Why Are Houses Unaffordable in America? The Housing Crisis Explained

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Like most of the developed world, the US is current going through a housing crisis, with many unable to afford the rising prices. In this video, we break down why the crisis is so bad, what actually caused it and whether there's any potential solutions.
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1 - www.ft.com/content/1f34164b-b...
2 - upforgrowth.org/apply-the-vis...
3 - www.demographia.com/dhi.pdf
4 - upforgrowth.org/apply-the-vis...
5 - upforgrowth.org/apply-the-vis...
6 - www.nber.org/system/files/wor...
7 - upforgrowth.org/apply-the-vis...
8 - newsilver.com/the-lender/mill...
9 - upforgrowth.org/apply-the-vis...
10 - www.energy.gov/eere/vehicles/...
11 - shrinkthatfootprint.com/calcu...
12 - pubs.aeaweb.org/doi/pdfplus/1...
13 - www.nytimes.com/2022/07/14/up...
14 - www.bloomberg.com/news/featur...
15 - www.pewtrusts.org/en/research...
16 - fred.stlouisfed.org/series/RH...
17 - fred.stlouisfed.org/series/UN...
18 - www.whitehouse.gov/briefing-r...
19 - www.nytimes.com/2022/07/14/up...
20 - www.schatz.senate.gov/news/pr...

[@hersdera]

The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

[@Derawhitney]

Real estate and stock investments may be good decisions, especially if you have a solid trading strategy that can see you through prosperous days.

[@nicolasbenson009]

You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.

[@SandraDave.]

Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

[@nicolasbenson009]

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Margaret Johnson Arndt for the last five years or so, and her returns have been pretty much amazing.

[@EdwinSolomon-zs3nz]

I located her, sent her an email, and scheduled a call; hopefully, she will reply because I want to start the new year off financially strong.

[@blcstriker9052]

This is what happens when you turn essential human needs into a speculative asset.

[@Viviko]

Are you shocked? We were brainwashed that the “American Dream” is to own a house… Which is a problem… both from a buyer’s perspective having so much capital tied up in 123 Main St, and from an affordability crisis from said brainwashing.

[@arthas640]

you mean like literally every good, asset, or service? Cuz things like futures trading on food and fuel have been happening since at least the 30s in the US, at least that I'm aware of and it was likely going on before that. Even before modern stock trading people took similar speculative trading and investing on food and other goods going back to the Age of Discovery and earlier. Essentially needed goods are a good investment since they're less volatile price wise when compared to other goods or services since during a financial downturn or crash they're still in demand, it's the same reason many people will take jobs in industries that are always in demand (like construction, medicine, or food). Commodities too can rely more on volatile markets like rare earth metals when it comes to electronics or may rely on other countries like all the manufacturing in China whereas housing relies heavily on locally produced materials and local labor and are located locally so you're not dependent on any other countries market and can even fine tune things to a local market (state, county, city, or even neighborhood).

[@IL_Bgentyl]

It’s also what happens with gluttony. Everyone doesn’t need their own house, cars, and such. We have a culture issue not a housing issue.

[@arthas640]

@@IL_Bgentyl few people do own their own home, it's usually a family or roommates. There are roughly 140 million homes in America ("home" can be an apartment unit within a building, a B&B, or an individual house but doesnt include hotels) and there are 330 million citizens. On top of that there's an estimated 15 million illegal immigrants, plus tens of millions at any given time who have temporary visas. That means there's at least 2.5 people per home in America, many experts say that the numbers of illegal immigrants is likely higher than the estimates (I've seen others who estimate closer to 30-40 million since some people spend years or even decades in the US illegally, i know some who have) and there are also tons of homes that are derelict, abandoned, or otherwise unfit for habitation meaning there's probably more like 3-4 people per livable home. Regardless that's still significantly more than 1 person per home. Many European countries, who usually have more apartments than single homes and have more social housing schemes actually have even lower numbers. Norway for example has less than 5.5 million people but around 2.6 million homes so that's less than 2 people per home for example. Even Japan, who have serious space constraints and a sky high population density due to geography and have a stronger communal mindset have around 54 million homes for 124 million people or 2.3 people per home.

[@millevenon5853]

@@arthas640 America needs to build 10 million homes a year to reduce prices

[@thatjeff7550]

Thanks for including the bit about the real estate speculators. I've recently noticed that over the past couple of years, housing in just my local neighborhood alone has shot up in price drastically (good for me, since I own my home) to the point that they're basically unaffordable to young families. My neighbor across the street has four sons; the two who managed to move out and find of place of their own with their spouses had to move about 20 miles away from our small suburbia in order to find something in their price range. Even more disturbing, I've noticed several of the houses that were for sale didn't go to new families--they were turned into rentals. And with a little digging on my part on Google, I found out that they were bought by various real estate firms that are based in New York--places roughly a thousand miles from here. More digging revealed there is a rental company called Midland that's scarfing up houses all around the Deep South. This some oil company that's sunk some of their profits into real estate. So essentially, the folks that have been scamming consumers with price gouging are funneling that money into rental properties to scam consumers even more.

[@Chrissy717]

Kinda baffling that not more homeowners like you see this issue and call it out for what it is. I always asked myself: "Why is the demand for housing exploding when most of the western democracies have a population growth of basically zero?" Well... giant companies gambling for more money seems to be the answer once again.

[@palmercolson7037]

Absentee corporate landlords. I would be interested in finding out how much of the housing has been gobbled up by them. Also, how many new houses are picked up by corporations as well.

[@spacemanx9595]

@@Chrissy717 They don't care as long as the boomer owner sells and makes money, they will run with the profits to a retirement community and the family is SOL out of any generational wealth

[@spacemanx9595]

@@palmercolson7037 like 70% or more in the last 5 years. The pandemic was a boon to them

[@jamesthompson3099]

The problem with that argument is that investors can only buy from owners that are moving out and must pay market prices or buy from distressed home owners. They then turn around and rent the properties making them affordable for folks who can't come up with the down payment at these price levels. They don't take property off the market, just change the use case of an already existing property. The problem is lack of construction. This should be heaven for builders but they are being blocked. This is happening in my city in the name of "preserving small town atmosphere." I can appreciate that but it is wrecking the market when it happens everywhere.

[@utbb57]

90% of residential zoning is for single family homes, so only 10% is left for apartments, duplexes, condos and the like. In my area 42% of homes sales go to investment companies, cutting off home buyers. if just those two issues were addressed, it would go a long way to opening up the housing market.

[@Salarat]

In France, this is called liberals with champagne, these are those who are in favor of solving the housing crisis, but do not want apartments, triplex and duplexes in their single house area and believe that this will create a "ghetto".

[@EverettBurger]

In our town, the issue is an unwillingness for Boomers to sell. They have their entire retirement tied up into their homes they bought two generations ago. Therefore, two things have happened: 1. Overinflated prices. 2. School populations have dropped.

[@shadowpat810]

@Apsoy Pike Land value tax will drive out family home owners not corporates. A company can speculate the price so much that value is inflated af and makes it unaffordable for a family, they leave and corporate takes it

[@Blah81150]

Yeah destroy all the single family homes and start building ghettos, right?

[@Blah81150]

@Apsoy Pike It's been shrinking since the 80s.

[@ethankillion786]

I live in the Bay Area. My coworker had 400k-ish to put down on a house. Multiple times out bid on 900-1mil homes with people bidding 100k or more over asking price or cash offers. Finally settled for a new housing development because he got tired of losing out every time. Even in a pandemic there are plenty of rich people out there.

[@garretthaney9134]

Existing owners don't want to see prices drop. If zoning laws changed to allow for more high density housing in more areas, it's viewed as a loss for everyone who bought high. Local politicians cater to that desire and the snake eats its tail.

[@arthas640]

doesnt help that to most people single family dwellings are the ideal, both to live in but also to invest in, and high density housing requires more investment which makes it both a hard proposition to investors and makes it harder to actually build since your average Joe cant really afford the $10mil to build a 100 unit apartment building the same way they can afford the $200k to build a small a house.

[@joshuabuchanan1141]

That's the problem

[@NoorAnomaly]

I live in a Chicago suburb. I recently sold my first home, and the realtor, who was local to the town I lived in, mentioned that the house is a "nice starter home". Then he shook his head at the thought of a "starter home" selling for $250,000. I know, compared to the coasts, this is super cheap. However, this is a very blue collar neighborhood and in an area where space is abundant. When looking for a new house, as a single working parent, I did NOT want a giant yard, but a spot for the kids, dogs and I to hang, but I also wanted 4 bedrooms. Something akin to terraced/row houses in Europe. Near impossible to find. Either you had a "townhome" with no yard and only 3 bedrooms or a giant home with giant yard and 4 bedrooms. We ended up in the latter, and kids have been tasked to mow the lawn.

[@theuglykwan]

I live in Scotland where houses are generally cheaper than rest of the UK. The terraced and semi-detatched homes are about $250k in my suburb. There are cheaper places though. You could buy a cheap apartment for about a years worth of minimum wage about a decade ago. Now it takes maybe 3-4 years.

[@danielwebb8402]

Few European houses have 4 bedrooms. Especially that blue collar workers have.

[@richardmenz3257]

4 bedrooms is a lot.

[@rjackso0831]

There are some nice options in Texas if you want a big place that's affordable. Chicagoland isn't bad when compared to other large markets outside of Texas.

[@johnsamuel1999]

Very few european homes have four bedrooms (especially single family homes)

[@wallycola5653]

Thank you for making this video. This has been a topic that has really impacted my life and the life of a lot of people I know. Rent is ridiculous

[@pebblepod30]

Housing is unaffordable because it is designed that way, because maximizing profit (capitalism) is the highest value in all things, rather than something like Market Socialism & Supply Side Progressivism (the economic left wing version of "Trickle down economics". Look up those terms on wikipedia if you don't know what they mean.

[@wallycola5653]

@Platypus Paws oh definitely. I think macroeconomic decision making played a role in setting up market conditions that may have allowed for housing prices to increase, but greedflation was what actually caused it. Landlords saw an opportunity to raise prices far beyond what they should and they jumped on it.

[@pebblepod30]

Rent & Mortgage is also the main Cost of Living Inflation. My solution is for anything where politicians or Voters vote for what i call "When we're dead laws" on Pro-Housing policy, meaning such laws come into effect in 30 years, when an Individual's perceived financial Conflict-of-Interest with Pro-Housing policies is gone. There could also be an option to vote for a 2nd round to make the date sooner.

[@mohammedsarker5756]

@@pebblepod30 supply side progressivism isn't just trickle down, it's about producing more goods than we all agree are useful: more housing so we can all have an affordable home, making it easier for one to become a lawyer or doctor without years of superfluous credentials that put you in debt and make our healthcare more expensive. Frankly it's very much compatible with "democratic socialism" or social democracy, whatever leftist labels u prefer

[@Bigdog5400]

A topic most American networks aren’t covering, keep the content coming and please keep this channel alive

[@wilberwhateley7569]

And why aren’t they covering this? Could it be that the reason might be all the advertising that big investment firms buy from major news outlets?

[@arthas640]

I hear the housing crisis discussed often on American news and on economics related programs. There are tons of companies advertising different real estate related investing programs too from direct investment, to renting, to using them for AirBnB. It appears a lot in any discussion about millennials and gen Z since they're unable to afford houses and have to rent, and it gets brought up a lot in politics as well. The West Coast especially talks about it a ton since housing prices in areas like Portland, Southern California, and Western Washington have been skyrocketing at unsustainable rates for the last 10-15 years, I live not far from Seattle in a medium sized city and houses have roughly tripled in the last decade, and that's made housing a central part of many political discussions. Not sure how you've missed that.

[@KRYMauL]

Cnbc has been doing this for a while they even got into Not Just Bikes and Strong Towns methods.

[@chickenfishhybrid44]

I've been hearing about it for years. Especially on KZbin.

[@arthas640]

@@chickenfishhybrid44 I always find it hilarious how so many people will bury their head in the sand, suddenly notice a decade old story, and then react with "why arent more people covering this!?!" when it has been covered to death, they've just been living in a cave for a few years. The housing crisis was much smaller at the time but it started way back in 2008 during the crash and there was already a major construction boom going on in residential construction building more homes because demand was already high and then after the crash many houses never got finished, new ones didnt get built, and existing houses sat vacant as the banks repossessed them but meanwhile the US population was only growing. This story isnt recent, it's arguably 15 years old or more and it's been appearing on the news and on programs like this ever since.

[@ericlol99]

To explain how bad it is in NYC. My parents bought their home in early 2000 for about 240k with a salary of 50k. After they refinance their home to lower their interest rate and had a person assess the value of the home. They report that the house as of 2018 was worth $980,000. And they keep telling me that I can do the same. Jesus the prices are out of control and I have no hope that my government will do anything until it hit the upper class or them.

[@pebblepod30]

Your parents are not very honest people, at least on that issue. I am lucky on housing too, but I don't pretend luck (esp of when you were born) isnt the major factor, unless you move to a dying town instead of where the jobs are. Capitalism is incredibly stupid ways to organize society, Market Socialism & Supply Side Progressivism is much better.

[@pebblepod30]

Remember to Vote Pro-Housing in your local Council and join a Housing/Renters Union, and ask your Renting friends to as well.

[@Bonanzaking]

It is doable. I was homeless a few years ago. Now I own a house. Once you understand the trend and understand government monetary policy, you realize it doesn’t really matter over a course of a 30 year mortgage. You’ll be able to refinance like they have. By the time you’d reach boomer age the new generation of kids will be complaining about our generation getting cheap housing just like we all currently bag on the boomers.

[@tomm1109]

Boomers gave me advice when I bought my house "Buy the biggest house you can possibly afford, because it will never be cheaper". While their is some truth to that we right-sized so that our house was just big enough that it could be a forever home. Back in the day people used to upgrade every 5 years. I'm glad we right-sized because my wife was unable to return to work after our children so we can make it work on one income and its better for the kids.

[@Argonhubert]

@@pebblepod30 please don’t make this political. The solutions to the current problem of housing can only be fixed in a bipartisan manner. (Such as reducing zoning laws)

[@GoranIsmov]

Presently, mortgage rates have reached their highest point since the year 2000, spanning a period of 23 years. Considering inflation trends, there's a possibility that this figure might continue to escalate. To provide context, the 30-year fixed rate was only at 5% around this same time last year. Faced with this scenario, the question arises: should I continue waiting in anticipation of a potential housing market downturn before making a purchase, or is it more prudent to shift my attention towards the equity market?

[@MarioRo1]

Presently, mortgage rates have reached their highest point since the year 2000, spanning a period of 23 years. Considering inflation trends, there's a possibility that this figure might continue to escalate. To provide context, the 30-year fixed rate was only at 5% around this same time last year. Faced with this scenario, the question arises: should I continue waiting in anticipation of a potential housing market downturn before making a purchase, or is it more prudent to shift my attention towards the equity market?

[@ScottRich9]

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[@OlgaRusov]

I fully recognize the significant advantages of collaborating with a pro, but thus far, I haven't identified the right one for myself. Could you provide more details about the fiscal guide who has been guiding you?

[@ScottRich9]

I've enlisted Stacey Lee Decker as my fiscal guide, and her expertise contributes significantly to the fiscal industry. Acknowledged as a reputable authority in the field, she holds a deep understanding of portfolio diversification. I encourage further exploration of her credentials. With her extensive experience, she proves to be an outstanding guide for those aiming to grasp the complexities of the fiscal market.

[@tjagnew8290]

As a conservative, I am amazed at how neutrally this was told, and I'm glad someone finally talked about exclusionary zoning and its harms.

[@rovelfox7832]

As someone on the "other side" I also appreciate the neutrality of TLDR and other non-American news sources. I honestly think that one of the biggest issues facing America is how sensationalist and partisan news sources have become. It divides us and points us at each others throats, prioritizing the political extremes that make up the minority of our country. We may not have the same beliefs for how which problems may be solved in what ways and that's okay; we're only human. Idealogical diversity is natural and essential for healthy conversations and debate, and a healthy democracy. I love this channel, and I've shared it to all my friends. I hope they find it refreshing too.

[@stapleman007]

I love the inflection of this statement: *Ease zoning regulation* or.........................................................................BuildDenserHousing.

[@armandoamaya8326]

Same reason i have a bachelors and still live w parents

[@jamesthompson3099]

There is an old and economically true adage that high prices are solved by high prices absent government intervention. When price levels are high, builders should be going nuts constructing more units to take advantage of it, driving prices back down. In areas, such as the one I live in where there is a lot of incentive to move in, the city locked builders out to maintain the rural atmosphere we have. Prices shot up as people bid for what little available housing there was. Poor planning and zoning are removing huge swaths of land from the housing market.

[@wwsciffsww3748]

The issue is that construction costs are high, so even if home prices are high developers aren't that incentivized to build

[@jamesthompson3099]

@@wwsciffsww3748 Builders only look at their margins. Regardless of construction price they will tack on their margin and see if it fits the current demographic. If it does, they build.

[@tanjoy0205]

Another TLDR vid in one day ? From the US channel ? What a blessed day .

[@spagnum2410]

The idea that the US has a "housing shortage" completely overlooks the fact that we have enough homes for everyone who needs one. We just don't use them to that end.

[@chickenfishhybrid44]

There just being enough empty houses doesn't mean shit. People only want to live in certain places

[@mjungwir]

Zoning laws spread outside of the USA unfortunately. Things are identical here in Canada and seem similar in Ireland and the Uk.

[@franekkkkk]

Look at the system in place in vienna. Thats What you want.

[@spacemanx9595]

@@zUJ7EjVD you clearly don't know shit about zoning laws.

[@Zen-rd9np]

Less zoning laws and more nimbys in the uk.

[@millevenon5853]

@@zUJ7EjVD America is exporting the worst kind of capitalism. German(Rhine) capitalism is the best

[@chickenfishhybrid44]

Take responsibility for what goes on in your country. Did it ever occur to you that part of the reason things might be similar in Canada is thr similar people and conditions? When you have lots of area generally speaking this type of thing is possible, alot of places it couldn't be done or there's already alot of stuff built up and has been for 100s of years.

[@dars1961]

There is no supply shortage, there are significantly more emtpy homes than people looking for them, they are just used as investments and not on the market for reasonable prices.

[@ThePlaidPuffin]

@@xunqianbaidu6917 While I do agree that there is a housing shortage, so saying otherwise is not exactly correct, I do agree that there are many homes that are "vacant" and used as investments. My definition in this case does not mean literally vacant, but that they are being used as short-term vacation rentals. They are owned by someone using them as an extra income source, predominantly serving to the tourism industry, so the owners do not actively live in these houses ("vacant" by the owner). I understand this happens when a person/agency rents a house or apartment unit, but that is for long-term rentals. Anyway, what these short-term vacation rentals do is 1) creates fewer long-term housing for actual residents of said city or town, hence a housing shortage, and 2) increases home prices since those who can afford a second home can likely spend more than someone looking for one home (again, not in all cases, but I am talking about first time home buyers and those living on the median wage and lower, specifically). This is just my opinion, open to discussion. :)

[@arthas640]

There are empty homes, quite a few, but the issue is many of them have been vacant for a long time (there are even still homes that have been vacant since the housing market crash of 08) or are in need of remodeling. Many of the vacant homes are also in areas that dont have high demand while areas like the Seattle metro area, the I-5 corridor, and southern callifornia have had people moving there faster than they built homes and people work there but travel long distance due to unaffordable housing locally so they're forced to look elsewhere. I know people who work in Seattle but have to travel 100+ miles to work because there arent any houses closer.

[@ThePlaidPuffin]

@@xunqianbaidu6917 I agree that it is due to them being scarce, as all housing is scarce nowadays. However, there are many that are indeed located in areas that working people would be living. I know my city can not be generalized for the entirety of the US, but I do believe it can be a proxy. There are so many short-term vacation rentals in areas where workers would live throughout the city in which I do. The reason against generalizing my city for everywhere is because we have such a large tourism industry that people will pretty much stay in almost any neighborhood here to be able to ski, mountain bike, fish, hike, etc.

[@ThePlaidPuffin]

@@xunqianbaidu6917 Agreed, however as an example for the many, many tourist-driven towns and cities that are becoming packed with people that are non-permanent, it is a good base model (hence proxy referencing larger places with a similar economical background, and not everywhere in general).

[@KamiInValhalla]

I have more faith in a recession than politicians fixing this

[@stapleman007]

What about a Great Reset!

[@EverettBurger]

A couple of months ago, the local paper had a very positive article about a group of environmental activists who were opposed to a planned housing development being built in town. Mind you, this same paper has regular articles discussing the high cost of housing. I couldn't quite understand why the paper can't seen the correlation between these two issues. The article about the "environmental activists" was accompanied by a photograph of upper middle class folks around retirement age. They were protesting a planned development close to their neighborhood. The cynic in me feels that their real motivation is to ensure their property values stay high as they approach retirement. Adding more homes within that part of town will drop housing prices. Therefore, they won't be able to cash out and move with the money they made from their over inflated housing sale.

[@sawyersprott]

I’m glad I managed to get a home when I did. I live over an hour from a city, and my house went up by $100K in the first year after I bought it.

[@franekkkkk]

Thats crazy. Good for you. Sad that you live an hour from a city and thats how much it costs. In europe this would be unacceptable. Build Affordable housing and get some public communication or your cities will die.

[@shanescott8241]

That's not a good sign. A depression usually follows

[@James-eq8cq]

@@shanescott8241 You mean a recession - we haven't had a depression in 70+ years. Also, most young people are lazy and make poor financial decisions early on while they focus on their happiness first. I'm 28 years old living in Vancouver and have a house. Housing prices in the US (except for the inflated cities) are actually very affordable.

[@BlackHappyDragon]

While it's only part of the problem, we need to get rid of houses being used as investments instead of places where people go to live. It's bizarre that such essential commodities are allowed to be used as a get rich quick schemes.

[@Ava-wu4qp]

My rent went up 60% from 2019 to the start of 2022 with no improvements. Had to move back in with my parents... :/

[@stapleman007]

How is that $12 Trillion printed money working out for you?

[@jamesjellis]

It's not a lack of housing in the US as multiple reports say there are enough vacant (forclosed) homes to house the entire homeless population plus. It's a lack of affordable housing and rich people owning multiple units for the purpose of AirBnB rentals.

[@stapleman007]

Solution! Have the government rent AirBnB to house homeless! Brilliant!

[@lethalbee]

Thank you for being one of the most informative news channels out there!

[@codyfinnegan9197]

This was probably the best video I have seen so far on this topic. It really tackled all the aspects of this crisis and touched on a lot of things I've been feeling

[@christopherantonio3612]

Worst timing for me. I've finally saved up enough but houses are so expensive, the interest rates are ridiculous, and the houses get overbid like wild 💀

[@Bonanzaking]

No interest rates are not ridiculous. Maybe google what they were 40 years ago.

[@WheresMyPolenta]

@@Bonanzaking Righttt lol. Monetary and fiscal policies were barely mentioned in this video.

[@Schmidhead516]

I’m surprised there wasn’t more on rental ownership shifting to shorter terms/ getting rid of leases in favor of Vrbo and Air BNB increasing the speculative investments of corporations.

[@jonathanmarshall2860]

I'm a little late to this, but you did a good job in showing some of the big issues that is going on. Another big issue for this housing crisis is that investors are also renting house at foolish rates as well. I went on Zillow to look at houses. I was shocked to see that a house for rent was going for $1700 dollar in my neighborhood before taking account for heat and water bills. I can tell you first hand; no one is going to rent that here. No in this neighborhood can afford that. That right there is a paycheck and a half for me and I make a nice living. No, I well above minimal wage.

[@outstretchedwings]

Where I live, it used to be that $800-$900 was the cheapest you could get a one-bedroom, one bath. And that was in the *poor* neighborhoods. Nowadays, you can only get that price for a single room in someone's house. And that's only if you pay first, last and security on top of that, plus a background check fee! It used to be the only places that did that were places that were run by an HOA or condo board!

[@bearcubdaycare]

Zoning is usually done at a local, not state, level. By the city for incorporated areas, and by the county for the rest.

[@stapleman007]

All by politicians who get checks from Blackrock.

[@robertb6889]

Note: high mortgage prices lock a lot of homeowners in to current properties, and hurt affordability for buyers. That makes rent more expensive as well because there are fewer buyers and many landlords expect more rent to account for higher financing costs and/or alternative investments. High interest rates lower home prices but raise finance costs, and so they can have a neutral or even negative effect on housing costs.

[@arthas640]

its all pretty complicated and its part of why it always bugs me when people just say "why doesn't the government just raise interest rates to make it harder for these big investors to keep buying up homes and drive up costs?" or why doesn't the government just lower interest rates to make it cheaper to buy/build homes?". They dont realize doing either can raise housing costs for different reasons and doesnt really bring up how interest rates can affect the wider economy either driving up inflation, creating a healthier market which incentivizes trading and raises demand, or depressing the economy creating less demand. People often boil down really complicated issues to "why dont they just do this 1 simple fix?" ignoring that complex issues rarely have a simple, silver bullet solution.

[@robertb6889]

@@arthas640 really - you have to be very careful and targeted to make sure that you 1. don't keep regular people from homeownership at the same time as the investors 2. don't kill rental availability and pricing 3. don't kill your own political career by hurting homeowners too bad on price, and 4. don't kill long-term property builds making for a future shortage. It's a tough balance, especially when homeowners and builders have the major incentive to maximize prices (IE the mostly older, boomer population at least in the USA) and the renters and non-homeowners want to minimize price.

[@lordgong4980]

American businesses don't want lower house prices and current home owners don't either. Man we're F

[@GenericUrbanism]

It’s not a crisis, it’s planned.

[@popem09]

Great topic, and looking forward to the other 2 videos!

[@jeffmorris5802]

Great story - loved the addition of potential solutions and optimism at the end.

[@wendypierce5621]

It will be interesting to see how it plays out. A good amount of homes are still owned by institutional investors. Also, the people who locked in a 3 percent mortgage are unlikely to be going anywhere. Single family zoning has been ended in California, but it will take a while for density to increase with in-fill development.

[@theuglykwan]

NIMBYs just move on to roadblock 2.0.

[@AriaLunaCampbell]

I'm glad that this video did the important thing of tackling the issues with US zoning laws and ordinances. However, it's worth saying that we do need to understand how to craft a holistic approach to zoning, one that considers the importance of mixed incomes, public transit, diversity, etc, in improving and one day ending this affordable housing crisis. If you want good examples, City Beautiful covers European zoning in a video of his, Life Where I'm From has a video on Japanese zoning specifically, and Jason from Not Just Bikes covers these issues quite broadly and comprehensively on his channel alongside the importance of walkability, cycling, and public transit. If you also want more on the importance of public transit, Alan Fisher, the Armchair Urbanist, covers a lot of that on his channel. We can build stronger and more resilient communities. Ones that are not destined for bankruptcy and decay while degrading the lives of their residents. However, that means we have to make a real, concerted effort to change things and a dedication to never go back. Cause we all see where these decades of the Suburban Experiment have gotten us, and it's nowhere good.

[@scottauger4295]

Don’t dare get rid of this channel

[@thecaribbean8615]

Consider adding the trend of investors turning single family homes into rentals.

[@stapleman007]

You will own nothing, and you will be happy!

[@stevescruby1343]

Not only this, but as residential properties keep shifting towards being priced as investment assets, the resulting upward price creep will continually raise the property taxes annually due for them. Making it even harder for an average Joe to own them, let alone buy them.

[@Hi-tz7nr]

if that was a significant factor in the housing crisis they would've included it. Honestly even if all renting disappeared it'll just make everything worse because theres still the issue of zoning laws, low supply of construction, and now the added demand of housing due to the fact that people are now required to purchase a home lest they become homeless. Rentals if anything help with housing prices as it lowers the demand for buying single family homes.

[@chickenfishhybrid44]

While thays sketchy I think it's over blown

[@Riggsnic_co]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@audeywolsh]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@maga_zineng7810]

Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

[@kevinmarten]

I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?

[@maga_zineng7810]

Credits goes to "Carol Vivian Constable” one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.

[@kevinmarten]

thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@andrewgarberXYZ]

Great video, eliminating zoning would be an easy way to make home ownership more affordable to more people while increasing economic growth, a win-win

[@Javadamutt]

We've seen attempts made here to tax landlords into oblivion to "free up housing stock" but it's had the negative effect of pushing rent up due to there now being less rental properties available. Even attempts to prevent or punish AirBnB style businesses has failed simply because the amount of property it freed up has been negligible in the scheme of things. Politicians simply need to change laws to allow make it easier to get permission for new builds or do something to incentivise builders. I know as well we have a sewage processing crisis so for any new builds to go ahead, significant investment in waste processing must occur at the expense of the builders thus slowing down construction through delays, adding cost and complicating the planning process with 'extras'

[@arthas640]

YES! I work construction and you'd be shocked how much the cost of building a home is due to taxes and needless red tape. I live in a city that's a pain in the ass to deal with, tons of needless regulations, red tape, and they love to make you wait days for something that, no joke, takes minutes elsewhere and that all combines to raise the cost of building a house by around 25% more and take anywhere from 50-100% longer to complete compared to the next town over even though they have the same tax rates and they're both similarly sized cities, and that's just at the _city_ level and doesnt touch on anything at the county or state level. We dont even need to cut corners or slash taxes much, just some more common sense regulations would make things run smoother and more efficiently. Combine that with things like not needlessly preventing people from building ADU's or turning a house into a duplex and we could increase the housing supply fairly easily, then just tax vacant homes a bit extra to discourage people from just building tons of homes and not occupying them.

[@Homer-OJ-Simpson]

HEY!! You guys are getting really good at understanding what are important topics in the US. And you guys cover each topic better than most out there! Maybe because your group comes at the topics with less bias. I really hope this channel lasts! Not many good low bias youtube channels focusing on the US news. I swear the only other channels I see on this topic tend to be either very left or very right. I just want the facts and let me decide!

[@FreyrDK]

True that. We’re living in the information age (crisis) and it’s hard for regular folk like me to find good information… but i know my way around pretty well at this point

[@Homer-OJ-Simpson]

@@FreyrDK yeah, i can spot source that are more than just moderately bias. I'm left (between a socialist and a moderate/centrist) but I really want my news with little bias or else I feel that I'm being fooled by the content. I'll read some moderate right wing sources because they are still moderate and they often do provide some good insight. I don't know where you are from but I like NPR news in the US. They do pick topics that more interest to the left (like me) but they cover those topics from all sides so I get to hear what the otherside is thinking and why they think like that. But too many sources just want to provide the view of only one side or they make up claims about the other side.

[@FreyrDK]

@@Homer-OJ-Simpson Nice i will check out NPR. I’m danish so i have a natural bias towards left leaning policies cause it works so well here. But like you’re saying, echo chambering oneself is not the best way of doing things. The world is vast and different👍

[@Homer-OJ-Simpson]

@@FreyrDK NPR will be 3/4 US or North America News but they have a lot of international news. They are like BBC but without the BBC World. It's tax funded like the BBC. So is PBS which is for television. NPR is National Public Ratio and PBS is Public Broadcasting Service. Both NPR and PBS actually have a lot of different programs. If you like investigative reporting in documentary style, you will love PBS Frontline. It reminds me the German DW with their 30min to 1hr programs but Frontline has few episodes but goes really deep into major issues and often global issues like Putin, wars, Saudi Arabia, etc. They are all available for free youtube and their website but might be region restricted. Two of my favorites are "China's Covid Secrets" which details with evidence how China hid Covid in the early weeks and "The Crown Prince of Saudia Araba". That prince MbS episode was amazing in large part because the reporter was often in direct contact MbS (text messages, calls, etc) when Khashoggi was killed. It's a 2hr doc examaning the crown prince's vision for the future of Saudi Arabia, handling of dissent and MbS ties to the killing of Khashoggi.

[@chickenfishhybrid44]

​@@Homer-OJ-Simpson NPR absolutely has a left bias.

[@ryanmandal]

Thumbnail: America facing a housing crisis? Me: Is that a question?

[@user-op8fg3ny3j]

This what happens when you treat important things as speculative assets

[@rich4469]

A few things to keep in mind: modulars might look like double wides because they use the same basic prints, but are built like normal houses, only in a factory. This means they meet most zoning requirements for a fraction of the cost. Next, rural development is a $0 down payment option, and with seller concessions can be $0 out of pocket. "Rural" is in reference to population density. For an idea of density, most of Traverse City, MI, qualifies for RD loans in spite of being dense enough to lack space for new homes. Point being, look up RD property limits before writing it off. Odds are good your suburban area has a spot it'll cover. Third, buy below your means. I've seen far too many people relying on overtime to qualify for homes. If you and your partner if applicable can't afford your home on an average local market job, you may not be able to find a suitable job in an emergency.

[@pierrecurie]

That last one is easier said than done. A significant factor influencing housing prices is location. Want cheaper housing? Enjoy your 2 hr commute.

[@rich4469]

@@pierrecurie I don't disagree. I've been designing a model to solve that issue, but I need more time to navigate through different zoning restrictions. I was a banker for 6 years, so I know the "how" in a general sense, but figuring out how to weave it into different states is tricky.

[@chickenfishhybrid44]

​@pierrecurie theres still a huge chunk of people who willingly get themself into bad situations.

[@RS-ny8my]

The solution? 1. More money spent to build public housing, especially high-density housing 2. Subsidies for housing cooperatives 3. Forced purchase or takeover of housing monopolies like big real estate businesses, either turning them into public housing or cooperative housing. 4. Rising tax penalties for each additional housing unit owned by private citizens - meaning that the second and third units you purchase are subject to high taxes. You can apply for relief if relatives and/or elderly stay in those homes.

[@cloakedoblivion22]

You should do a vid on American rail infrastructure!

[@KingUnKaged]

In Canada the ratio of salary to house price is often closer to 20x or 30x, so just know that things could (and likely will) get worse.

[@moritamikamikara3879]

Yeah, same in britain, about 25-35 times. Insane...

[@leogonazalez9988]

I surely hope things will get better.

[@napoleonibonaparte7198]

As the House of Lords said, “Build more damn houses, not subsidise them.”

[@theintrovertedaspie9095]

But that costs money and time. And thats something a lot of people just don't have a lot of. No to mention that you first have ti buy the place or area to build and thats probably really expensive.

[@yoshiyahoo1552]

Thanks for the vid

[@dogsarepure2475]

While TL:DR is not exactly wrong in their analysis there are two huge glaring omissions in their analysis. The first one is big conglomerates buying up houses all over America with the sole intention of owning enough houses in an area to effectively manipulate the average prices of the market. Zillow is one company but there are many more. The second is the introduction of automated and unfair rent-setting systems championed by such companies as Equity Residential and others. They intentionally raise rent prices far faster than median income increases in most areas and don't mind evicting people en masse as long as their profits increase every year. Before these practices were introduced most landlords were much more interested in keeping occupancy rates high. Rent prices indirectly affect housing prices in myriad ways that are too complex to get into in a single comment. I'd recommend Behind The Bastards podcast and their recent episodes on the housing crisis in the US.

[@chickenfishhybrid44]

I still think zoning almost everyone is a bigger problem than Corporations buying homes

[@corwin32]

Love TLDR's thumbnails. Is that Alex? Whoever is doing it, great job.

[@fosyay1780]

Please don't get rid of this channel!

[@awsomeman5646]

Yeah, where I live in Bozeman, MT, it’s terrible out here. We have such a huge influx of residents and tourists, yet we also have an influx of people in poverty, people with food insecurity, and suicide rates, which only further compounds the tantamount issues of rising home prices.

[@patricparkison1903]

I live in Spokane Washington....my rent went from $725 to $1300 overnight

[@stapleman007]

Keep voting for "The Big D"! Ummmgh, just love that Big D.

[@armandoamaya8326]

Yo i absolutely love this channel plz keep it alive im literally righting notes everytime i use this to become more informed brotha i love the complete integrity and neutrality of this news show if you will but thanks for keeping it alive if not more than at least this far!!!!Cheers Mates 🍻

[@parkmannate4154]

No housing shortage in Iowa. Just an entertainment and specialized high paying jobs shortage

[@matthewshields]

I think zoning is an issue here, single family zoning restricts cities growth. If we got rid of different residential zoning types in favor of the building limits like a residential building can only be x amount of stories above the average stories of adjacent buildings this would promote a natural increase in density as cities grew.

[@joshuabuchanan1141]

Housing prices NEED to drop and zoning laws NEED to be banned

[@wildtxboy6083]

As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. I do have a significant amount of capital that is required to start up but I have no idea what strategies and direction I need to approach to help me make decent return

[@karynplumm878]

If you are not conversant with the markets, I'd advise you to get some kind of advise or assistance from a financial/investing coach. It might sound basic or generic, but getting in touch with an investment broker was how I was able to outperform the market and raise a profit of $850,000 since last year December, For me its the most ideal way to jump into the market these days

[@24ever12]

@@karynplumm878 That’s sum cool profit. I dream of that

[@wildtxboy6083]

@@karynplumm878 please who is the broker that assist you with your investment and if you dont mind, how do i get in touch with them?

[@karynplumm878]

@@wildtxboy6083 My consultant is Laura Estelle Dealy. I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can look her up if you care supervision. I basically follow her trade pattern and haven’t regretted doing so

[@wildtxboy6083]

@@karynplumm878 As a newbie i am happy with what i have found about the mentioned financial assistance on the internet and have mailed her for assistance.

[@EliF-ge5bu]

8:36 is not as simple as that. Mortgage loans are structured differently in the US that it is in the UK. Whereas in the UK mortgage loans have terms of 2-5 years, they are generally much longer in the US, with anywhere from 15 to 35 years. So while an increase in interest rates will sure cause a recession in the UK, it is not the case in the US.

[@memark8]

Commenting for the algorithm. Thanks for keeping the channel alive!

[@JoEsMhOe]

In Canada there has been a severe housing crisis for years now, and worse so when compared to the numbers here in the video. For the longest time, the majority of expensive cities in North America in Canada vs the US when factoring local income levels as well.

[@mollydugan6144]

As the risk of reiterating all the other comments, thank you TLDR US! This video is a great explainer.

[@TheFinalChapters]

Any homeowner that wants home prices to go up across the board is a fool. The higher the value of the house, the higher the taxes on it.

[@Homer-OJ-Simpson]

Many Americans especially on the left said people should be moving into the more dense urban areas for environmental reasons. It lead to the expected increased housing prices yet those same people are complaining. UP until 2000-ish, people were living the dense urban areas so most cities except coastal California and NYC had relatively affordable pricing. People started to move back into the cities after around 2000 and Then there was the huge 2000-2007 property bubble all across the country suburban or urban. The bubble burst and prices dropped again but when the economy began picking up again around 2012/13, people continued to move into cities and not as much suburbs so urban housing started rising rapidly again. People leaving rural areas for suburban areas and suburban people moving into cities is going to increase housing prices. Add in all the zoning restrictions in much of the US and you get out of control housing prices.

[@relucentsandman6447]

Just had to move for work and yeah that was a huge shock in AZ

[@DavidGentry-WebDeveloper]

I think the US should fix the housing issue by making all rent prices based on income and no greater than 30% of net income. This would force predatory landlords to make their rents affordable in order to fill their properties with tenants. This would also disincentivize corporate landlords from purchasing up entire communities just to sit on them and try to jack up the rates in an area as this would be pointless if the worker's salaries in the area are not increasing at the same rate as their properties would remain empty.

[@NrdCool]

I bought my house in 2017 and now it costs more than I would be able to afford otherwise. I definitely haven't put the kinds of upgrades in that would warrant the increase. Hopefully something changes for folks.

[@iamEddieP]

Where I live houses that used to cost $230-300k to build now is mid 500 to upper $600k.

[@crispisauce]

Great video

[@chickenfishhybrid44]

Crazy thing is some places are even worse, like alot of Canada.

[@Max11B]

40% of your paycheck to live somewhere where you don’t want too 😂 80% to live somewhere desirable

[@monkeeseemonkeedoo3745]

It's reassuring to see at 8:06 that the number of new houses under construction is increasing.

[@dallysinghson5569]

Those will be rental properties

[@monkeeseemonkeedoo3745]

@@dallysinghson5569 Still increases supply. Also, you don't know they will all be rental properties.

[@IL_Bgentyl]

Don’t forget laws have gifted us concrete jungles instead of walkable/efficient communities.

[@jameslewis2635]

USA: We're having a housing crisis. There just are too few properties available for people to move into. UK: Welcome to our world.

[@stapleman007]

USA: That is why we left you guys 200 years ago.

[@wolfgangthiers3177]

Investment purchases, those where the owner does not intend to live in the property, is the number one factor. Even where the zoning laws allow for denser housing, what is built are rental units, not condos to buy. I’d be interested to see how the percentage of housing units available for rent vs. ownership has shifted over the years.

[@randallbermudez9021]

In the us there more vacant homes than homeless people.

[@toyotaprius79]

Shhhh🤫 that's the quiet part

[@F1shBones]

Americans: "how will I ever buy my own house when it costs 5x my annual income?" Portuguese people with a median multiple of 25-26x seeing this video: 👁👄👁

[@stapleman007]

Yogism: Houses are so expensive, no one buys them anymore. *Blackrock walks in the room*

[@BewareTheLilyOfTheValley]

I'm not sure I'll ever be able to afford a house, but I currently really like my apartment and hope to live here several years...namely as I currently can't afford to move, even if I had to. I'm scared I'll be priced out of my apartment. My rent shot up $70 in one year, and already, that gobbles up pretty much the entirety of one paycheck.

[@arthas640]

I'm in a similar situation. I've got affordable housing, mainly because i rent a single room in a house with 2 roommates and my landlord. I'm afraid to move though since rent prices have been insane, sometimes rising by as much as a hundred dollars a month one year to the next, and buying a house is an even worse prospect as even a run down shithole can sell for over $350k outside the city limits. No joke I had a rough plan to buy a house about 10 years ago but saw housing prices rising by around 25% on average each year since, so between the time it took me to go from part time to full time work at my job at the time the price of a house had risen by almost as much as my pay had, then by the time i got my first raise the house had more than doubled its original price, now that same house is around $400k and that's a crappy starter home. My dad bought his last home in the 70s for the modern equivalent of around $200k, and counting the land that came with it and the house it would be worth $800k-$1mil today and today that's a house on the edge of a medium sized city of around 40k people

[@daniell1483]

As an American homeowner, I feel I have just a pinch of special insight on this issue. Over the past few years, my home literally doubled in value. First time homeowner and I feel like I bought my home at the perfect time, got it on the cheap, and could sell it today for easily 2x what I paid. I didn't need a mortgage admittedly, which let me get past the very high interest rates I'm hearing about, but at least anecdotally, housing prices have at least doubled before factoring in interest rates.

[@arthas640]

My neighbor when i was a teenager experienced much the same. I was planning on working through high school almost full time, had a job lined up, and would have been able to put a down payment on a home by the time i graduated. My neighbor did something similar but since he's a few years older than me he got a job earlier and was able to put that down payment in earlier. Unfortunately I started working during the start of the Great Recession so it delayed me getting a steady job until around 2012 while my neighbor bought his house around 2010. I saw housing prices raising an average of around 25% each year right around 2012-2014 so in the last 10 years my neighbors house has quadrupled in value while wages have risen by about 50% in my field which little more than kept pace with inflation and cost of living. No joke if i was just a couple years older I'd have made around $300k just off the rise in real estate value alone, far more since I work construction so I'd be able to remodel/add to the building and take that $300k+ and do my own real estate investments buying distressed properties and selling them on (which I could even bring my boss in on and make tens of thousands of extra money each year without even having to do much additional work outside of my normal 9:00-5:00 effectively adding an extra 50% or more on top of my annual income for roughly the same number of hours). My neighbor meanwhile ended up doing something similar after hearing me talk about my plans for years and he's made roughly $600k over the course of a little over a decade, mostly without any work on his part beyond managing his general contractor for some renovations.

[@daniell1483]

@@arthas640 It is always great to hear about other success stories! It really is true what they say about time being the most valuable resource, and early planning absolutely pays dividends. With real estate, I can see now why it can lead to speculation (both the US and China have dealt with housing bubbles), the investment feels almost too easy. Buying a home was possibly the single most important financial decision I ever made, so I can only imagine how much better it could be if you are a contractor and are able to build and renovate on your own.

[@robertgronewold3326]

Another big issue we have in the US is that many of the WRONG kinds of houses. So many cities have laws in place that make it that you can only build either huge family houses or high rise apartments. It's becoming difficult for young people to find a small starter home, and for retired people to find similarly sized housing for their elder years.

[@a.mustafa9698]

Here's a crazy idea. We build a lot more houses. Too bad the government too dumb to incentivize mass home building

[@calebbearup4282]

It's definitely interesting to watch the housing market shenanigans play out here

[@xero989]

In my local area they tired to do rezoning but in the local elections it got shot down. Many of the people I know who voted against it did it for three reasons: they did not want there property value to drop, did not want more local traffic, and did not want to risk urbanization that they link to criminal activity.

[@ParagonFury]

I wonder if they know that poverty and homelessness are bigger contributors than density to criminal activity?

[@blastermanr6359]

What mandating sprawling single family zoned suburbs are unsustainable. Who could have guessed, besides anyone whose ever been to LA.

[@tnsocialist1257]

The US has been in a housing crisis.

[@petelee2477]

7:51 at one time owning a home was necessary to earn the right to vote. This means that the government would solely cater to homeowners.

[@stivenstivens]

This is the best movie so far in this channel .

[@naniyo0]

dude, in hong kong, the house price to wage ratio is 19x, which makes the 5x u mentioned at the beginning to look like heavens 😢

[@porkypine602]

Me and my friends currently have this plan to afford a home. Work our 80k salary for 6 years scrapping every penny, while living with our parents to get enough for a mortgage. We crunched the numbers it’s borderline impossible to save up enough if you decide to move out and rent unless you make 200k. We don’t even have student loans an decent house in a decent neighborhood is 700k

[@rjackso0831]

700K for a decent home, I can tell you don't live in North Carolina.

[@dagnabbitwabbit]

Dude I live in upstate New York, I can't afford anything over 250k and all of those houses are nearly 100 years old 😐

[@rjackso0831]

@@dagnabbitwabbit You live in one of the most expensive places to live in the country. Consider moving, especially if you are in IT plenty of jobs in that field.

[@thatsmean2929]

I live in Central Louisiana and its one of the few affordable states left if you can find a good paying job. Problem is those jobs dont exist unless you work from home.

[@porkypine602]

@@rjackso0831 upstate NY is closer to the national average. NYC metro area is where you see the insane prices but that’s where all the high paying jobs are and work from home is slowly getting removed. I want to move to a cheaper area but I also don’t wanna raise the prices for the people already living there.

[@bicelisGeopolitics]

Is there a way to connect household money to the housing price? instead of all the money in the system connected to the housing price.

[@russellwilliams9437]

hell in the UK it was 4-5 normally now its something like 9 !

[@daxtynminn3415]

Imagine how much larger the US economy would be today if we fixed the housing issue earlier.

[@EverettBurger]

Heck, imagine how much larger the US economy would be if we fixed the roads.

[@richardmenz3257]

@@EverettBurger it’s to expensive to fix all the roads because everything is spread out 2 far.

[@daxtynminn3415]

@@richardmenz3257 nonsense. If we built it all back then. we can maintain today.

[@richardmenz3257]

​@@daxtynminn3415 Just matters on tax collection, payment, and oversight of funds. But since most cities need 7 x more funds to cover all things they need to repair alot of thing are broken which makes it impossible to maintain how the system is. Why I said it is spread 2 far because that is the only realitic solution I can see while keeping the greed/miss managed money that prob wont be solved.

[@moritamikamikara3879]

Believe me, America is not the only country with this problem. Britain is having it way worse than the US, and China is having it way worse than the UK. If Britain has a housing market crash and the price goes down, a decent amount of the cost of living crisis we're going through right now will just *poof* vanish. I spend 80% of my expenditure on rent.

[@ForestFWhite]

It's not complicated. Corporations, not people, own most of the houses on my block, and lines the pockets of politicians via PACs. The only way out is a crash destroying speculators and most people along the way. Thank speculators for engineering the crisis that hurts us all.

[@jordanbarefoot]

Last I heard, the US is 5 million homes short or what it needs.

[@wepopew]

Commenting for the algorithm. This is by far the biggest issue for every developed country.

[@mech-E]

It's still not great that big business is investing in single family homes on speculation. Bumps up rental costs and lowers the inventory of single family homes and drives their prices up. It's all a massive cluster.