born in '59 and '60, they've never worked in places that offered secure pensions. Their savings were wiped out in the 80's and then they lost their first house in the 90's. They lost their savings again in the 2000's. Society has wiped out their investments repeatedly. Their house is their only asset of any significant value and they're reaching retirement age. A lot of people are like them. And look at our LTC's and assisted living centre's. No one wants to live in those places. We have demographic time bomb and vilifying older generations without pensions terrified of where they're going isn't going to fix the problem. Want affordable housing? Offer retiree's a way to live that isn't just basic survival with risk of resident dumping.

[@jasonwilkins1969]

Thanks for including race in this video. In previous videos, it was noticeably absent when it played a significant role so I'm glad to see it being factored into the analysis

[@TheRealE.B.]

Where did you get all of the stock footage of ugly houses for this video?

[@stevenmiller279]

It seems to be the moral of this story is, rising house prices are good for those who already own a home

[@SuperBooboo02]

not if they keep raising the property taxes on them

[@russetwolf13]

Pull the ladder up after you, the adage no one promotes but everyone does.

[@NoOne-le2jv]

But they're not if you need a bigger home. It's this whole fallacy of wealth being tied up in bricks & mortar and not being spent productively on education, wellbeing such as holidays, better public transport etc. Say you have a house worth a $1 million, you're not a millionaire since if you sell your house to buy a used Veyron for $1 million you'll have nowhere to live.

[@mezzthedragon]

House prices have raised by 1/3 and I'm looking for a home. No its not fine the people can't earn their first home and live independently

[@davescott7680]

@@NoOne-le2jvExactly, I sell my house to get a new one. The new house also costs more by roughly same amount. The only people who benefit are those who own multiple houses.

[@stevespike8208]

“It’s actually not that bad just make sure you already own a home first” oh fantastic why didn’t I think of that

[@alansach8437]

Right! Who ARE these people??

[@robertt9342]

Even if you own a house, upgrading is hard because even if they appreciate at the same/similar rates, the difference in capital required to buy them is appreciating at rates higher than income. Basically this is only good for people looking to downgrade.

[@siliconhawk]

what you are poor ? just get rich bro its so easy. idk why people dont understand

[@TheCrazyCapMaster]

@@siliconhawkCaptain Rich would ask why the poors don’t just have their butlers fetch them money 🤣

[@natsuds1]

Yeah, why aren't you rich😂

[@zerotoinfmath]

"Is it a problem?" It depends on who are you asking. For someone that already own the house or maybe a few more investment properties, it is not a problem at all. But for the young people who want buy a house to live in, that is a huge problem.

[@mariokarter13]

"Why did this happen during a pandemic." Crises don't create trends, they accelerate existing ones.

[@rattlehead999]

and since it's capitalism the customer and employee don't matter, it's the investor that is important.

[@johncounts2182]

@@rattlehead999 It's not capitalism.

[@rattlehead999]

@@johncounts2182 yes it is.

[@johncounts2182]

@@rattlehead999 Fascistic over regulation by the state at the behest of the investor caste is not capitalism. get your enemies straight

[@OkamioftheRinnegan]

"If you can't afford a house, then just pay for it by selling a house" Gee, thanks. I'll make sure to eat lots of cake when the mortgage starts encroaching on my food budget.

[@alansach8437]

Right! Cause we all have a bunch of houses just sitting there collecting dust! News flash! The vast majority of people who own a house at all, own one. And the bank owns most of those!

[@sebastiangibson9671]

It’s the equivalent of telling the poor to eat cake or in this case “just buy a house to sell and then buy a new one lol”

[@Helperbot-2000]

@@alansach8437 well "we" dont, but "they" sure do, i believe theres around 15 million empty homes in the us

[@anthonymigliaccio3492]

“Assuming their kids move out, which might not be a given these days” Yes, it’s almost as if they can’t afford to move out….because of high housing prices

[@Turkey936]

I think that's the exact point he was making

[@smellslikeupdog80]

@@Turkey936 I think he made that point poorly

[@feral5404]

It can be done it just sucks

[@angrydragon4574]

@@feral5404 Yeah, if you're stupid enough to take out a loan that will take 45 years to pay off. You'll be paying for that home from your early 20s all the way to retirement.

[@eduardog3000]

Same with "which means that whatever money they do have coming in does not need to be diverted into paying for housing which is a surprisingly large portion of most people's budgets". If houses were cheaper, we wouldn't *need* to use them as "investment vehicles" just so we can have a place to live.

[@fellowish]

"Has anyone stopped to ask if this is actually a good thing?" Considering homelessness completely isolates people from being able to even participate in the economy, yeah. No. It's not a good thing. Not even for the home owners.

[@Justathought81]

and look at the homeless problems in all major US cities with bustling economies... how long can that continue at this rate, it just cant and its making it shitty for everyone allowing these companies like BlackRock to purchase housing like an investment and rent them out indefinitely.

[@magnusvestad1791]

Is rising housing prices bad for people who own a home or more? No. wow thanks economics explained.

[@sgwinenoob2115]

The way he slips in suspect conservative ideas into an otherwise fairly sound overview makes me think he is some sort of psyop. Or at least a neoliberal mouthpiece for the status quo

[@jinkiskhan1967]

@@sgwinenoob2115 neoliberals want to increase affordability by increasing supply, this guy just sounds conservative

[@sgwinenoob2115]

@@jinkiskhan1967 this guy together with whatifalthist are the biggest pretend centrists on youtube. They pick and choose evidence and put on a faux intallectualism but they are in reality the biggest supporters of the conservative status quo. You should watch the amount of China (anti socialist) baiting that goes on in that channel

[@eVill420]

@@sgwinenoob2115 definitely, I remember another moment I felt like this in a video about how socialism doesn't work and used the Netherlands as an example using cherrypicked data to show it creates inequality... despite the Netherlands being EXTREMELY equal

[@bluemarlin8138]

@@eVill420 It’s almost as if...very small, compact, ethnically homogeneous countries which didn’t fight wars of independence that defined their culture as being skeptical of government, have very high taxes, don’t have as much respect for individual property rights, were rebuilt on the US’s dime after WWII, and live under the US defense umbrella so they don’t have to spend much money on it, have an easier time being “equal!” Amazing how that works!

[@chilln0648]

“Do we want housing to be affordable” Yes. Housing isn’t (or at least shouldn’t be) an investment, its a consumer good. Its one of the basic things a human needs to survive, on the same level as food and water. To say that more people having them is a bad thing is ridiculous, and this isn’t a partisan argument.

[@BruteDion]

Guess a restaurant or owning a farm should not be an investment either.

[@naif8493]

Housing isn’t on the level of food and water. You can survive on rent as I know friends and relatives who live on rent their whole lives. Owning a home is a privilege, not a necessity

[@nopens]

​@@BruteDion How dare you use logic.

[@potato1084]

@@BruteDion That’s completely irrelevant though.

[@potato1084]

@@nopens What logic?😂😂 Commercial investments are completely different to **residential property.

[@MrYungsan]

I think having affordable housing available is much more important than a house being an appreciating asset.

[@ComradeOgilvy1984]

I agree. What we have is a completely unnecessary slow motion disaster inflicted on the younger generation. (I speak as someone who is fortunate enough to own his own home and has nearly paid it off completely. High housing prices is causing enormous damage to our society, even if it is so easy to overlook it once I have mine.)

[@PWingert1966]

The real question is would you give up half your income in taxes to build it?

[@MrYungsan]

@@PWingert1966 Yep

[@nabagaca]

@@PWingert1966 Is that a trick question? I would need to pay way more than half my income to a mortgage to have even a moderate house in my city lol. Only half my income would be a bargain if it guaranteed houses that were as easy to buy as there were in the 70s.

[@PWingert1966]

@@nabagaca For affordable housing to bbe built in the quantity needed to house the 75,000 people currently on just the Toronto housing list the figure to build is in the billions. An actuary worked out taxes would have to triple to fund the level of housing needed. So it would be a question of how much of you pay cheque in taxes are you willing to off to build affordable housing for others to live in? That includes seniors, low income workers, those with disability and those suffering from mental health and addictions (total of about 4 million people and growing)

[@arthurgraton7165]

you're right, rising housing prices isn't an issue for people that already own a house. I'm looking forward to sleep on the street in front of an empty house I can't afford with my friends.

[@tuele4302]

If you were smart and hardworking enough, you could one day own a home.

[@Letsbesalty]

@@tuele4302 This isn’t the case at all. Plenty of veterans are homeless, some of the most hardworking people in the world can hardly afford a place to stay.

[@tuele4302]

@@Letsbesalty Veterans deserve some extra help. For the other able-bodied people, no.

[@jackb.207]

@@tuele4302 veterans can't afford houses so they need little help everybody else needs to work more than veterans did and without help afford a home. Ah yes your logic is so sound people go deaf around you.

[@tuele4302]

@@jackb.207 Veterans are not equal to other able-bodied persons unwilling to work.

[@mariokarter13]

If you wanna know how screwed our economy has been for decades, consider the fact that ONE income earner used to be able to afford all this, while TWO are barely able to scrape by now. We've gone from "the woman doesn't work" to "the woman doesn't _have_ to work" to "dear god, woman, if you don't start pulling your weight around here we're gonna be out on the street."

[@niklasmolen4753]

It is not easy to compare, because homes today have a much higher standard and are usually much larger per resident.

[@johnsamuel1999]

Homes today are better than they were back then .

[@balthus9105]

@@niklasmolen4753 My one bedroom house has no washing machine and no shower with no way of putting them in and I still had to put down a minimum of 60k to buy it and I earn average money for my area, also modern houses have much smaller rooms and are made of cardboard.

[@sgtbilko2950]

All changed when women entered the workforce and suddenly people started putting joint incomes into a mortgage

[@piotrcurious1131]

@@niklasmolen4753 So, where are low standard houses with small space? Is there some magic making each house built big and high quality? Land itself is expensive, most ppl would be happy living in van or shipping container, still where to park it/put it on?

[@travisissoocool]

In the 70s, you could buy a house on one year’s salary. This blew my mind. Retiring would be a lot easier if you didn’t have to spend 30 years paying off a massive home loan.

[@Mic_Glow]

Yeah home loan cuts into your spending power heavily for 30 years. And that's assuming you have 2 working people with above average salary, one person can't do it (or would starve).

[@briannadickson2884]

Why 30 years? Pay the principal down monthly.

[@Mic_Glow]

@@briannadickson2884 Umm.... you have to pay monthly anyway to avoid penalty %? Idk if you can pay the principal only. The way loans work you pay interest AND principal, mostly interest at start or repayment process. Bank wants to get their profit first. If your income is so high you don't need 30 year loans.... good for you. I need to take one to afford a ruined shed. If I also want to have electricity, gas and food.

[@firstlast-fr1le]

@@Mic_Glow Yes you can pay on principal only. There is a catch if your loan is not a simple interest loan (most home loans are not unless private). You have write them a note telling them to apply the extra to the principal or they will apply it to the interest, as you stated.

[@cassieoz1702]

Weird. In 1973 I was taught (at school in Australia) that your family could 'afford' a home valued at 3 X your gross income. Big mismatch with figures quoted

[@r9bet]

"I'd go and live on some remote island somewhere" Mate you already do...

[@galenwarren3579]

Spot on!

[@mechanicjobs]

That’s funny.

[@As_A________Commenter]

Underrated comment haha

[@salurbasbug5086]

where is the like of the "Economics Explained" ? :D

[@As_A________Commenter]

@@IIZCHAOS The joke you

[@KDeds21]

"Is it really a problem?" For all of us young people who are going to inherit debt, poverty, and homelessness, yes it just might be a problem.

[@caiofernando]

The author clearly owns a home already.

[@michaeltorrisi7289]

The young, at least here in the States, tend to skew wildly to the progressive side of the spectrum, and the shutdowns and restrictions over Covid fears were driven entirely by the progressives, so... shot themselves in the foot? Shot me in the foot too, which is why I don't have much sympathy. The young might be able to recover economically. My savings were wiped out by the financial hit to the service sector, which I work in. At my age, it's not just home ownership that's a pipe dream, retirement entirely is out the window. I've resigned myself to the fact I'm just going to work until I fall over dead.

[@antonteodor6305]

@@michaeltorrisi7289 Restrictions over COVID are not matter of left vs right. They are necessary, period.

[@jerrelhurenkamp5251]

@@antonteodor6305 very true. Economic security and covid recovery is not a right or left issue.

[@KarimAlKharsa]

@@antonteodor6305 after a certain period of time, it became entirely a right vs left here in the states

[@spinnie0]

The fact that your section on "is this a problem?" covers only the perspective of a home owner, and thus concluding it's not that bad, is so perfectly indicative on why so little is being done to address this issue. OBVIOUSLY the problem is for the people who don't own a home yet, not for the home owners. But alas, the majority voting population are home owners who couldn't care less about future generations and just like to see their net worth grow, ignoring the fact that it's fictional gain most of the time anyways considering they can't cash it in without having to buy back into the same inflated market. It's so short sighted and absolutely depressing as someone who does not own property.

[@hiimjustin8826]

EE mentions they own a home in the video omegalul must be nice

[@KRIGBERT]

I'd say he adresses it during the last 5 minutes

[@tuele4302]

Actually, they do care about future generations, as long as these individuals are their family members. If you're not one of them, why should they care?

[@peterfalamoun1578]

Well unfortunately you’re wrong at the end there because homeowners won’t have to cash out and buy back in to the same market…. If they own multiple homes :(

[@whoopass2rb]

Well I think (should say I hope) we'll see a change when future generation of politicians get into office, and that older audience is now reliant on them to pass terms that benefit them in pension or long term care. To which I hope they decide to make sacrifices there (as much as it pains me to say). I love my grandparents (born 1940s), but they over spent and got to enjoy a lot of life. Now they are wanting people to take care of them in their lack of self-reliance wealth generation. The only wealth they have is a high value home which they would never sell because they couldn't afford to move into another property and downsizing or even renting would be considered a failure to their life's accomplishments. It's the definition of privilege and they don't want to give that up willingly. I love my parents (born 1960s) very much but they are equally in the same boat, with a worse outlook because their home is their only form of retirement and it's not a great one. They will not be able to afford retiring in the next 5-10 years. That burden will start to come back to me and younger generations to support both older classes with their pension and long term care requirements. I will not see wealth from inheritance of my grandparents, and by the time I likely see from my parents (if there is any), I'll be in my 60s myself (hopefully I and they live that long). If the moment you get to buy your first home is when you are 60, that's a problem. Sure I'll be setup for "retirement" but at that point, I'd probably look to pass on the wealth sooner to benefit any children or grandchildren I had. No one should be going through the world feeling despair this way. It's not right for developing countries but it's even worse in what are considered developed ones. The time for looking at properties as a form of appreciating asset, an "investment" to generate wealth has come to an end. We need to try housing for what it is, a right to have a place to live, where when all other life mishaps kick in you will own something that no one can take away from you (under reasonable limitations of course). You think the problem is bad today? Wait another 15 years when people who have never been able to afford start getting close to retirement and have rising rents and inflation to their annual income requirements. They won't have enough money saved and it won't be about being stupid or making poor choices - those people literally couldn't afford to get ahead in life and are now at the other side stuck with the hand they were dealt. I fear even worse for those coming after me (gen Z and on).

[@Bravedom]

Ironic how investors buying homes didn’t make the list of reasons why prices are increasing.

[@taylordavison6849]

Maybe because they're doing their damnedest to paint a picture of a rental market or high mortgage rates being a good thing so they can increase their returns.

[@visno]

“tried to buy a house, but the bank determined i couldn’t afford a $1900 mortgage payment every month. so now i pay $3000 in rent every month.”

[@crystalquinonez3668]

yep!.. this is some real bullshit, isn't it...

[@toomuchtrashpodcast7412]

@@crystalquinonez3668 if you pay 3k a month for rent. That's on you. You could downsize, move and save for a down payment.

[@gemini6613]

@@toomuchtrashpodcast7412 What if there is nowhere cheaper to move to?

[@toomuchtrashpodcast7412]

@@gemini6613 dude I'm renting a 2 bedroom home in Tucson for $675 a month you can go cheaper. That's a victim mentality dems want you to think to keep you in large democratic cities. Over pay for poor quality of life because of high taxes they put on everything

[@mikochild2]

@@toomuchtrashpodcast7412 lol no. I'm glad you found what you found, but that isn't easy to find everywhere. And in some places, those are the hidden gems. There just aren't enough hidden gems to meet the need.

[@Condeycon]

I love being in the generation that got crunched by this economic insanity. My immigrant father fell off the turnip truck, landed in Canada, dropped out of school in Grade 10 and still had his first mortgage by 22, lol. Now his generation are renting me and 3 other 30 year olds their first bungalow for 2200$ a month. Yes I would like a solution please!

[@theredscourge]

Wait awhile, then you'll own that house.

[@katiedangelo404]

so agree.... i was born in 74, told get a job work hard and you will be fine.... lol sure. no education about how to navigate in this economy, then hit with severe health issues, the government not thinking i was sick enough yet to need help.... yup.... solution please..... for now i OWN my 5th wheel, looking to own my own property, and stayed out of the credit game....

[@katiedangelo404]

anyone born 70s and later were destine to struggle

[@kensurrency2564]

@@katiedangelo404 haha, seems to coincide with the start of a purely fiat monetary system and financialization of almost everything. Imagine if markets did that with wheat … food riots anyone?

[@katiedangelo404]

@@kensurrency2564 the 70s was the beginning of the end... its when the united states started getting fat too...thanks capitalism!!! how ever of all the governments so far...id rather live in a capitalist country then socialist or communist soooooo. fat nation of silent invisible control and slavery for the win... at least im free to join the broken system or go rouge.. i love what america is suppose to be i dont love what we are becoming

[@LunarSkittles]

I'm not sure how to take "should we solve this affordability crisis" as a serious question. I've been a working adult for 2 decades now, through 3 major bursts / recessions, and the possibility of owning a home gets farther away every year.

[@Fraggr92]

Young people today get constantly accused of being lazy, of having no drive and no ambition. But really, is that so strange? How many of them have grown up watching their parents and other adults around them working themselves to near death chasing promises of a better life in the future that never came? How many of them look at the future and see that things are looking more likely to get worse than to get better? Is it really so odd that facing the prospect of having to go down the same path as their parents that so many of them seem reluctant? Who wants to play a game that they can't win? Who wants to make a bet when the odds are stacked so heavily against them? I don't think it's strange at all.

[@richardbutt1450]

@@Fraggr92 Exactly! There's really no way of winning anymore, and even the far off 'goal' of retirement is a mirage at best to most. We're well and truly fucked at this point.

[@SolarFlareAmerica]

The title being insulting is the least of it. I'm slowly becoming convinced that this channel's creator is just a fence sitter detached from any real problems he covers because he boomed in popularity during the pandemic and makes those big KZbin bucks now. Hopefully I'm wrong.

[@RainOnThursday]

@@SolarFlareAmerica it’s “economics explained” not “how to fix the economy”. Draw your own conclusions, he gives you multiple ways to look at a situation.

[@jtowensbyiii6018]

@@Fraggr92 literally every generation for the last 100 years has worked more than the last, this is the first time the previous generation pays them LESS than the previous generation in US history

[@ChristopherAbelman]

When I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

[@FinnBraylon]

Most folk find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.

[@PennyBergeron-os4ch]

The enduring US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.

[@bartlyAD]

How do I reach out to one? my assets have been struggling since 2022 and I’ve been holding on by the skin of my teeth.

[@PennyBergeron-os4ch]

Research and contact Rebecca noblett Robertsl and follow her directions.

[@PennyBergeron-os4ch]

Her name is Rebecca Noblett Roberts. Hope that helps

[@ukaszaniewski1767]

"majority of people are homeowners." No. The graph you show, says: the majority of *houses* are occupied by their owners.

[@KalonOrdona2]

Right?! I do Not want the government involved in housing, but it is INCREDIBLY FALSE to say the majority of people are homeowners!!

[@haitharu]

@@KalonOrdona2 why wouldnt you want the govt involved? basic needs such as housing, healthcare and the such should be regulated by the govt

[@somethingelse4150]

lol, statistics

[@cas343]

@@haitharu Yeah so what we'll do is create a government owned corporation that will make it mandatory for banks to lend to sub-prime (usually minority) borrowers so they can get their piece of the American Dream. Maybe call it the "Dream Act". Then when banks try to figure out how to make money off these mortgages by selling them to each other we'll insure them in case they go bust and then when they go bust we'll bail out the banks using the taxes from the people who got the phoney mortgages in the first place. Oh wait a minute

[@jeremyedge890]

@@haitharu I agree with you but the problem I feel with your statement is you should not be happy whatsoever about that reality lol

[@WiseSilverWolf]

Starter homes also get scooped up by investors which are the homes that normally 1st time home buyers would try to purchase.

[@christianmoore7109]

There aren’t enough homes to keep up with demand

[@christianmoore7109]

Investors want some but they aren’t the problem; after all they sell the homes eventually. It’s a lack of supply and low rates

[@nathanboyles6222]

@@foff3554 X

[@TheLouisianan]

It's a lot of retirees doing it too though. They want to downsize. Oddly enough, I helped build a starter home for Habitat last week that was only 1200 sq ft.

[@WiseSilverWolf]

@@TheLouisianan Alot of the homes in South Florida are only 1,200 sq ft (not including the lot of land).

[@Asukol]

“Do we want to solve the housing crisis” What kind of question is that? So it’s not a crisis if someone is benefitting from it? That’s every crisis ever.

[@santiherrera6768]

Well, to be fair. It is a problem mostly in car dependant cities. The good thing of living close to the city center is that you have to drive less. But if you had good public transportation, that's no longer a problem.

[@bigbubbles55]

@@santiherrera6768 youre incredibly wrong even rural land is spiking like crazy, people asking 2000+per acre of undeveloped land

[@luccass6793]

well, we turned a commodity into an investment for the rich and undoing that would be bad for them, so it's better to just leave it the way it is, right? It's not like the people being left out of the opportunity to own a place to live are suffering more than the investors would by halting their profits.

[@sacha9593]

​@@santiherrera6768 If you live in a city with good public transportation without owning a car it becomes even more useful to live in the center (that's one of the reasons why the suburban lifestyle is more an American thing than a European one): you will save much more time.

[@IrineuEvangelista]

@@santiherrera6768 just like in Paris, where they have no subway

[@thedreamer6930]

2000 Me: When I grow up, I want to have a cozy 5 bedroom house in the suburbs just like my parents! 2010 Me: In a few years I'll be able to afford a mortgage that will get me a small 3 bedroom house on the edge of town! 2020 Me: If I'm lucky, by the time I'm 40 I can have a double wide trailer paid off... 2022 Me: If I can pay someone to park my truck and trailer somewhere for a small fee every month... that would be great...

[@alansach8437]

Funny and tragic at the same time. But don't think it was that much different for previous generations. When I first started working you could buy a nice house for 30,000.00. By the time I could afford that they were 100,000.00! It wasn't as bad as now, but it wasn't a cakewalk either.

[@roveplanteater6738]

2005 me: when I grow up I want a cabin in the woods! 2013 me: when I graduate high school I want to save to built a tiny house 2021 me: I wanna get my bachelors so I can move to Spain and buy a small apartment in cash. 2023 me: okay I'm almost graduated, but now I can only afford a down payment on that apartment....

[@indiasohot2trot]

Lolll in a nutshell haha 😂

[@taylordavison6849]

2023 Me: They fucked us out of every opportunity we had, and they still want to take more. Maybe this bout of unfettered capitalism really wasn't that great, after all. I want a good job, a nice place to live, a reliable car, and all of my other needs met, but they'd rather me scrape the bottom of the barrel for the stuff they haven't consumed.

[@durtypan]

​@Alan Sach the sad part is I would kill to find a house worth 100,000

[@IVI00101]

The next burning question: "Is not being able to afford food a bad thing?"

[@zacharymorritt]

Here’s another viral video idea: “Why grandma skipping on her insulin in order to pay for her meals might not be the issue you think it is…”

[@WOLFZLLA]

@@zacharymorritt I got one. "Food, Running Water, and Shelter: Basic Human Needs or Myth?"

[@zacharymorritt]

@@WOLFZLLA That’s a good one too

[@zacharymorritt]

@Michelle I know - I live in Canada - but this video was quite American-centric which is why I made a joke about it, and there are still certain areas of medical care which aren’t covered, or are underfunded. Think mental healthcare, or often dental care, or pharmacological care. The privatization of healthcare does not have two modes (on or off), but instead a gradient between them, and every nation struggles with balancing it. Personally, I believe all should be provided.

[@potato1084]

@Michelle In the UK too. I hope they never get rid of universal healthcare because we’re slowly turning into the US in other sectors 🤢

[@travisschultz2121]

Sure it may be great for homeowners but not for the millions who would like a home instead of dishing out rent. Its making it extremely difficulty for anyone to make that transition. So yes, this is something we want to solve.

[@Nostradevus1]

Per the video the majority of people are homeowners though. I thought we all liked Democracy???

[@z3rz112]

I want a Lambo, like millions around me. We need to get government to solve this as well, Lambo for everyone!

[@benjaminphillips5639]

@@z3rz112 strawman much?

[@z3rz112]

@@benjaminphillips5639 Not really. Both are commodities. You could argue that housing is a necessity, but housing in a certain area does not fall in the same category. I could relocate 100km away from my current place and my RE costs would fall by about 60-90%. Will I do it? No.

[@shayperkins9630]

@@z3rz112 with what job just about anywhere that has affordable housing has crappy job prospects

[@1701Emperor]

Yes, yes we do. Houses being treated as a commodity instead of a necessity is DIRECTLY involved in the continuous market crashes we experience.

[@vrillionaire88]

This^ also, this started immediately after Lyndon Johnson passed the laws subsidizing the building market, when they control markets first they inject government influence

[@traditionaltools5080]

"Is it a bad thing? It creates a self funded retirement fund." Yep. For about one generation.

[@trayvordemonslayer]

iS tHiS a BaD tHiNg fOr HoMeOwNeRs?

[@AsbestosMuffins]

and then pensions were almost all universally closed in 2008 and 401k's suck at replacing them. GOOD LUCK EVERYBODY ELSE!

[@jon8864]

Were rising house prices in China a bad thing?

[@thewhitefalcon8539]

@@AsbestosMuffins It's almost like retirement savings are fundamentally unsustainable

[@sor3999]

And by stealing from the next generation by squeezing the supply of housing which is the only way for a non-productive asset to appreciate in value. This puts those who can't afford homes at risk of homelessness and those that can "afford" them be just one financial disaster away from losing their homes because they pay a dangerous proportion of their income on their mortgage i.e. house poor. How is it good for the economy at all for most of people's earnings just going to shelter? Oh but I suppose all those boomers can take out a home equity loan, which they still need to pay back, to buy a jet ski? Yeah that'll carry the economy.

[@Adam-vu6ho]

All I know is that the price of living has risen while wages have stagnated. Meaning most young people can just about afford to get through the month whilst renting. and owning a home seems like a distant dream.

[@mmaranta785]

But inflation is low because they don’t count housing and transportation

[@gingerlicious3500]

Maybe encourage greater development of high-density housing? Contribute to a measure that would dramatically reduce our carbon footprint and increase housing supply in one fell swoop? Just a thought.

[@azaelguerra]

@@gingerlicious3500 ah yes because because we can just do that right Gimme a second I just need to wave my wand a little and bam problem solved Gee im so glad you told all us young people to "just fix it" wonder what we would've done if you had never told us what to do

[@WaluigiisthekingASmith]

@@mmaranta785 yes they do? Like housing makes up about a third of the CPI.

[@WaluigiisthekingASmith]

Not really. Cost of living is measured by inflation and income has significantly increased adjusted for inflation. Personal income by ~15% since 1980 and household by ~30%

[@GuruMeditationError]

As a homeowner, I don't necessarily appreciate the insane growth in the value of my home. If current trends continue, it will have doubled in value in the space of about 5 years, which is simply insane. I don't need it to grow in value so dang fast. What I do need is to be able to continue to afford to live in it. Though my mortgage has a fixed interest rate, the value of my home is taxed. The tax man may end up pushing me out of my home in the end.

[@jessejamesburnitt]

I'm surprised more people aren't talking about this!

[@organizedchaos4559]

Bruh, you’re not even taxed on the full value of your house.

[@maxrice6990]

@@organizedchaos4559 But I think his point is when the value of his home goes up, so does the property tax. And the value of the home going up is not even a win for him. Sure, he keeps up with the market which is much better than someone who doesn't own a home at all, but when he goes to sell his house, he has to buy another house and its value has gone up monumentally too. The only winner in this situation is Uncle Sam, not the property owner.

[@tybooskie]

Also your home's true value to you depends on the cost of alternative housing. If you were to sell, are the houses in your desired area just as expensive. Are you planning on downgrading? Renting? So many people are stuck in their homes even though they've shot up in sticker price because so have all the other homes. Some houses that need major work are selling the same as turn key.

[@greed1914]

Yes. This is where even current owners benefit from affordable housing. You're paying more just to maintain what you already have. That increase in valuation might be ok if you're selling, but if not, you're simply paying more.

[@CosmicToaster25]

“Do people actually want affordable homes?” How far down the dystopian rabbit hole are we going next?

[@Blackdiamond2]

Last time I was this early, you could buy a house and support a family with a single job at a factory

[@jimmytimmy3680]

Good old 1950s. And yet, these old folks dare to criticize the youger generations for not owning a 600k home. Lol

[@TK-gd9td]

Factory jobs were pretty important during the industrial revolution. The equivalent today would be in tech / information industry which most engineers or computer technical vocations can definitely be middle class to afford most things. Factory jobs are trying to become automated by robots that cost pennies of electricity rather than paying a person a living wage.

[@austinhernandez2716]

Back when the rich were highly taxed and income inequality was low. Also that was only for white people.

[@LENZ5369]

@@TK-gd9td There is a difference between free public schooling (plus some on the job training) and spending several years at a place that charges the equivalent of house deposit, then working un-(or barely) paid jobs; so you meet the experience requirements for an "entry" level job in a relevant field. So no; those 'relatively well paid' factory/office jobs of yesteryear -are not equivalent to modern white collar engineering or IT jobs.

[@austinhernandez2716]

@David Lightman I'm sorry you got so triggered over me stating a historical fact.

[@AK-tx5lr]

It’s unfortunate you don’t talk about 1) financialization of housing (big funds grabbing homes) and 2) how do we actually stabilise housing prices?

[@Thalanox]

For number two, reversing the half century of mass immigration seems like a good start to get a handle on that supply and demand thing. As to number one, I don't know. My best guess for that is that maybe lowering the cost of homes by re-balancing the supply and demand would make it seem like a less valuable thing for funds to buy a ton of.

[@glowwurm9365]

He also fails to talk about the deregulation of the banking sector in the 80s which enabled banks to speculate wildly, lend more than they had in deposits etc etc etc.

[@cybersaiyan9596]

@@Thalanox how do you reverse a century of immigration? just deport literally everyone who has had immigrant ancestry? why?

[@frontlinewitness]

@@Thalanox Sounds kinda Hitler-ish

[@SusRing]

We could just force them to lower their prices by having the price be directly tied with the manufacturing cost

[@jedimastersterling1]

Wages have stagnated and rent is going up But no one is asking: "is this a good thing?"

[@keithklassen5320]

Yeah, lets find the silver lining here; rich people can use this to get richer!

[@Tony-hx2fj]

people want unlimited immigration because it makes them feel good, while this not only creates much bigger demand for housing , but causes wages in blue collar areas to be inundated with applicants while we are becoming more and more automated. Cant have it both ways.

[@mickypierson1404]

This deserves more likes

[@lpk6372]

@@Tony-hx2fj that has nothing to do with wages stagnating... But please be keep blaming our problems on the others.

[@Tony-hx2fj]

@SharkTH more congestion

[@gavintheshiba8304]

As someone who’s living at home with his parents, two older brothers, still sharing a room… YES! I WANT HOUSE PRICES TO BE MORE AFFORDABLE!

[@NaiveCynic]

Do we want people who have housing to see more imaginary money value in their housing or want folks without housing to have a physical shelter over their heads? The solution in this video, and the trend in our world, is for the former. And the rent will stay too damned high.

[@BG-bx4ey]

Rent too high? Don't rent. Need shelter? Buy shelter that you can afford. Man, this adult stuff is difficult eh?

[@AUniqueHandleName444]

The solution he seems to come to is that it's probably better to let housing become a commodity rather than an investment vehicle, vis a vis Japan.

[@adelaide7822]

@@BG-bx4ey hmmm... it is almost as if.. as if we can't afford to buy a house, and our only option is to rent or be homeless. And even though a mortage is cheaper, the banks won't give us mortgages.

[@Tamara-ju3lh]

@@BG-bx4ey just don't be poor am I right?

[@amirdiabe]

@@BG-bx4ey Easier said than done, the average income in London is £28 000. Whereas the average house price is around £400 000. There's no home, flat or studio you could get in the city, that is affordable. Even if you went for a beat down studio, on the outskirts of city, or in the surrounding counties you'd still be looking at upwards of £180 000. Because housing is soo expensive, people are renting, and because people are renting, it becomes difficult for people to save a for a house. It's literally a trap, most of the time the only way people make it through, is if their parents/ grandparents pass away, and they sell the family home. The money is then split between the kids, who can then go use it as deposits for their own mortgages.

[@TDuff7]

"Do we want to solve the housing affordability crisis" "Yes" : said the young person who can't afford a house "No" said the new home owner who will loose money on their new investment " No, there is no crisis you just need to save like we did in my day" Said the Boomer who owns 4 properties whos first house had 3 bedrooms, located 10 mins from the city which only cost less then 50 grand back in the day

[@YourMajesty143]

It's not an investment if you can't resell your assets. That's the stupidity in the logic of current homeowners, they assume rising housing costs means they'll make a profit, yet completely ignore that by doing so, they shut out most buyers. Everyone is forced into a stalemate, it's a false win for homeowners. The only thing they ensure is future generations will end up migrating out of homeownership into renting - or migrating altogether out of the country to affordable places like Thailand, Sri Lanka, Turkey, or Portugal.

[@Zraknul]

Boomer cluelessness to what they did to the world is pretty amazing.

[@sangle120]

As a relatively young person (mid 30s) who was fortunate enough to save a deposit with the intent of buying a city apartment while living with family before moving regional where that money went much further and therefore paid our house off in our late 20s and are now debt free home owners I still want the issue to be solved. Basic housing is a fundamental right, different to any commodity. This is a market failure that has occurred over decades. It should have been rectified before it got to this point, unfortunately someone has to lose out now and it still won't be the boomer who is debt free, it will be the Millennial who has recently entered the market and has mortgage greater than the value of their home.

[@edwardturpin6544]

I reject those answers. I chose something different. I chose the impossible.

[@narnasqueneth]

@@YourMajesty143 I agree with what you say but the problem is that "they shut out most buyers" isn't a problem when all you n ed is just ONE buyer who can offer you the money you're asking. As a renter, this is the reality I am faced with...

[@anonanon7278]

Many federal politicians in Australia don't want the real estate market to crash because they own too many investment properties.

[@chrisyorke6175]

A vested interest, and it's not just the Feds, unfortunately. Also, all too many politicians think there are votes in keeping house prices high . The RBA is another story. The RBA is more worried about bank exposures, so they keep interest rates low, a policy which they know drives up asset prices.

[@anonanon7278]

@Ben Passlow Agreed, but even more insidious is their massive profiteering from, and reliance on, artificially high land prices.

[@tiagoabreusilva8403]

There you go.

[@Perykvaal]

I think that at least one reason people aren't asking, "Is this really a bad thing?" is because that, for anyone who doesn't already own a home but would like to, the answer seems sufficiently obvious that there's no need to ask in the first place.

[@raulmonge99]

From paying your house in 4 -5 years to pay it in 25-30 years with a mortgage, sheeesh.

[@ordinaryhuman5645]

I'll knock my mortgage out in ~3 years (4 years including saving up for the down payment), so it's still doable.

[@michaelsmith4904]

I recall in 2006-2007 the market had gone up so much they were selling people on *40* year mortgages. That turned out well....

[@lordstarlin]

@@ordinaryhuman5645 You either live in North Dakota or are some sort of Vice President of Finance

[@davidmadej5955]

That’s America for you. Just about all major purchases are done in payment plans. Cars, smart phones, computers, furniture, etc...

[@ordinaryhuman5645]

@@lordstarlin Nope, an ordinary wage slave for a big corporation, doing IT things. I'm in WI, but I imagine outside of major urban areas in non-coastal states you'd have similar house prices.

[@jellibelli288]

only an economist could make a 23 minute video where the conclusion is "IDK, maybe people should be allowed to live in houses, that might be good for the economy I think"

[@cerebraldreams4738]

Or at least provide more affordable housing. Not everyone needs a ten bedroom McMansion for $3000/month. Some of us will be happy to pay $300 for something not much bigger than a motel room, where we have a locking door, a toilet, a shower, and a kitchenette to cook our dinners - particularly younger workers and singles.

[@geforcenow2839]

@@cerebraldreams4738 Haven't watched the video yet but what you said. Tiny living spaces for the bare essentials, like Japan for example. Micro, mini sized housing with a twin sized bed, personal bathroom (I know a personal bathroom is a luxury but much better than shared bathroom, but downgrade to a shared bathroom of course if it keeps the person from being homeless), mini kitchenwith fridge big enough for a week's worth of food and enough space for a work table. But the rich have more power than the poor so they dictate the construction projects that will be made so poor have no say other than voting. Also demand of bigger spaces by middle class to people who can afford big spaces drives poor people to rent with roommates or change cities I'm guessing. If tiny spaces are possible the space will be extremely small but livable. I know it is livable (maybe not mentally healthy long term living inside a small space but better than homelessness) because the necessities in an rv I camp with my parents is about (one car lane width) 6 by 20 feet making it 120-150 sq ft . Way better than being homeless and I heard renting cheap takes multiple roommates. Or maybe renting with roommates is cheaper overall and the small separate individual living space is a luxury all along since a shared kitchen and bathroom means splitting the cost of electrical wiring and plumbing of a kitchen and bathroom.

[@OtherDAS]

@@geforcenow2839 The rich aren't dictating. Instead builders aren't slaves who have to do what you want, but instead can make their own decisions of who to work for.

[@boarfaceswinejaw4516]

@@OtherDAS tipping every concievable scale with vast amounts of money counts as dictating in my book, albeit indirectly.

[@OtherDAS]

@@boarfaceswinejaw4516 Paying people for their work is now tipping the scales? If those wealthy people would just stop paying people for their labor then we could use the labor at cheaper rates?! That's a bold take.

[@alainnervedamaged1669]

Stay tuned for the next video: “Do we really want edible foods?”

[@AUniqueHandleName444]

In the developed world, most people are food owners with a fridge full of groceries and pantries stocked with canned goods. Prices of food going up is only good for these food owners, and edible food becoming more "affordable" can put food owners in a difficult position when they try to liquidate their positions.

[@jonathanpryzby4029]

@@AUniqueHandleName444 brb I gotta go liquidate my position on last nights dinner 😂. Jokes aside, yea you've got it right. Appreciating house prices are great if you've already got a house. Not great if you're a young guy at the start of your career ( like me)

[@youtubesucksbutts]

Stay tuned for the our upcoming series: "Iraqi and Afghan refugees, are they really OUR problem?"

[@AsbestosMuffins]

short answer, maybe because non-edible foods will lead to lower overall food consumption, but it will also lower demand for food over time.

[@Ersa0431]

@Carlos Spiceywhiener Right?

[@tylermitchell185]

Hey look no dislikes, this video must be completely balanced and informative

[@leeeyles1864]

Idk if you do know, but KZbin removed the dislikes from the plebs, content creators can see the dislikes they get though

[@tylermitchell185]

@@leeeyles1864 idk if you do know, but my comment was laced with sarcasm

[@leeeyles1864]

@@tylermitchell185 I just try to be helpful ;p

[@theresedavis2526]

Or it hasn't been viewed by a Right winger.

[@hithere833]

@@theresedavis2526 or a left winger

[@erichb4530]

YES, this IS a problem because I have children, and their salary is unlikely to be double mine when they enter the work force, but my house keeps doubling in value. So they'll inevitably be house poor unless they move FAR. Some parents/grandparents are feeding the problem by helping with down payments. Nobody needs to maximize the portion of their expenses for housing, even if it's a good investment! That does not lead to a good standard of living, and in fact can be terrible if you end up losing a job for the 2 salaries required to buy a house in big cities.

[@davidlourenco8695]

TBH it is not a good investment. A crisys and a burst is coming. Because when nobody can buy, the people who earn a living thanks to that market suddently gets fired and everything collapse. Then, house prices will reflect their true value again. We can thank all the retarded women who work in "realestate" because it earn a lot and its glamourous. Whenever you ask a stripper what are her plans, 90% say "realestate".

[@bearcubdaycare]

I hear you. My home doubled in value in the seven years since I moved here. My retirement planning didn't include "I'll depend on my house doubling in value in seven years". Personally, the boom bust bubbles are less desirable than a slower, slightly steadier increase in prices. A factor, though, is the zoning that prevents all but large lot single family housing from being built almost anywhere. In the places where allowed, townhouses, apartment complexes (nice ones), and single family homes on smaller lots, are all being built. It's just that there's at best a percent of the buildable land zoned to allow that in my county. If the law restricts supply that tightly, no wonder prices go skyrocketing up.

[@mrsnrub282]

You better get used to your child living with you until you die. That's the future we're heading towards. Also don't expect grandkids. It sucks, but that's the awful truth.

[@enginerdy]

What happens when the supply is overpriced with respect to demand, there will be a price collapse that doesn’t recover. I expect this to happen as boomers downsize and die and leave giant houses vacant that no one wants/can afford. The only thing that might counter that is these investment companies coming in and buying all the inventory, inflating property prices and keeping everyone in the rent game.

[@erichb4530]

@@enginerdy I don't see how high priced purchases to use as rentals would help, as the investor would need to collect enough rent to cover the high mortgage cost. Unless they purchase for cash of course and charge a lot less rent than the mortgage would have been

[@carlosdlguerra]

I'm so glad that not being able to get out of my parent's house is ok and that nothing should be done about it.

[@johnsmith-fk7fw]

have you considered getting a better job? in a 2 year period where they are paying even super underqualified people? no? oh right, so back to the basement you go, its where you belong

[@Yo64130]

@@johnsmith-fk7fw are you sugesting that there are jobs which payment shouldnt be enough for people to be indepent? Interesting.

[@johnsmith-fk7fw]

@@Yo64130 are you suggesting every job should pay enough for a person to support a family on? answer seriously, if you can

[@Yo64130]

@@johnsmith-fk7fw no, I am saying that every job must at least be enough for one person to be independent (afford food, housing, transportation, recreation and healthcare). That answering 'get a better job' is another 'learn coding' argument. Now you answer my last question please.

[@johnsmith-fk7fw]

@@Yo64130 think, i am answering your question by asking the opposite. its unrealistic in a market economy for someone who basically does what a $40 raspberrypi and touchscreen can do to make a wage thats enough for all those things you listed. the problem is, even before technology increases, those were jobs for kids. they were never meant to be a sole source of income for an adult. so im curious, where do you think the money should come from if a cashier makes like... idk what should we call it, 70k a year?

[@Jordan-kq3qw]

If i saved 100% of my income i could afford a house in about 20 to 25 years.

[@andrewlebedev7749]

There's your solution- require no food, clothing and shelter, and don't age for 20 to 25 years

[@jtowensbyiii6018]

@Victor Oprea at current rates an average income is just over 40k, if we pretend its 48k to make math easy and be stupidly generous then thats 4k pre taxes, average rent in the US is 1,400, already over the 25% most loans will legally allow you to pay to get a house loan, most rent is far worse than this close to 2-2.5k in areas with any income above the us average, so spending around 50% of your income pre tax on rent, before paying for anything else, so if you have the average 30% taxes most americans pay in that bracket, means you only have around 3100 a month, minus 1400 for rent, leaves 1700 for ALL other expenses, and we havent covered the car, the food, the power and gas, internet, phone bils, and thats only the required things to have a job and live, and this is ignoring healthcare which costs most Americans HUNDREDS a month, and ignores the fact most jobs paying over 25k a year required a school loan debt

[@thatoneguynextdoor8794]

I'd need 35-40. I work as a Paramedic.

[@firstname1700]

Minus interest

[@BG-bx4ey]

Or... you could buy a place that doesn't have solid gold toilets... priorities.

[@elliot__agares]

Yes we do actually want affordable homes, i think I would prefer to be able to buy a house, then having to live with my parents forever or pay 3000 in rent every month thank you very much You clearly own a house and don't care about the next generation that will need to buy homes

[@johnsmith-fk7fw]

you can already buy a house. you just dont want to save, and want to live exactly where you want. there are houses you wouldnt like that you could afford, or you could do more to earn more, but youre just a choosing beggar so you want exactly what you want and its other people's job to give it to you. lol

[@sylviethetg7598]

@@johnsmith-fk7fw >Need place to survive >Everywhere you can rent near your work is extremely expensive >Pay expensive rent to survive >No money to save >"Just save lol" You're a not very intelligent person

[@johnsmith-fk7fw]

@@sylviethetg7598 wow yeah when you lay it out like that, i guess there really is no solution! I guess just stay poor 🤗 thanks for the rent check

[@Tehz1359]

@@johnsmith-fk7fw See you're half correct. While it's still possible for Gen Z to own homes, there aren't many options. You could move to the midwestern US, which is what I'm doing. But that won't be an option forever. The housing prices in the midwest of the US are going to skyrocket soon, they already are. And it's because there is a mass exodus from the more expensive urban and coastal areas. On top of this, not everyone has the ability to just pack up and move whenever they need to. Saving is harder than ever. if you live in a coastal and urban area, you're rent is like 2000-3000 a month, plus raising food prices(especially if you eat healthy, healthy food is expensive), ridiculous gas prices, etc. Need I go on? Like I said, there is the just move option, but even that's hardly feasible because moving is quite the process, and requires a lot of saving. I'm able to do it because I have help, I'm a poor college student who works a minimum wage job. You're flippant and unapathetic attitude is why civilizations collapse.

[@KnightofEkron]

@@johnsmith-fk7fw people like you are why this world deserves to get cleansed

[@m1k3y48]

“A majority of people are homeowners” *Angry young person noises*

[@raghuvenkatesan6792]

Cries in hk

[@HooverVilleify]

It's also not true. Most people don't own a home.

[@BlackishBear]

And I took that personally!

[@DaveSmith-cp5kj]

@@HooverVilleify I personally disagree. There are many young people who own their own home. The issue is most young people who can't afford their homes live in places with extremely high housing costs like NYC or Los Angeles. Obviously it doesn't make sense for someone on a budget to buy a home there. The problem is, many millennials have been indoctrinated that they have to live in an expensive city to have a high paycheck when that absolutely is not the case. Some of the highest paying jobs for example have been in farming, in places where you can buy a huge property for a fraction of the cost of an apartment's yearly rent in a big city. EDIT: A lot of ignorant comments down below. I'm a millennial myself that grew up in Silicon Valley and left. I still live in CA, less than an hour from LA. You all have to stop having the close minded idea that the city rat race is the only way to live, because it isn't. It's like the gold rush, you don't make the big bucks doing what everyone else is doing looking for gold, you get rich by doing the jobs no one thinks of but everyone needs. Farming is one of those things. Everyone has to eat, which means all those dollars from people trying to be big and rich are being funneled right into your pockets. I got to love how by me just mentioning the opportunities people hurting for housing can have by just living outside of city limits, there are actually some people angry at ME for considering the possibility. Okay lol. Clearly EE is right that there can't be a housing affordability crisis, especially evident considering people here can be so picky. I'm reminded of that certain spongebob episode: kzbin.info/www/bejne/b4rMinZmqMl-jac

[@Leonhart_93]

Probably not true for people in their twenties, but nonetheless the reality is that most people do indeed own a home.

[@Tigenzero]

In my area, there's a perception that large corporations are buying up houses to rent, effectively turning entire neighborhoods into rental hubs. By doing this, they remove property supply from the market, causing market inflation, as well as have a majority hold on the rental market.

[@Ersa0431]

I actually live in a house that was converted into a 8 bedroom rental.

[@MrLowbob]

don't know where you are living but i see similar things in hamburg germany. i rented a row home here. half of the others are for rent too - all by the same company. the other half is still owned by old people and from what i hear from them all of these were private houses 10 years ago and they already got offers for their houses from the company.

[@han090]

Definitely happening in Ireland right now, so very much could be where you are.

[@noneofyourbusiness4830]

That's why there should be a progressive property tax. Except for the house/apartment you actually live in.

[@michaelmullin3585]

@@MrLowbob I own my modest home free and clear. Since the Plague hit, I have received, on average, one cold call each week from realtors wanting to buy my house. Interestingly, the cold caller is always a foreigner. Usually Mexican or Oriental.

[@leifharmsen]

When a house builder can not afford a house to live in, we have problems.

[@daviddunsmore103]

Yeah, like if a farmer goes hungry, then something is seriously wrong.

[@1985ThePedro]

Yeah, I am a construction worker. My wife makes the same money as I do. We save every penny we can. We cannot afford a home in this market, and if we look far enough away from where our jobs are (2hr+ commute range) then we can find some homes that we could afford, if we didn't have to pay the extra fuel and maintainance costs for that type of commute (as well as being away from home 16 hours a day instead of just 12hrs a day for work, not counting all the events for our kids)

[@1985ThePedro]

Oh, and in order to keep the kids in a school district that's worth getting a diploma from, we just can't move to those cheaper areas anyways.

[@ddandymann]

@@daviddunsmore103 You have no idea how often that has been the norm through human history.

[@Mr___f]

@@ddandymann I mean...yea? It was extremely common under Authoritarian and Monarch regimes.

[@Umbreon-ln7fe]

I'm saving 95% of a full time salary and am getting further away from owning a home now because the average house near me earns money faster than I do (by no means a major city or expensive neighbourhood). I definitely don't see a problem with this situation.

[@noahpokeemon6503]

That's absolutely horrible, I wish you luck dude

[@fcasias7]

I felt like I was the only one, good to know I'm not. I'm fortunate in that I can save a lot of my income, and I would still need 20 years of savings to pay off a home.

[@gravijiga]

And at this rate by the time we save enough, that home will be worth 4x more and we will be at square 1

[@Pushing_Pixels]

"Destroying the hopes and dreams of a large section of the population, and damning them to a lifetime of paying unaffordable rent until they can no longer work and inevitably become homeless is fine, as long as they are a minority while the majority benefit from the situation and are doing just fine." - A depressingly large number of people.

[@Mr.Nichan]

I've sometimes wondered whether the Chinese government thinks this way.

[@Rollin8.0]

Don't worry mate, pretty soon all the boomers will die and their millennial kids will sell the spare properties off to buy Tesla's, hookers and blow, and it will all balance out :)

[@dekippiesip]

@@Rollin8.0 some of the older boomers are already reaching the nursing home stage, meaning their homes are coming to the market.

[@porcudracului]

Because you live on the net or in your head. Any talk has to be followed by a plan. Then act on it. Then results will come. Just talking yourself into paralysis/fear doesn't work.

[@TrollEater]

@@Rollin8.0 Pretty soon all the boomers will die and their millennial kids will rent out the spare properties in our stupidly broken rental market to buy the same Teslas, hookers and blow. Nothing will balance out.

[@Mikestheman2b]

“Are high home prices a bad thing? No way, it helps people who are wealthy enough to be homeowners get more money without having to do anything!” Ah yes, because they need the help more than people who don’t own a home.

[@Mikestheman2b]

@@marceiiopaz-criptocapitaii6898 stop it spammer

[@apc9714]

Well a vote is a vote...

[@Mikestheman2b]

@@apc9714 what do you mean?

[@Hoops590]

One home per person or family is the solution.

[@ralz97]

@@Hoops590 in countries with an increasing population, yes

[@thanksihateit.353]

It's not only a young person problem. I'm 33, a lorry driver in the UK. Feel like I'm chasing my tail getting a large enough deposit together.

[@shahrumali8640]

If you're under 45, you're "young"

[@ipadair7345]

You're young if you're under 70, This isn't the cretatious period.

[@milkncookie]

What is a lorry?

[@PiOfficial]

@@milkncookie a large vehicle used for hauling goods with a gross weight over 7.5 tonnes

[@milkncookie]

@@PiOfficial like a mini semi-truck. Got it! Thanks.

[@Ragnarok927]

I think there needs to be an exponential tax on property taxes depending on how much land is owned. People owning a home should be encouraged, people or companies owning multiple homes that dont have people living in them and holding onto them as speculative assets should be frowned upon.

[@ninjaman717]

Georgism. It was a thing in the early 1800's in America. Went away(sorta) in the late 1800's.

[@travisissoocool]

There should also be more incentive for mixed use dwellings and medium/high densities residential. These sorts of building codes are very limited right now, resulting in sprawl and land scarcity in job rich areas.

[@bluemarlin8138]

@@travisissoocool Or give tax incentives for employers to move away from large cities so people stop concentrating there.

[@organizedchaos4559]

@@bluemarlin8138 you know infrastructure cost money right... the cities are funding your suburbs

[@calebmclarnon6211]

More taxes is rarely the solution. I wonder what would happen to rent if that happened....

[@roylangston4305]

It's very simple: if you own land, you are on the escalator; if you don't, you are on the treadmill that powers the escalator.

[@ianandersen265]

Depends on what land you buy. In some places, it is better long term to be a renter. With land/home ownership, you are responsible for all the maintenance yourself, and the amount you pay could easily overcome any appreciation in value you experience or savings you get from not renting.

[@roylangston4305]

@J J Owning a home never ruined anyone's finances. GOING INTO DEBT to BUY a home could ruin someone's finances, but that's the risk you take when you jump for the escalator from a precarious place on the treadmill.

[@roylangston4305]

@@ianandersen265 Land does not require any maintenance (landscaping might, but it is an improvement), and you don't lose money owning land unless you borrow at too high an interest rate to buy it: "The most comfortable, but also the most unproductive way for a capitalist to increase his fortune, is to put all monies in sites and await that point in time when a society, hungering for land, has to pay his price" -- Andrew Carnegie

[@paladain55]

@@ianandersen265 "Could easily overcome any appreciation in value you experience or saving you get from not renting." I hear a lot of people use this to justify their lifestyle but it is simply not true.

[@BlueonGoldZ]

So you're saying that because I own real estate, someone else is using their financial power for my benefit? Why didn't someone tell me this? I've been working 10-12 hours a day when I could've just been chillin' at home?

[@username4294967296]

Is it a problem that a certain group of people (home owners) have become a lot wealthier without actually producing any added value? Only people from that group could be wondering about the answer.

[@samuelrowbotham6322]

The current housing policy is just welfare for rich people

[@Kinkle_Z]

Yes and that's wrong. It's time to change the system. We need a "Government of ACTION" to fight for working families.

[@samuelrowbotham6322]

@@Kinkle_Z not when there are more voters profiting off this middle class welfare scam than there are aspirant homeowners and renters who have to suffer the consequences.

[@tomlxyz]

Non productive assets appreciating in value is a general economic problem because it ties up investments in doing nothing instead of being productive

[@zachnelson6376]

Midwest checking in. People with two trucks in the driveway often have as much money tied up in the trucks as they do the house

[@lonle6506]

Yeah but those trucks are 40 k

[@LikaLaruku]

Outskirts of Seattle here, average suburban home has 4 cars. Kids never move out. Seen a couple with 7-9, definitely need to start making bigger garages.

[@LikaLaruku]

7-9 cars that is, not kids. I feel like the local weirdo for only having 2 cars.

[@JLchevz]

@@lonle6506 well, some even more

[@christopher.96]

@@lonle6506 sometimes. But some trucks are 70k now.

[@rugierro]

So he accidentally came to the conclusion that house flippers are good for the market actually. You know, that hot trend that's driving up the cost of housing and stripping the market of entry level units. Yeah, not sure I agree with you on that.

[@Ghost_Electricity]

Growth-based economic thinking that externalizes the environmental costs. I thought the point of people owning homes was to give them a place to live that is their own, not give them a growing asset class.

[@gorkyd7912]

Yep.

[@kensurrency2564]

Shelter is a basic human need so … yes.

[@Iamwrongbut]

That’s how you look at it. But the point of the video is that many people look at it as a real avenue for growing/maintaining wealth. After all, a house is usually the largest asset that people pass to their children at death. Not saying this is morally right, but that’s kinda the point of the video - to make you think about that.

[@Ghost_Electricity]

@@Iamwrongbut what I'm trying to point out is this orthodox economic thinking is part of why we are in an ecological crisis and to get out of it we must embrace degrowth and a consideration how our activities impact the environment.

[@Iamwrongbut]

@@Ghost_Electricity I agree.

[@LucarioBoricua]

Not solving this crisis would lead to the economy collapsing as more than one generation is denied the right of shelter.

[@bradhaines3142]

right of shelter? where is it assumed to be a right?

[@kayseek1248]

@@bradhaines3142 UN Fact Sheet No.21, The Human Right to Adequate Housing www.un.org/ruleoflaw/files/FactSheet21en.pdf

[@MaxieTheMax]

@@bradhaines3142 in the Universal Declaration of Human Rights and International Covenant on Economic, Social and Cultural Rights. Ya know, two international documents the United States has signed.

[@eVill420]

@@bradhaines3142 hey let's discuss this really divisive topic called ''right to water'' next

[@samuelrowbotham6322]

Absolutely, people are just not bothering to work or have families now because there is no hope at all, especially for the young.

[@Tarvos0]

Its almost like making something everyone needs to live to expensive to get has a negative effect on the whole economy. When 60% of a person's earnings aren't going into the same asset they need to not die, it's so weird that they can buy more things they don't need and more money flows as a result.

[@damlakacmaz8743]

my brain couldn't work out this comment

[@dudono1744]

Doesn't as much money flow if they spend 100% on necessities ?

[@talete7712]

@@dudono1744 yes, but it moves the economy because that money is being spent buying stuff from businesses instead of going in the pockets of a few, most of the time old, landowners

[@dudono1744]

@@talete7712 makes sense

[@TomH001]

The fact that a one year's salary was enough to buy a house says a lot. The view on whether a house should remain an appreciating asset in my mind does not seem to correlate to the fact that the price has already grown beyond what it ever should be.. I am a house owner and ( I know its a complicated issue ) I really think the price should stay around that one year salary mark. I am aware that means my house would be worth considerably less , but just because the prices are where they are now does not mean they should remain nor does it mean that it is how it should be..

[@robertt9342]

Material costs and the soft in labour force causing a decline in specialty trades wouldn’t make that possible.

[@andreaberryman5354]

Normal market rise has always been $10k a year, which is not impossible to save for. These past 15 years, the market was monopolized buy ibuyers gobbling up small affordable homes (some 22 million), to sit EMPTY and create an artificial "shortage" to make prices skyrocket. So the global real estate was fully monopolized by giants like Zillow.

[@EmnM2010]

Wage stagnation in a lot of areas is also not helping much. In the USA, the same 2-bed, 1-bath house may cost 1M on the west coast, but only 10K in the southeast. Hence, what we've seen in my area is west coast folks moving in droves to the Carolinas to take advantage of the "cheap" real estate that's just barely affordable for the people already living there. The American South is still struggling with self-righteous attitudes concerning how much an individual deserves to make given how they make a living, and we still refuse to unionize, so wages are already lower here. The average resident is finding it harder and harder to compete, and affordable areas to live are increasingly hard to find as people from wealthier parts of the country move in to buy land and housing on the cheap to rent back to us for ludicrous prices. It's a problem, and we can't exactly solve it by kicking people out. :/

[@steffenjensen422]

The price of a home should reflect the amount of work that went into it. If all the workers who built it put in a total of one year worth of work, then the house should cost about a year worth of their wages.

[@Monasaurus_Rex]

“Is this a problem?” What kind of question is that? How is most of the next generations ending up homeless not a problem?

[@Zoltan1251]

@@matthewmcdonald1301 what?.... no way.... its maybe 20% cheaper but you are still paying off mortgage to somebody else not to yourself making yourself poorer every day

[@Zoltan1251]

@@matthewmcdonald1301 paying of your own mortgage is investing 100%... and you have place to live

[@paradiseexpress3639]

@@matthewmcdonald1301 Rent is not cheap. Paying off a mortgage is basically putting money into a savings account. Rent is nothing like that. When you pay your rent you're putting money into someone else's savings account

[@evanroberts2771]

Instead of getting an entry lvl job somewhere straight out of school, kids today are spending 4-5-6 years at university getting degrees for jobs that have zero vacancies.

[@Vanilla.coke1234]

@@matthewmcdonald1301 Rent is often more expensive than mortgage payments. People just can't afford the down payment because every cent they have is going into their rent

[@JCesarH]

You somehow always make me feel bad about not being wealthy. You got this attitude like "it's not that complicated, you should've known". But that fact remains that me and my girlfriend, both working full time earning an average wage for our age, are unable to get any loan for an average priced house.

[@aikotitilai3820]

That's just capitalism gasligthing you

[@JackHagar]

I used to be a major advocate of the, “work hard and stop crying” mentality, but as time goes on I’m realizing just how ridiculous things are starting to become. At this point, you have to be extremely wealthy to buy a home, and it’s insane to expect everyone to be extremely wealthy

[@Kinkle_Z]

Live in a van in a Walmart parking lot for 4 years. Save $3000/mo for 48 months. Put that $140,000 down on a median priced house in an up and coming yet still relatively inexpensive neighborhood. Pay off the balance as soon as possible. You're welcome.

[@kuru4467]

@@Kinkle_Z Live in a walmart parking lot van for four years to afford a house.. HAHAHAHA

[@chasenovak122]

@@Kinkle_Z this shouldn’t be necessary, if this is what you have to do to survive in the system, then the system is inherently broken.

[@BreakingDullel]

As a young person soon graduating from university, most likely with a well-paying job and still no chances to buy a house in the foreseeable future, this is a frustrating problem

[@christianmoore7109]

I’m in a similar situation

[@christianmoore7109]

Not quite graduating yet but I definitely see the problem on the horizon and it’s deeply frustrating that people act like it may not even be a bad thing.

[@romusa9204]

You said well paying job , buy the definition it means you should afford a house , there’s the so called starter homes

[@jimr3286]

How can your job be considered a well-paying one if you won't even be able to buy something as necessary as a house?

[@billr5842]

@@jimr3286 Depending in where you live, houses can be ridiculously expensive. Where I am from, the houses have sky rocketed because of tech people migrating. The houses are significantly higher than the average income and even with a decent paying job as a new graduate, it is still not possible to buy a house right away. This issue is becoming worse and worse with no signs of slowing down. More people are now homeless and prices keep going up.

[@fefniir]

Yes, we do want affordable housing! Everything else is a long-winded excuse.

[@youtubesucks1499]

As a contractor in the United States, tell me how I can build affordable housing and still make a profit? Land isn't cheap neither are raw materials and framing. So how do I build a 1500 sf home for $80 a sf?

[@alansach8437]

@@youtubesucks1499 No one is blaming it on you.

[@delovely1577]

​@@youtubesucks1499it really won't matter when your inventory just sits empty

[@youtubesucks1499]

@@alansach8437 I never said they were. I agree, housing prices are insane.

[@notjimpickens7928]

@@youtubesucks1499 simple, you dont charge 80k-100k extra for ""labor"" that doesnt happen at all. i know this aint every contractor, but ive seen contractors basically scam land owners out of alot of money for next to no work, and then they put a lein on the building to draw it out further so they can renegotiate their pay to be above market standard.

[@spencerkimble3824]

You missed a HUGE aspect which is important here in Colorado, maybe elsewhere: banks aren’t lending for less profitable home builds and are preferring higher end properties to finance. The only new homes going up are Lux or near-lux

[@briannadickson2884]

Cardboard boxes with granite countertops

[@TonesBalones]

It is most efficient, capital wise, to build a single McMansion on a large plot of land than to build a dense apartment complex. In fact in most cities it's illegal due to zoning codes. Affordable housing cannot happen under capitalism.

[@youtubesucks1499]

@@TonesBalones Really? As a contractor how do you plan on getting a 100 unit apartment complex built? It cost millions. And they are being built. Who is going to put up the money,? You?

[@victorcode2075]

The downside to this for young generations is psychological. So many people in my generation have switched off, they don't care about their future any more because they know that no matter how hard they work they can't have a home to raise a family in.

[@redcardagain7]

Underrated comment. Throw in people who have basically given up to live off welfare and maybe chose to be homeless n BOOM. You have a generation/large group of people who got screwed by the previous gen

[@Justathought81]

I have a few younger friends from work who have had to move back in with parents multiple times, that would have really screwed with my head as a youngster especially considering they work 50 hrs a week with a significant other also working and can barely afford an apartment together. I paid 545$ a month for my first place in a shady neighborhood but it was mine, the RENT just for an apartment is now 1800$ for a 1 bedroom, how the F are these kids supposed to afford that.

[@davidlourenco8695]

@@Justathought81 The issue is ALL the people want to live in a few places. It create a demand who translate into sky high prices. It's not their fault either, all the businesses are in those places too. The govt should tax businesses (who are healthy) who operate in such areas and create lower tax brackets for low population areas to force businesses to go there. Thanks to new tech and the economy of services, we can offload big cities. Massively increasing standards of living for millions of people.

[@YesYourRight]

Yes let it crash.

[@cody3247]

@@redcardagain7 Yep. I'm no longer spending anything, going out, etc.. I'll do my part to dismantle the economy one day at a time by simply working, buying just enough to cook food, and that's it (although I'm soon ready to quit that even and not even contribute to that)... I believe the Millennials in China call it "lying flat".

[@josephlee9496]

As a 22 year old approaching the end of university, this video terrifies me 😰

[@AdmiralFroggy]

Your first mistake was going to college.

[@m1k3y48]

You'll rent for a few years, maybe up to 10, then probably be able to afford a down payment on a home. College isn't a mistake unless you can't use your degree, ignore that other guy.

[@---cr8nw]

Don't let it terrify you. Come up with a plan. It doesn't have to be perfect, but you've got to have some kind of a plan. If you buy a modest house by the time you're 30, you'll have it paid off by the time you're 60. The earlier you can do it, the better. That's less rent you pay towards someone else's equity. If you move to a new house, just follow the same timeline. If you do this, you'll be able to retire comfortably someday with no rent and no mortgage. Just run the numbers in an online calculator or talk to a mortgage lender. In all likelihood, a mortgage is cheaper than rent (for comparable properties).

[@---cr8nw]

Also, don't get tricked by low interest rates. It doesn't matter how much house the bank says you can afford. Buy a house that you KNOW you can afford. For example, your current rent +/- 10%. I'd rather buy when prices are low and interest rates are high than vice versa. You can always refinance if interest rates go down. You can't renegotiate the sale price when average home prices drop.

[@barbmelle3136]

Life is one goal at a time, you can have a fine house, exciting travel, build a business, etc. You just cannot have it all at once. Not understanding that is why so many people get frustrated. The first 10 years of home ownership I had a rusty old car in the garage, and didn't travel or dine out much. Eventually nice cars, nice vacations, and all the other extras were added to the mortgage free real estate. Don't be terrified, be smart and patient. You will outperform the boomers if you keep your wits.

[@rapom61393]

I think the biggest issue I see around me (Baltimore / DC metro area) is a shortage of more affordable NEW housing. It seems every new development that goes in is bigger and more expensive than the last. I would be interested in the statistics of 3 vs 5 bedroom houses being build over the years. The average house keeps getting larger and larger, thus more expensive. Lawmakers could easily force a more even supply of smaller, more affordable homes in comparison to larger more expensive ones, but they never will.

[@bract62]

They aren't building those small houses anymore

[@joseffischer5812]

@@bract62 Once you go in on building a house, kitchen, bathrooms, etc, adding more SF/bedroom space is very cost effective, the cheapest part of constructing the house is the bedroom/livingroom space and adding a bedroom increases price significantly

[@LucasFernandez-fk8se]

Even if they are building gaudy new big homes that’s fine it means the old crappy homes aren’t as expensive. Move to a 1950s ranch and let the people who would’ve paid 800,000$ for that ranch pay 800k for the 5 bedroom 5.5 bathroom with the 3 car garage instead. Even luxury housing helps add supply and take buyers away from affordable homes. Look at San Francisco. They added no luxury housing to their supply and their crappy houses are 1.6 million dollars

[@alecfranklin3827]

I mean if they are building it, someone must be buying it otherwise the builders wouldn’t be making money though

[@rossderer6154]

You left out a hug factor in the issue of rising housing costs. Large equity firms are buying up housing at an increasingly rapid pace making regular prospective home owners have to complete and force the price way up. Not everything should be a free market or a market cooperation should be allowed to enter into. How can I compete with endless buying power?

[@sor3999]

He did. It was the mortgage bonds he mentions which made income/housing not trend with each other since the 1970s.

[@Woahlookitthemoon]

Let's hug it out yall

[@GITAHxgCoo]

Build a mud hut and keep building onto it until it's a castle I'm not kidding. Modern houses suck anyway. The equity firm fears the monke.

[@Woahlookitthemoon]

@@GITAHxgCoo probably not up to city code, but hobbit huts are my dream neighborhood

[@lepkr6095]

@@GITAHxgCoo based and mud-pilled

[@mintyaroma987]

For those of us who were looking at buying our first home within the next few years, boy are we completely screwed... I've gone backwards substantually during lockdown after constantly losing jobs and having to dip into savings just to get by. On top of this our rent increased!

[@Fraggr92]

That really is the real kicker. Costs of living keep increasing, but wages dont rise at nearly the same rate.

[@ZodiacEntertainment2]

@@Fraggr92 This has been true for a REALLY long time. COVID exacerbated many of the issues our economy already had.

[@lucasbune]

The front half of this video is fairly interesting, but the second half is a confusing mess. First you suggest that the crisis isn't bad, giving loads of arguments, then you suggest that the crisis *is* bad, but go into way less detail on a smaller set of arguments. Total whiplash. The two sides are never compared, and the video gives no hint as to the switch. The eventual conclusion is that solving the crisis is better, but the title is the opposite. What on earth was all that? Hello?

[@austinbyrd4164]

He's playing devil's advocate. He does this all the time on his channel.

[@Xqvvzts]

Wait, presenting pros and cons of a situation and potential solution is a "confusing mess" now? Have the mainstream media already succeeded in beating nuance out of people's heads?

[@JackFou]

@@Xqvvzts The problem isn't nuance but the structuring of the video. The section starting at 15:30 is called "Is this a problem?". The arguments that follow seem to suggest that the answer to that question is "no". Appreciating housing prices make home owners richer over time and provide security and wealth for retirement. This segment is then followed by a section titled "the solution". Considering that we've just gone through a whole bunch of arguments for why rising housing prices are not in fact a problem, it's a bit strange to now be talking about a solution to the problem. What even is the problem exactly at this point? We've just heard that rising housing prices are a good thing, not a problem. Now in fairness, he does say at the end of the second to last segment that the counter arguments are explored in a different video and he doesn't want to go into those to avoid dragging out the video longer than necessary but I cannot help feeling that spending maybe 2-3 minutes on the counter arguments would have not been a particularly big deal in a 23 minute video and would have made the train of thought much more clear.

[@fluidthought42]

@@Xqvvzts It's called framing. When one side of the argument is strawmanned for example it's not really an honest weighing of two sides of an issue, but merely lip service made to resemble even-handedness.

[@cat8088]

@@Xqvvzts yea they have lol u ever been on tiktok? its sad.

[@nicholasfield6127]

I just think it's absolutely f-ed that a human necessity is viewed as an investment. That's a huge problem.

[@Jack-he8jv]

gaddafi made it a human right, they killed him.

[@lastempire7302]

In Vancouver or Sydney, you'll need to park two Buggatti Veyrons in front of a typical middle class house to make your "assets/liabilities" evenly distributed.

[@JB-yb4wn]

Not in West Vancouver! 🤣

[@lastempire7302]

@@JB-yb4wn Yah... you need a private jet park outside your home for that.

[@JB-yb4wn]

@@lastempire7302 LOL! Or a transgalactic starship! 🤣🤣🤣🤣

[@c.r.j.4033]

You're just not gonna talk about how bad not having a home is for people huh?

[@overduetax]

And he NEVER mentioned the actual systemic racism in preventing people of color from buying homes or getting mortgages from the beginning. He totally ignored the bigger picture of the greatest middle class wealth building era in american history and how it was founded on denying black/brown people from owning a home!

[@miepmaster25]

Chill out dude you can just rent or move to some subpar EU country like spain where houses are dirt cheap in comparison

[@miepmaster25]

@@yyyg4892 yeah why not amiright

[@arod077]

@@overduetax That is so true. People forget the land that was promised to the black people after the civil war for that exact property be taken back from the state and given away to WHITES.

[@ColCaffran]

@@overduetax He's not American, that situation is basically only an American problem.

[@darius2640]

middle class house in the suburbs with a lawn, backyard, 2 car garage and a white picket fence is my biggest unachievable dream

[@jhfdhgvnbjm75]

House anywhere is my biggest unachievable dream.

[@EJ3001]

How is this unachievable?

[@psykotisyinc]

Same here man

[@dr.vanhellsing]

It’s called move to Detroit and buy a bullet proof vest. You well live the dream with a vest on.

[@trillmixin6999]

bruh at this point ill settle for a 500sqft 1 bed but even thats expensive unless you plan on building it yourself

[@skyaudi7416]

🎉 Genius. I propose that we put mortgages on oxygen next.

[@EinBienenliebhaber]

Next “do we really want affordable water?”

"A majority of people are homeowners" *Cries in swiss* - owning a home has been out of reach for most people for decades now. Unless you inherit one.

[@kkon5ti]

The graph he misquotes doesn’t even say that at all loo

[@Alche_mist]

On the other hand, Swiss rents tend to be rather affordable, at least in comparison with common Swiss paychecks. Unlike most of the locations where housing crisis runs truly rampant and neither homeownership nor renting is within reach of general populace (which in turn leads to stuff like in the video with 10 people in a quite small flat just to share the insane rent).

@@Alche_mist that is true. But then again both our paychecks and our prices are insane compared to most of the world

[@kkon5ti]

@@MEHOLE what

[@GBlockbreaker]

And then there's Germany on the Swiss border, house and rent prices are about on the level of Switzerland but paychecks are about half of what the Swiss earn, if you don't own a house and have to pay rent then you better find a second or third job or work in Switzerland

[@Sky-yi9nc]

In short, if you own/able to buy a home, you will be able to continue growing your wealth. Everyone else is SOL.

[@JinKee]

bitcoin blew the doors off housing this year

[@saleemcarr9501]

Well good luck getting on the next bitcoin

[@cscirpoli]

There is always a cheap asset that becomes expensive that you can participate in

[@evennot]

I wouldn't call it "growing your wealth", property taxes combined with price growth in some places ensures that you won't be able to keep the house in your retirement years living off savings. In NJ 2.5% tax rate with house price going up by 30% every 5 years (approximately), you'll have to pay your initial house price every 20 years, as if it's a never ending mortgage Not to mention upkeep

[@tytrvd]

🙌🙌

[@rubidot]

I'm still very unconvinced that inflating housing prices is good for the homeowner that lives in the house. That homeowner can only access that money if they sell their home or take a mortgage on it, putting them at risk of losing the place they live. If the owner doesn't want to risk losing their home or move to a less desirable place, the effect of increased prices is to just increase property taxes. Increased housing prices is bad for people who want to live in houses. People who are rich enough to value homes primarily as an investment opportunity are not the people that need financial support and protection.

[@devononair]

YES!

[@robertbrown2706]

Most people change jobs often. And the fact I own my home and the value has gone up significantly definitely benefits me. When I move at least some of the money I spent living there comes with me. It's not true for everyone, and certainly doesn't help the person who wants to live in the same house their entire life.

[@_Ekaros]

@@robertbrown2706 Only if the place you are moving has gone up less. Otherwise changing properties go up as they aren't that fixed but instead percentage.

[@robertbrown2706]

@@_Ekaros Nah, that's an oversimplification too. Because I have a mortgage and most people do. A larger down-payment next time because my current house has gone up in value and I sell for a profit will save me a bunch of money on interest over time and make sure I avoid paying mortgage insurance (if you have less than 20% down typically). Having an asset worth more is always an advantage vs the alternative- as long as you are willing to sell it at some point. If you are never going to sell...it's just extra taxes with no benefit.

[@andalongjacket]

I'd love for my house to be less valuable. Should be rising slowly with inflation and wages, not spiking to double what I paid for it within a few years. Starting to feel priced out of my own house and neighborhood by property taxes.

[@benjamindavidson22]

Housing prices are unlikely to significantly decrease until there's a substantial increase in housing supply. In the USA , there's a shortage of millions of housing units, and construction isn't keeping pace. The constant demand for housing, coupled with population growth, means that even a slight price drop attracts numerous buyers who quickly absorb the available supply. I'm considering purchasing affordable houses in 2024 and possibly venturing into stock investments. When is the best time to enter the stock market? Some people say it is profitable , but others say it's risky. Any advice?

[@monicawill5]

Consider investing in stocks especially during a recession . While recessions can be tough, they can also offer good chances to buy low and sell high in the markets if you're cautious. Just remember, this is not financial advice, but it's a good time to think about buying stocks since having cash on hand isn't always the best option.

[@suzannehenderson5]

You're right! With the help of an experienced coach, I made some changes in my investments. I started with $321k, and now I have more than $750k by investing in stocks, ETFs, and bonds. I think housing prices won't go down much until there are more houses available.

[@emiliabucks33]

Mind if I ask you to recommend this particular coach you using their service?

[@suzannehenderson5]

My advisor is Natalie Lynn Fisk, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@emiliabucks33]

Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé

[@Vanilla.coke1234]

If the ability to buy a home comes from already owning a home and not income, then there's an issue. No and's, if's, or but's about it

[@arod077]

Exactly. One of the fastest way to have wealth is property. Whites have had properties for centuries in this country so they were already ahead of a lot of other races. I'm not trying to make this about race but it is hard to talk about this country's history and not talk about it.

[@BG-bx4ey]

Oh, there's an issue. People are morons. That is all.

[@Vanilla.coke1234]

@@BG-bx4ey Shut up[

[@Noseihtam266]

Your sentence started with an "if" so there is technically an if about it 😎

[@richardhanes7370]

@@arod077 you're kind of right. I did inherit my house and infact, my entire family has inherited their own houses. But it has to start with someone, I have my grandfather's house! It's not about race, it's about the cultural differences that are holding minorities back. It's a culture of victim hood and racism.

[@LordCumberdale]

"What if we all just behaved differently" seems like a kind of cop-out solution for an economist to propose

[@Septimus_ii]

It's very anti-economic theory too

[@w0mblemania]

Agreed. The problem was just hand-waved away.

[@catch.22]

This guy is kinda inbred in general. He agreed with several chinese propositions and knows little of foreign issues.

[@ailyn2253]

@@gwgere “any solution” is intellectually lazy and an illogical, emotional impulse.

[@ninjam77]

Yeah tehy talked yout Japan for example but didn't even touch upon how Japan achieves stagnating housing prices. I think there are a few main factors, some of which the US and other Developed countries can take note of. 1. Japan Bulds far more houses. Building houses is easier faster and cheaper due to good regulations that allow for building and developing new housing fast and without restrictions like single family zoning that artificially limit supply. 2. Demographic stagntation/decline. Japans population is shrinking this is certainly having an impact on housing prices but the negative effects of that probably far outweigh any positives. There are some good news on that end though as Tokios population is still increasing and prices there still remain stable so that's definitly not the only factor at play.

[@aseefismail4048]

Yes. The answer to the question, “Do we actually want affordable houses?”, is yes. In the video, the crux of the argument against is that rising housing prices are good for people that already own homes. Even your graphic to show “most people own homes” doesn’t really support that they do. Large, large portion of rent. You didn’t consider population sizes. And your definition of “advanced economies” is basically just “countries where there are white people”. Romania? Really? But not China, India, S Korea, Japan, Singapore?

[@AUniqueHandleName444]

I'm not sure why you would put India and China on the "developed non-white country" list.

[@txdmsk]

If you insist on having affordable housing, then you should try to move to Venezuela. Real estate is dirt cheap there! Otherwise, you should want to have prices that reflect the value of the item you wish to purchase.

[@JasonCloseOK]

Rising house prices are not good for people who own homes. Rising house prices are good for governments who fund themselves through property taxes. The average person wants to live in their house for a long time, and increase in home prices is simply an increase in property taxes. Most people never actually "cash out" of their real estate investment (their primary home). Any appreciation is just rolled forward into the next purchase, so the increase doesn't really do anything. The reason home prices increase is because governments want them to increase due to property taxes.

[@ツルのために]

As well measures like this are generally about people who live in owned homes. Rather than people who own homes themselves.

[@herefortheshrimp1469]

@@AUniqueHandleName444 Okay you have GOT to actually leave the house once in a while if you seriously think that.

[@dirtycelinefrenchman]

You rightly point out that if things continue on the current trajectory we'll reach a point where only the very wealthy will be able to own homes before concluding that the best thing to do about this -- wait for it -- basically nothing.

[@tuele4302]

If the price is right, then an exchange will be made.

[@x--.]

Okay! I thought I was going crazy because that is how I interpreted the video as well. Insanity.

[@krayos13]

That's neoclassical economists for you.

[@loturzelrestaurant]

@@tuele4302 BritMonkey and Some-More-News covered this topic epicly, if i may uncalled-for say.

[@briansmith8898]

@@cyropox8235 Exactly, he's advocating for a change in attitude among homebuyers, and for the resulting change in mindset to cause prices to stagnate. I don't see that actually happening, but it's a nice idea. He uses Japan as an example of this mindset, but that's a different level of population density than in the US or Australia.

[@paulhanson5164]

It seems to me that economies and societies do best when everyone can afford the basics and everything else is aspirational. You work a bit harder for the nicer things in life. If half the population can't even come close to affording the essentials you'd best watch your back and hope you or your loved ones are never in the wrong place at the wrong time.

[@alecfranklin3827]

What is “everything else” out of curiosity?

[@paulhanson5164]

@@alecfranklin3827 Why don't you tell me what you consider to be the basics, it should be a shorter list than everything else.

[@smartgames1393]

This channel never ceases to amaze me with how it can fundamentally misunderstand so much of economics

[@YourMajesty143]

The guy is a pro-capitalist espouser that pushes conservative talking points, what'd you expect? You can find EE videos constantly getting debunked in r/BadEconomics. Unfortunately, his badly researched takes are seen as gospel by young and uninformed viewers.

[@tuele4302]

It amazes how some people fail to understand the normal tendency of individuals to protect their assets.

[@tuele4302]

@@YourMajesty143 Ah, yes. Reddit, a place of enlightenment.

[@RiseOfAnarchism]

@@tuele4302 if protecting your investment means others live on the street or are forced to rent for the rest of their lives then your investment should fail

[@tuele4302]

@@RiseOfAnarchism You are not entitled to other people's properties.

[@numbers0580]

"This all turned around, though, in the 1980's." I've lost count how many topics from which I heard similar statements about that year or decade.

[@mitchellstarrenburg3860]

It's when Regan and Thatcher's policies came into effect.

[@tigerwest4748]

Shortly after the end of gold standard

[@ryanleonard4034]

@@mitchellstarrenburg3860 The problem with Reganomics is you finally run out of public and taxpayer goods to privatize.

[@wadesuhr]

Fiat currency in the US began in 1971. That change was neccessary to keep the US out of trouble as imports vastly exceeded exports as the US produced less and less goods. The gold standard had to go away and the next to last step of the central banks plan began.

[@austinbyrd4164]

@Wade Suhr we produced less and less goods because we turned away from the free market and became a consumerist society.

[@joshnabours9102]

The real issue is the relationship between average wage, home prices, and inflation. It doesn't matter if homes increase in value if the average person can still afford them.

[@kkon5ti]

Also faulty city planning

[@angrydragon4574]

And compared to the 80s the prices of homes went from being paid off in a few years to a few decades. There is a problem when home prices increase tenfold in comparison to wages.

[@joshnabours9102]

@@angrydragon4574 Yep. Good homes in the city were 17,000 dollars in the 80s and now if you find a home in the city for $170K it is either burned down, a partially built house with no drywall or just the land with no home. Minimum wage was about 4 dollars in the 80s and now it is 5 to 15 dollars depending on if you're a waitress or waiter and what state you are in. A 4 fold increase in base wages with a roughly 15 fold increase in house pricing is going to cause affordability problems.

[@joshnabours9102]

@@economicsexplained6459 your channel was created 2 months ago. Please delete it and stop pretending to be Economics Explained.

[@jakobholgersson4400]

It does matter because if homes rise at the pace of wages and not inflation, then that in practice nullifies a countries economic growth.

[@MidnightBreezey]

The problem is that homeowners think they're entitled to endless above-inflation appreciation on their property, so they see any efforts to slow housing cost inflation as an assault on their perceived rights. This creates a dysfunctional housing market where homeowners have a financial incentive to block new construction and keep the housing supply artificially low in order to inflate their own home values, even though the gains are imaginary because you can't cash out the value of your home without simultaneously buying right back into the same inflated market. Not to mention that taking this attitude to its logical conclusion just results in a reductio ad absurdum where every house in the world is eventually worth (effectively) infinite dollars if the value just keeps endlessly appreciating for all eternity. Until homeowners get over their entitlement and stop seeing a house as an investment (which historically is not the way it was seen until recent decades) nothing is going to change because they will block any attempt to fix the issue. Which means we aren't going to see the situation really addressed until a large majority of people living in the west are not homeowners...which will happen in a few decades if trends continue how they're going.

[@gravijiga]

I agree. They all think they are going to sell their homes for millions to a generation that is broke. If anything, corporations will buy up all the housing and keep it to perpetually rent it out. Controlling whole communities and lives. Raising the rent with no end then lobbying the government to make homelessness illegal. The weak and injured will be thrown in for profit prisons also owned by huger corporations. Hoping something changes soon. This housing situation is unsustainable unless you are an evil crop

[@mariolis]

Its not entitlement Its just good old humans acting in their self interest In economics we ASSUME this rather than BLAME people for it

[@lucazani2730]

​@@mariolishe is not blaming the people. Of course people have to act in their personal best interest. He is blaming the policies that made it possible in the first place. If you'd give me a possible investment so efficient and secure as a house is I would take it immediately, BUT I still think that the government should make it impossible in the first place, via taxation and removing privileges on houses

[@AD-dg3zz]

As another commenter has pointed out, continually increasing home values isn't actually that good, because their property taxes will keep going up. Even if their mortgage is fixed or even paid off, it's not sustainable in the long run. But not enough homeowners seem to have pieced this together.

[@alecfranklin3827]

I mean plenty of homeowners have already purchased homes at inflated prices, so is it not unreasonable for them to expect a return back? Also any situation in which inflation out paces home appreciation puts the homeowner at a negative equity which is not good. If inflation is at x% then homes at least need to appreciate at x%+1% while wages go up at x%+2% otherwise some gets screwed. And at that point we’re just making biased value judgements on who deserves to get screwed

[@wesmessss]

An affordable housing economics argument without any mention of zoning regulations that limit the variety of housing types and sizes, forcing larger single family homes...

[@Tony-hx2fj]

@@mayaanonymous1077 with 20 cars per home gumming up the streets.

[@leion800]

On top of housing corporations, are openly gouging people.

[@theodoremurdock9984]

@@Tony-hx2fj That’s not what happens when you allow natural, medium density urban development of the type you only see in old downtowns in the US, but see absolutely everywhere outside the US, Canada, and Australia…what you get is highly walkable neighborhoods where it takes less time to walk to a restaurant or a grocery store than it takes to drive to one in the US, where people buy fresh what they’re going to cook that day, then walk home and cook it…you get the kind of places that you experience if you go on vacation to Europe. Here in the US, we zone for skyscrapers or single-family houses, so you’re either too cramped, or so far away from everything that you have to drive through stinking traffic to do anything.

[@IL_Bgentyl]

Texas doesn’t have them

[@Spankee99]

@@theodoremurdock9984 but muh neighborhood character!

[@whatever3554]

Investment groups (or foreign investors) will buy houses and rent them out for infinite money, locking everyone out of purchasing power and skyrocketing rents.

[@trillmixin6999]

also decreasing available supply

[@HR15DE]

thats pretty smart. money attracts more money lol

[@Dota2funny]

Mostly Chinese. As a hedge against the gov in China

[@SkySong6161]

Not mostly Chinese. (Though don't get me wrong, they're around.) Mostly rental firms (yes that's a thing, they're the primary cause of the 'recovery' of the housing market after 2008) and slumlords. Who'd have thought that having corporations and investors owning 25% of all single family homes in a city would do horrific things to housing and rental costs there?

[@gTr4yr4y]

Look up Home Partners :)

[@jeremyquentin42]

1) A majority of people are home owners. 2) Many homes are appreciating. *Fallacious conclusion*: A majority of people own appreciating homes. Homes in appreciating areas are more likely to be owned by investment companies. So theoretically, 1 and 2 could even result in only one person benefiting from the appreciation.

[@drkhyron]

We need to have an extra tax on any person or legal entity that owns a home they don't live in. Also make the tax proportional to the number of homes owned so that it makes it increasingly difficult for anyone or corporation to own large numbers of homes just to rent them back to others. It would also give incentives to banks that foreclose on a home to sell it as quick as they can.

[@Junglelove20mm]

I think that tax should be limited to single family or duplex houses only. An exemption for people who build new houses for a set number of years just to add more supply. If we create policy that discourages building we make the problem worse.

[@drkhyron]

@@Junglelove20mm I would agree that details like what you proposed would have to be added to make my idea an actual working policy. We would just need to be careful that added exemptions aren't just used to allow corporations to continue buying up homes.

[@_Ekaros]

@@Junglelove20mm Also I'm really thinking those sort of houses should have some sort of sin tax if they are anywhere near downtown. Basically something that goes up as cities grow thus forcing them to be replaced with more dense buildings.

[@jwill391]

Some jurisdictions implemented 'empty homes' taxes to attempt to curtail buying homes as speculative assets. However they don't attempt to prevent rentals.. not everyone wants to own a house or apartment. British Columbia in Canada is one example.

[@alecfranklin3827]

Plenty of people actually depend on their one or two rental properties for retirement though. And there are people that want to rent rather than own, particularly individuals that are t gonna stay in one location for a long time frame or those who don’t want to do maintenance work of a house. Also your idea punishes people who buy a home for their family members like their children or their parents etc..

[@paubatet5687]

I'd argue if the housing prices keep getting further away from salaries, younguer people won't be able to boy a house until they are 50, which means that they won't have kids, which means the end of humanity or even worse, it would be bad for the economy.

[@Dota2funny]

Good news is that population will peak in 2050 and start declining for decades

[@Thed538dhsk]

@@Dota2funny HAHAHAHAHAHA population is declining because those in richer countries with good hopes for the future have less kids. Poorer your country typically more babies born hoping 1 will find hope of a better future. If young people in developed lose hope for homes guess what, more babies born just like poor villagers in remote rural villages do hoping 1 will hit the lottery. The best way for population decline is make the most people rich not make less people have homes then you just have homeless babies born by the dozen.

[@Thed538dhsk]

I like how the end of humanity itself is preferable to the economy being bad lol

[@z3rz112]

Don't see a problem in this tbh. Issue is that you want to get the real estate in a given area, not just real estate. Maybe you should reconsider your standards and/or location, if you find yourself on a road you've described?

[@Dota2funny]

@@Thed538dhsk no, population growth is declining in south america too, population growth is not tied with poverty, is tied with education level/access for women

[@Smudgeurfudgemuffin]

EE: We don't want house prices to crash and put borrowers underwater Me: That is a sacrifice I am willing to make

[@rod4309]

This. The majority shouldn't suffer so the rich can get richer.

[@keveinkevin4422]

@@rod4309 Why would the rich take out mortgages?

[@Natasha-tu5qs]

The problem with that is that a very large proportion of the population is doing just that. If they suffer economically, that's inevitability going to have an impact on the whole economy and possibly cause another recession/depression.

[@jacobsnedaker8993]

@@rod4309 borrowers = anyone who can't afford to buy a house all at once, sooooo

[@lonesnark]

@@Natasha-tu5qs In terms of houses, every dollar lost by home-sellers is gained by house-buyers. So no, falling housing prices by itself will not cause a recession. There is a correlation between falling house prices and recessions, but the recession always started before the house prices fell.

[@TheSterlingArcher16]

As someone who is looking to buy in the next few years & shaking my head at the crazy high housing prices, we definitely need affordable housing. Treating general real estate as an appreciating investment just means the older & financially established extracting wealth at the direct expense of people just starting out.

[@KingBobXVI]

It's a classic rug-pull, just on a much, much larger scale and longer time frame.

[@alecfranklin3827]

But many older folks are looking to leave it behind for their children and grandchildren as well