Prepare For The Biggest Event In The Last Decade

Ken McElroy explores the current and future landscape of the real estate market. He highlights the significant opportunities and challenges in the coming years, including a predicted shortage of 5-6 million housing units, the impact of fluctuating supply and demand, and strategies for capitalizing on market disruptions.
Ken has a real estate strategies podcast! Follow your favorite platform each week.
Apple Podcasts: apple.co/3jDqftx
Spotify: spoti.fi/31GUDwW
Follow Ken on social media at: x.com/kenmcelroy
• • •
Be sure to click the bell to be notified as soon as the next informational video is posted!
Visit Ken's Bookstore: kenmcelroy.com/books/
•
ABOUT KEN:
Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and has an upcoming book: "ABCs of Buying Rental Property: How You Can Achieve Financial Freedom in Five Years." Ken is a Rich Dad Advisor.
Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.
Ken's company: mccompanies.com/
•
DISCLAIMERS: Any information or advice available on this channel is intended for educational and general guidance only. Ken McElroy and KenMcElroy.com, LLC shall not be liable for any direct, incidental, consequential, indirect, or punitive damages arising out of access to or use of any of the content available on this channel. Consult a financial advisor or other wealth management professional before you make investments of any kind.
Although Ken McElroy and his affiliates take all reasonable care to ensure that the contents of this channel are accurate and up-to-date, all information contained on it is provided ‘as is.’
Ken McElroy makes no warranties or representations of any kind concerning the accuracy or suitability of the information contained on this channel.
Any links to other websites are provided only as a convenience and KenMcElroy.com, LLC encourages you to read the privacy statements of any third-party websites.
All comments will be reviewed by the KenMcElroy.com staff and may be deleted if deemed inappropriate. Comments which are off-topic, offensive or promotional will not be posted. The comments/posts are from members of the public and do not necessarily reflect the views of Ken McElroy and his affiliates.
2023 KenMcElroy.com, LLC. All Rights Reserved.
#kenmcelroy #realestate #realestateinvesting #Investing #MarketTrends #HousingShortage #SupplyDemand #PropertyPricing #RentIncreases #DistressedAssets #ConstructionLoans #OccupancyProblems #HousingBubble #InterestRates #ConsumerImpact #MarketDisruption #MigrationPatterns #AffordabilityIssues #InvestmentStrategies #PopulationGrowth #CommercialRealEstate #ResidentialProperty #EconomicIndicators #MarketAnalysis #RealEstateBubble #LoanToValue #RentalMarket #SupplyChain #MarketOpportunity

[@KenMcElroy]

If you got value from this video and would like to support our work, please consider sharing. the only way we know what kinds of videos to continue making is by the number of views. So if you want more videos like this, share it with a friend!

[@floydchusset3143]

Ridiculous America will be renting forever, the yield on bonds have decreased especially on the long end (30 and 10 Y) indicating that the demand is still there even if the supply remains huge showing a preference for safety. I'm still at a crossroad regarding whether or not to liquidate my $138

[@majidcoper]

Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.

[@ryanthompson8256]

There's no housing shortage , I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000

[@ashwinaditi1039]

Please will you be kind enough to share the details of the analyst that helped you?

[@ryanthompson8256]

Actually its a Lady. Yes my go to person is ‘LAURA GRACE ABELS’ a easy and compassionate Lady. You should take a look at her work.

[@okaydamian]

I have about $225k liquid in savings which I plan to put towards becoming a homeowner, but based on the current high prices on real estate, do you suggest I hold from buying and look at dividend paying stocks instead?

[@Charlesman_T]

excellent share, just copied and pasted Karen Lynne Chess on the internet, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal

[@ElizabethKing-qu2ob]

With Banks at the risk of failing it could be an indication of an economic Recession which could be devastating .I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

[@AndersonCallaway]

I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience

[@annaj.osorio]

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K

[@CharlotteLangley-sn6hi]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@annaj.osorio]

Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.

[@Selenastafan]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@tahirisaid2693]

I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.

[@KentBrono]

Do you mind sharing info of the adviser who assisted you??

[@KentBrono]

I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.

[@ozzyfarinas]

The same happy talk I heard right before the 2007 housing crash.

[@alicianieto2822]

Except it didnt really crash. Bankers were rescued. Housing prices went down a bit but nowhere near the old levels that can be afforded in 5 years and one salary ( let alone my parent's time levels...)

[@amitpadgaonkar8830]

Right...However, the fundamentals weren't wrong, the sentiment was. You can see that the market recovered from there and went off the roof making it unaffordable for a lot of people including me.

[@AmeriGlobal]

Real state and stock market climbed very nicely from 2009 to the present time.

[@TheOriginalLugnuts]

Yup. Hes most likely heavy in real estate and wants to keep people thinking prices are going up so they keep buying. Hes delusional and wrong.

[@blumbergh801]

All of the real estate investors I know who bought in 2007 through 2012 are millionaires now. Just say'n

[@MAJOR-D]

There is no housing shortage if anything there two many and the problem is folks can’t pay 3000 to 5000 a month for a house or rent payment because the numbers don’t work people can’t spend 60/70% of what they make on a place to buy or rent , currently wages simply don’t support payments that high

[@matthewjames1172]

there is too much speculation and fraud.

[@Rracing401]

Yup all rigged

[@CECABROS]

what about the massive inflow of immigrants coming into the US? Last year 2023, over 3 million illegal immigrants entered the US and just alone in the last 43 days, 1 million illegal immigrants have entered the US, that's over 23k immigrants everyday. Where are they going to stay at?

[@absolutecrypto95]

My point exactly there is no upside housing is still overpriced

[@ydoIstillcare263]

I'm confused. If there wasn't a housing shortage, then landlords couldn't demand $3k to $5k for rent. If there wasn't a shortage, which is what you are suggesting, then renters would have more homes to choose from and landlords wouldn't be able to ask for such high rent.

[@Rei_naldo]

Housing shortage! 😂 Inventory keeps piling up, and new development inventory keeps adding to it. New developers have been caught reporting lower inventory than what they actually have. They might report 10 house available but when you go to the development they actually have 80 houses. Also, some developers are stopping construction at 90% completion to avoid paying higher taxes on a finished home thats going to sit on their books for long periods of time. In other words, developers are manipulating the numbers they report to make it seem like there's a shortage. Everything is in a bubble now, credit, stocks, car market, loans, and housing. Not to mention, full-time jobs are rapidly declining while part-time jobs are lightly increasing.

[@zuser12345]

plus don't forget the 20 million homes hitting the market over the next decade and half as boomers pass.

[@ljubastajic4372]

"Some markets may fall" is the new narrative.

[@PeterKontor]

At a certain point, inflation is not going to go down, and people will adjust to higher prices. We were all millionaires in Poland at certain point in history.

[@moondar8660]

by adjusting you mean multiple families in the same house?

[@danw7864]

How can single family homes not be in a bubble when values appreciated 50% in 2 years?

[@KunalBalani]

It’s not house appreciated. It’s the currency that was depreciated and all assets increased in price not just housing. It takes few years for wages to catchup. This is very common in rest of the world. Probably US folks are experiencing it first time in their lifetime.

[@frankme9862]

Wages have been going down for decades. And not all assets went up. Free money was a scam. Federal notes are a fraud.

[@martinsulak6366]

@@KunalBalani It is both. Cost of everything went up but house went up much more than the rest. There really is a bubble, at least in some countries.

[@mg-by7uu]

They added 40% to the supply of USD from 2020-2022. Houses went up 40% during the same time period. Coincidence? I think not

[@cbpuzzle]

The 30y mortgages essentially locked in prices to go up higher at 3% throughout 2020. Now owners sit on the mortgages and wait for inflation to eat it, removing supply. They'd be absolutely dumb to sell the houses because rates are not going to zero again.

[@davebolduc94]

@kenmcelroy Video is on point. I am a Broker and investor in CT. We are seeing the same. Built ~11k housing units / year pre-2007. Now about 5k. CT construction has not recovered like many other parts of the country. There are less than 3,500 housing units on the market in the entire state at any given time right now. This market dynamic is going to exist for a while...

[@Eden639]

Thank you for great content. Your videos of you alone are much better because you have so much knowledge and credibility. The ones with your wife seem like she is in command and you just agree with her, which I know is not the case but the way they are done makes them look that way.

[@leeroach3381]

Very helpful Thank you for sharing

[@SigFigNewton]

It’s not clear to me that there was underbuilding post Great Recession more than there was overbuilding pre Great Recession. How do I convince myself of what the number of completions should have been?

[@CliveBirse]

Keep in mind that during the 80’s people were encouraged to save due to the interest rates. Right now there’s very little incentive to save because those who are saving are watching those who are reckless taking it in. I’ve been trying to save for a home and it’s been discouraging to watch prices continue to not budge because there’s people willing to get into a mortgage where they’re paying 40% of their income. It’s insane.

[@91ScottieP]

To balance out your real estate holdings, I suggest investing in equities. If you're cautious, even the worst recessions can present fantastic buying opportunities. Additionally, volatility can produce fantastic short-term purchase and sell opportunities. This is not financial advise, but you should buy immediately away because money isn't king right now!

[@mikegarvey17]

Yes I concur, I've been talking to an advisor for long now, mostly because I lack the knowledge and energy to deal with these ongoing market circumstances. I made more than $220K during this slump, demonstrating that there are more aspects of the market than the average individual is aware of. Having an investing counselor is now the best line of action, especially for those who are close to retiring.

[@ThomasChai05]

@@mikegarvey17That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?

[@mikegarvey17]

'Gertrude Margaret Quinto' maintains an online presence. Just make a simple search for her name online.

[@Grace.milburn]

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 resume.

[@dhowto3005]

Thanks.

[@bellarocky7396]

Good Works Ken❤....One point to clarify this, the wealthy do save up enough to buy their next assets. They do not save as a means of building wealth or as a retirement strategy...

[@BrenoRodrigues259]

The rich see economic crisis as a garage sale, that’s why investing right now will be the best decision

[@KirbyMike100]

BITCOINS: IS ONE TRUE DEMOCRACY THAT HAVE EVER EXISTED IN THIS WORLD❤

[@jhh70]

Tampa has gotten crazy, 900-1200 sqft homes priced at silicon valley prices it's crazy.

[@jeremybaldwin2840]

Prices just keep going up and consumers will magically pay those prices on 50k/yr incomes! 😂 what a joker.

[@jaminmartin3147]

Great insights Ken. As always

[@adamshelton6598]

Well done, Ken. I think this is pretty spot on.

[@MgtowRubicon]

Never own or loan in HOA. NEVER.

[@NA-ce7vr]

Why?

[@chrisyang05]

Good luck with that. Most of the homes built in the last 30 years have HOA.

[@drumdad1242]

Ken, love your work. Thanks!

[@MartinD9999]

Idk….there’s enough data showing the “shortage” is based on listed houses on the MLRS, but many builders don’t list all their available houses for sale on the MLRS, but on their separate platforms. So the numbers are underrepresented if it’s based on MLRS data. This is enough for me to seriously consider the alternative possibility that the shortage isn’t really there. I still invest heavily into Multi and Single Family housing, but I have an open mind about the “shortage”.

[@AprilRae19]

Fascinating insights! The explanation of the supply-demand dynamics and how they're set to explode in 2024-2025 is particularly eye-opening

[@tyranix9785]

The problem is: The price of property is way to expensive in Big Cities to build anything.

[@AA-rc4zr]

Thanks for the post. Your analysis seems to make sense on the paper. However, if the incomes are not going to skyrocket, who’s going to pay for skyrocketing houses or the rents?

[@DewTime]

Ken is a smart guy but doesn’t he have an incentive to say housing will always go up, similar to a realtor? Doesn’t he run a fund where he takes investors money? What’s more likely to get people to invest, telling them housing will go up or telling them housing will go down?

[@charlieerickson5524]

Would he be running a fund if he didn’t believe/know what he’s saying?

[@DewTime]

@@charlieerickson5524would a realtor be a realtor if they didn’t believe / know what they’re saying?

[@peterjoe5110]

He's not here for your money. He's just here to educate people.

[@catcat7835]

​@@peterjoe5110Not all people are dumb.

[@DewTime]

@@peterjoe5110 how can you possibly conclude that? Think about it, if you’re running a multimillion dollar fund and you’re always on the look out for investors, what’s the best way to attract them? I’d argue that the single best thing you can do is start a KZbin channel so people can see how knowledgeable you are and so others can spread the word about who you are. You don’t even have to pay to advertise your name, KZbin does it for you for free! You just have to put in the work to make good content. Naturally, some people are going to wonder how they can invest with someone so smart like him. Well eventually they’ll figure out he runs a fund and boom, he just gained a client. But if he says on his KZbin channel “the housing market will go down or at best stay stagnate for the five years” that’s going to turn away potential investors.

[@cbell01100]

Ken, thank you for your information. Watching you for years. I just cannot believe you have never shared Americas greatest realtor secret.. Replacing mortgage with a HELIC, 1 for 1.

[@bavila22]

I recently finalized the purchase of a new construction home north of Denver, securing a 4.25% interest rate along with $22,000 in incentives. Given Denver’s challenges with migration, there’s a growing trend of relocation to the quieter, rural cities both north and south of Denver. Supporting this, our new neighbors include a family relocating from Cali, and a Denver police officer has settled two doors down.

[@rcolucci09]

People can’t afford a home or rent now. How will they afford even higher rent?

[@torsten6777]

Get a second job, get roommates, move to a smaller place, move to a bad neighborhood, etc. etc. etc.

[@joefunk76]

What the other guy posted. Work more to get less in return, ad naseum. The people who run this joint are not your friend. “It’s a big club. And you ain’t in it.” 😂

[@tsuipingho8946]

It's time to consider moving back with parents, siblings......My friend has just cleaned up the garage and put in windows, ventilation unit and better flooring for his son to move back!

[@MuscleMan500]

Roommates

[@johnmay9699]

Last 15 years of low rates, free money was one time anomaly in human history. Inflated prices you see around you are based on this anomaly. Deflation is not going to take prisoners.

[@dustinmarquand5301]

Tight marker around twin cities, but i just don't see how prices can kerp going up without incomes going up . Not even close to equal.

[@KunalBalani]

Builders eventually build apartments and lower quality homes to match affordability. Single family homes will become rare and less common.

[@dustinmarquand5301]

@@KunalBalani I agree about the apartments and twin homes etc. hard part around here with our climate and building codes to build an affordable starter home. Mostly 2nd tier and fancier if it's a single family.

[@JWFitness1]

Prices go up because the purchasing power of the dollar decreases. Look at Zimbabwe and Venezuela.

[@hs41069]

Lower interest rates. They will go down soon again.

[@FirstLast-lh9iu]

The data of how many new housing units is needed is based a house is completely depreciated and evaporates after 30 years. In reality, most houses built since 1900 or even before still exist. There may be a renovation/rehab boom to bring millions of old houses into shape and on the market, because it’s a lot more affordable than bringing a new house online from scratch. In either case, buying power and living standards of the middle class keeps falling since beginning of the 1970s and single family homes may not even be the future. Multi-family units, and much smaller units than they used to be, plus heavily subsidized by the government may be what’s coming

[@richardl6188]

Thanks for the video, Ken! I agree that in the next couple of years, we will see the market continue to go up or remain elevated, because of the money going into infrastructure and the money going to defense companies restocking our armory. However, when that money eventually dries up, we will see another event like 2008. By then, I will have enough money saved up to take advantage of the drop in housing prices. I've been through the recessions of the 1980's, 1990's, and 2000's, and each time I've been able to invest in real estate at the bottom of each of those markets!

[@ricardorivera2047]

Institutional investors have taken over single family properties. It's harder than ever to buy single family and multifamily properties. I'm now considering getting into buying land and new construction for that reason.

[@absolutecrypto95]

What's the benefit housing hasn't dropped interest rates high maybe for people that have money

[@amirsalehian2797]

Ken, it's a tough call whether to wait and see how 2024 unfolds or take action now. There's a lot of uncertainty in the market, especially regarding the US government's response to potential recession or inflation. With their considerable debt and the pressure to maintain economic stability, it's possible they may opt for inflationary measures like increasing money supply. However, the risk of waiting is that you might miss out on potential opportunities or find yourself caught off-guard by sudden market shifts. It's a balancing act between caution and seizing the moment.

[@mg-by7uu]

Oh yeah they're definitely going to cut rates to zero faster than ever before and print an ungodly sum of money. But lending will be so tight at that point due to the CRE crash that it won't matter. I'm with Kenny though that QE will eventually inflate prices even further

[@TheRancherAndTheWife]

What a weird market weve been in here in Idaho. Expensive stuff still trading with rates sticky at higher levels.

[@AmeriGlobal]

Some cities in Idaho still have lower median house prices than those in California, Oregon, and Washington states. The "low cost of living" (low wage) states are going to have outsiders with money moving in. Too many bargains.

[@ashog1426]

I wanna join ur crew. Solid advice leading me to my first MU investment.

[@ajsreptiles6170]

Realto in SW Florida here. Inventory is high! But there a ton of great deals for income producing property. Rental demand is high.

[@uncommonsense5876]

One point I do not see discussed in this cycle is the prices of commodities during these cycles. The LOW price of commodities during late 90s and early 2000's added to the rapid building of housing that took several years to flood the market adding to the crash. NOW we see near record high commodity prices. Combined with high finance rates and builders who fear a 2008 repeat?? The shortage will continue 15 to 20yrs at minimum

[@8rest897]

Hi. Your market explanations are great. I've learned so much. But I do have a question. How much higher can rents go if the renter only has so much money? Sure I would love to raise the rent to 50k a month for a 1 bedroom apt. There's a mismatch of target market. Any insight would be much appreciated . Thank you

[@tomateeee33]

Why the demand will keep strong with a high interaste rates?

[@namzito22]

Best vid you’ve put out

[@drewbart1886]

Single people: learn how to live in your vehicle. Save your money. Watch the prices fall

[@mariusbuciuman307]

See how the narative is changing from :Housing Bull market forever, to flat prices, to maybe some price declines to greatest buying opp coming? This time is not different

[@alexmack956]

It’s different because you are expecting it this time

[@mg-by7uu]

​@@alexmack956people don't expect it though. They think it's a "strong economy" and "resilient labor market" with a "soft landing" thanks to the media's same lies as last time

[@besnkinic]

​@@alexmack956lots of people expected it last time, but they weren't commenting on social media about it. I wrote a college paper on the upcoming wave of foreclosures before 08

[@joefunk76]

RE markets have become highly bifurcated. Yes, the 95% of locations that 5% of people want to live in will continue to get walloped. But the 5% of locations that 95% of people want to live in haven’t even crashed yet, and they may never. As a buyer, I hope I’m wrong about this, btw. 😢

[@chrisyang05]

I'm a bit shocked that most comments here are actually against this video, maybe KZbin shouldn't have suggested it to the detractors? 24 years ago, I was also extremely angry about housing unaffordability and thought the tech bubble would "crash" the properties markets too, obviously it didn't happen. One day, I just stopped complaining and decided: "if I can't beat them, join them!" and bought a modest condo and I never looked back. Many people don't realize this: not only do developers have to build houses to local governments' standards, they also have to build roads, landscapes, and half of the neighborhood too, and they all add to the price of a home. And if a new home is expensive, you can bet the existing homes will be too because their locations are even better. Yes, developers do go bust when their assets are under water, but that also means fewer housing starts and less supply. We're also not hearing about foreclosures because many mortgage holders are on 2~3% interest rate while unemployment is at a historic low. That's why even the state with most people leaving: California, is currently experiencing a house price uptick because few people are selling. Most home owners will tell you they'll cut discretionary spending in an economic downturn before they even think about selling their homes or default on mortgage. There's no fair or unfairness to it, it's just human nature. I hope I can persuade just one of you to believe there will NOT be a "crash" and tune out on the doomsday predictors.

[@forthelulz8085]

This bubble isn't caused by a new emerging technology that would completely change everything around the world.... SMH... it's caused by a government that is spending more and more and more money. Their monetary policy is that we can print our way out of any issue. Well that just isn't true. Commercial real estate will cripple banks very soon, auto loans have been WAY over extended as well, Credit card debt is at an all time high, and adjusted for inflation our housing prices are at an all time high. If this isn't a BUBBLE, nothing is. Then just to make things better, BRICS is actually working. They are doing everything they can to end the Petro Dollar, this could cause WW3 because it would completely wreck our monetary policy because our money will be backed by air.

[@siaosanna]

If not a crash, it will at least be flat for awhile. Monetary policy is currently pulling money out of the economy and J Powell is showing no signs of stopping. All flags are red except the labor market. Stock market was banking on a rate cut but it hasn't come. As lending standards continue to tighten, and the money supply is reduced, there will be nothing to keep pushing assets higher

[@user-nj5st3ho9t]

I do not invest the real estate, but I agree with you. The net price of the real estate never decrease in whole country unless the population decreases. It will not happen near feature, but the current affordability issue affects birthrate issues significantly, so real estate market probably collapses several decades later. Probably all houses in the small towns would become mere abandons, and a lot of houses in the city keep loosing values, and the value of the some housing in the big city are very high.

[@chrisyang05]

@@siaosanna Totally agree. I may add that properties went down in 2008 sharply and then sideway for 2+ years but most homeowners dealt with it by simply ... staying at home. Even with 18 months of inflations, job cuts, and "oversupplies", the properties market is still quite resilient, I don't know why people think another 18 months will actually "crash" it?

[@Ride-Fly]

What started all this is low interest rates and relaxed lending. They have been building like crazy for 10 years how could there be a shortage? Rich Illegals?

[@robertbb1683]

Hey ken McElroy, I wonder what you think of the Australian market. Here in Australia, we have a heavy undersupply of rentals, so much so that rent has gone up 50 percent in some areas in a matter of months. We are entering a rental crisis amid a global financial crisis at once.

[@ntsonice7064]

Prices need to come down by 40 percent! I will never buy another house, especially with interest rates the way they are!

[@avasdv]

Weird question but one rarely thinks about how banks work. They only have so much to lend right? They get deposits from people (a really dumb idea) and they can lend a multiple of that. Makes sense. So they should be in the market for (credit worthy) borrowers as much as a borrower is for a lender. So when their cash runs out (does it run out?), they have to get more deposits (loans from retail customers or rather "customers") or resell their assets for cash and as they approach running out, i assume they'd raise rates just to ration their remaining stock. Is that how rates go up? There's much i don't know. There's much I feel like it's taken for granted. There's much I think we only want to see from one perspective. It's actually really easy to get money from Banks I think.. compared to 150 years ago if I'm not mistaken

[@FloridaCoatingsMiami]

which bank do you like using for your refinancing?

[@Rottingboards]

He likes zero banks. He uses other rich people's money. He finds doctors and lawyers that want to invest in something solid.

[@torsten6777]

Florida is done with move-ins. People are now leaving Florida: it’s too expensive, incomes are too low, and insurance impossible expensive.

[@QuadTap]

I live in one of the fastest growing counties in America in Central Florida. There are three new apartment complexes opening this year within 2 miles of where I live. And countless new home subdivisions.

[@johncooksey79]

Arkansas is #4 acccording to United Van lines.

[@mikek.9980]

Just crazy talk..... There is a three unit flat in my area and owner asks for $1,800 for each unit. Guess what? Only the basement unit is rented ( probably for less) and the other two are vacant for about 4 months now!! These owners have no shame and are overtaken by stupidity, plain and simple........

[@thetecshow8849]

If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance but if you want to make your money work for you...prevent inflation

[@huinyavaina]

how about "return to office " policy and massive layoffs of those, who stay at home? NYC metro suffered a sizeable decline in 2020-2021, but with people coming back to office, they gained everything back and keep on going, while areas like NC, AZ, etc. are stuck at the same price levels

[@amirsalehian2797]

Ken would you wait to see what would happen in 2024 or would you pull the trigger now and buy in 2024?

[@KennethLeeAtLGA]

According to a report from MetLife Investment Management in 2022, within a span of just seven years, up to 40% of single-family rental homes could be owned and controlled by Wall Street entities. This situation could potentially present challenges not only for regular renters but also for the broader economy.Aug 19, 2023

[@moondar8660]

Oh Kenny, where oh where is the wage support for "massive" increases?

[@matthewjames1172]

the truth is...there is no housing shortage.

[@GerardoHernandezF87M2]

Yup, artificial supply and demand

[@nouvang1260]

Share where you are getting the data

[@rjrickenbach4346]

HAAAAAAAA. Maybe if you kids stay in your parent's basement.

[@shengyu668]

Tough words won’t make you really tough, but most time the opposite.

[@fuqutube]

There most certainly is in my area!

[@jeffersonblackmon]

Affordably is the bottom line. Ask the retirees in Florida who's insurance has doubled and tripled, or has been cancelled.

[@joefunk76]

There is no law that requires homes to be affordable. College and retirement were once affordable, too, but now, like an owned home, those are luxuries reserved for the richest among us. In case you haven’t realized, the ruling elite of this country have zero issue with homes or any other aspect of life being unaffordable to most people out there. In fact, they don’t merely have zero issue with it - it is precisely their goal. Billionaires want a nation of slaves to provide cheap labor to their companies. Unaffordable housing is a very effective mechanism for them to accomplish that end.

[@tomateeee33]

Those commercial real state will be transform in residental properties probabbly

[@mebigota946]

There's always this imaginary housing shortage at tops.

[@1painter4hire]

Yeah, well , we'll see..

[@amandahamm3273]

And how will people be paying for these in a few years?

[@NorthStarPNW]

He's absolutely giddy about upcoming "massive, massive" price & rent increases. That's DISGUSTING. Housing is human right, not a profit opportunity.

[@MiguelAngel-ir3ck]

I dont understand or comprehend how anyone will be able to afford higher priced homes or rents it doesnt add up considering wages, i make 150k-200k a year and it doesnt make sense making a payment that is almost 40-50 % of my monthly income

[@calvinhancock7844]

Sorry Ken but first time home buyers are already priced out of the market so what your saying doesn't make sense to me .

[@chrisyang05]

The downward pressure on house prices have been at work for a couple of years and yet the prices in most market stayed quite resilient. This is a clear indication that there are a lot of people standing at the sideline waiting to jump in. If the feds lower the interest rates a couple of times, I feel there'll be a another round of significant price increases.

[@SensSword]

That's why I hope they keep the interest rate where it's at or higher. We need to smash these prices down forcibly. It's ridiculous now and has been for years.

[@dsj9831]

Nah! If rates drop to 5% the prices will drop due to the huge increase in inventory. Sidelined buyers are tapped out now due to massive inflation outstripping their wages,student loan moratorium is over,layoffs gaining steam,tons of new builds hitting the market.

[@tylerian4648]

​@@dsj9831The remaining sideliners are falling asleep knowing it might be a while until prices they can work with arrive.

[@bdek68]

People can’t afford the houses now!! What do not understand.

[@bdek68]

@@dsj9831exactly! Prices are going lower. Everything reverts to the mean. Wake up people! 50% plus appreciation in 2-3 years. This guy is so wrong

[@thespiritualcapitalist626]

I disagree with you Ken, as someone who owns MF, people are doubling and tripling up. Also people can’t afford class A now and definitely not in the future. MF needs JOBS, 90000 good jobs loss last month.

[@ncharp]

We could see an end to the fed, and more free markets, except it negatively effects real estate owners and those in the managerial class. They like the red tape, it keeps their assets and pay rates high, especially if they work for the state.

[@danielhall941]

There are plenty of houses for sale in my area but they aren’t worth the price they want for them.

[@marcuspersley]

Great insights on the futures markets. This information is going to help a lot of investors.

[@marcuspersley]

@@jacobfoutch911please explain your views on this issue

[@nthastreettampaflorida1499]

I love the way ken explained this.

[@sandroaces]

You can say rent will keep going up but does not mean you will have tenants. As of now I see lots of empty units because of unaffordable rents that’s a true fact.

[@mikek.9980]

Exactly, there is a three unit flat in my area and owner asks for $1,800 for each unit. Guess what? Only the basement unit is rented and the other two are vacant for about 4 months now!! These owners have no shame and are overtaken by stupidity, plain and simple........

[@contactvim]

How these housing shortage topic never popped up prepandemic if it is a shortage for the past 15-20 yrs

[@mg-by7uu]

because it's the only bullish sign they have to cling to when there are 1000 bearish signs

[@UneducatedGeologist]

Its smoke and mirrors. Rhe low rates allowed more than 6million homes to be gobbled up and become slightly lived in. Vacant, 2nd homes and airbnbs. Had rates never gone below 4%. We'd have 6mo supply and houses would be 20% less in price.

[@mustafaacarogullari3018]

Only problem most people loosing purchasing power. So how this will happen?

[@mikek.9980]

It won't...

[@Bjax111]

I find the idea of a housing shortage a bit odd. When I don’t know a single (fully employed) person who has trouble finding a place to live. Seems to me the housing market can handle being a few million units short when that shortfall totals maybe 2% of the entire market. So long as construction stays at the current level we are fine. The shortage won’t come unless lenders freak out again and construction starts sliding again.

[@Atracy18]

I don’t see a housing shortage, i see an airbnb bubble starting to pop.

[@fyermun]

Im sitting on the sidelines cash in hand waiting to pounce.

[@Laissez_Faire]

That article was from a year ago

[@abundantcapitalgroup]

How would you approach SFH investing more forward? I'm looking to be the bank and offer seller financing. Is this a good strategy for someone who can't invest in commercial properties?

[@blazsoldo5716]

Do you mean like Japan?

[@tomateeee33]

I think market will adjust to demand, rich people just want to leave in rich neabors. Many people cant afford anymore living on this areas beacause rents are going higher and higher so they will be force to move cheapper areas and new suburbs will born. So the old expensive areas will remain expensive but with difficulty of a slow market to get out because you always need someone with more money to buy your house... So in the end those old houses will be bought at a cheapper new level and will be remade for new houses. The winners will be the new areas where have future not the old ones

[@user-qd7zv7zj7v]

I have heard recently from real estate people that even in flag, they are seeing significant increases in insurance costs/unit for apartment owners vs last year coupled with a drop in property values based on cap rates that are together really hitting the NOI for properties; especially in flat? Your thoughts??

[@desmo8755]

Resources are finite .. land and building material. This system of needing 15M new builds a decade to subsist is deeply flawed. And we’re seeing the inflection as the average buyer can’t afford the average new build, compounded by higher interest rates. This will all have an impact on your projections.

[@jasoncarter4343]

What will be shocking is all the forced selling of homes once the unemployment rate skyrockets during and after this coming recession. Residential housing should bottom around 2027.

[@clubadv]

There's initiatives in place now to convert office space to residential

[@mike2959]

Every year. We speculate. Read the articles from the 50’s 60’s 70’s etc…. Same story. Different time. But yet we say it’s different now. Every generation “it’s different this time” Here’s the truth. Every 10 years. Real estate doubles in value. If your salary doubles you’re still in the same place right? That’s the thing. “I can’t get ahead” why SHOULD anyone think someone owes them to “get ahead”? Nobody owes you anything.

[@user-nx6tr9je6v]

prices are down 15% from their peak and keep falling. With rates expected to stay higher for longer this will continue

[@alexmack956]

Prices are at all time high for January and February..

[@outoftheblue4131]

I believe it may be more accurate to take the increasing excess deaths into the equation before figuring the projected bottom line. Nobody wants to talk about it but that doesn't mean it is not happening.

[@lawrencesmith9059]

What is happening with population migration is that people are moving from places with limited land availability and expensive building environment to lower cost land and cheaper building environments. But this out-migration to areas with lots of land means that home building in those regions is not limited and can quickly increase as demand increases. This is NOT a formula for increased home prices. Additionally, the increased flexibility from work at home allows people to move to less impacted areas. What this effectively does is to INCREASE the supply of available land. Home prices in Florida are falling, Texas homes are abundant and prices are softening as well. His whole theory simply does not hold up. The stock market averages are at all time highs and the economy is "strong" according to numbers. This is all propped up by government deficit spending which is unsustainable. All this needs to wash through the system and after it washes through, it will create an environment where housing prices WILL NOT rise for many years to come.

[@adfreeviewer9005]

The truth is people can't afford homes as it is. Who is going to buy? The truth is the recession is coming, a lot of people will lose their jobs and the foreclosures will sky rocket. We are in a downturn for next 5 years. IMHO, not a financial advice

[@castlerc]

As Wayne Gretzky once said, you need to skate towards where you think the puck is going, I believe that’s what Ken is saying in this video. Glad I bought a bunch of properties in Florida back in the early 2000s.

[@networth00]

You were upside down in 2009-12, now your insurance and taxes are eating up most profit.

[@castlerc]

@@networth00 not really, I paid so little back then (compared to now a days) that taxes and insurance is not really a problem.

[@Ainappa]

so by this logic the rents and home prices will jump again...but who would be able to afford such high price? People are being out priced on every corner.

[@tsuipingho8946]

You did not mention the part played by most local governments. Building permits are getting harder to get due to constant revisions or even tightening of ordinances. Those are also crucial interferences to the market. Besides, developers have been building bigger houses (>2,000 sq ft) that have added to the unaffordability of properties. (Unlike the 60s, most SFH are 1000-1200 sq ft built on standard 6000 sq ft lot in most cities of California.) When home prices skyrocketed, the ultimate beneficiaries are governments since property taxes get reassessed and jumped higher and higher!

[@williamlackey123]

Thank you for allowing us young bucks to learn from guys like yourself with much more experience than I do, for FRER!!! I’m 34 and only own 3 properties. Started with 6k (which at the time seemed like a ton of money) and have turned it into about 500k in equity and been cash flow positive with insane margins since day one. Thank you brotha!