The commercial real estate crash is getting severe. Here's the % decline in values from peak for all real estate asset classes: Existing Single-Family: -4.8% Industrial: -16.0% Retail: -17.0% New Single-Family: -19.4% Apartments: -28.0% Offices: -37.0% In case you were under the impression that "there is no downturn in real estate". Full exploration of this data occurs at 13:19 of the video.
It’s amazing how retail stores were all covered in FOR RENT signs, during Obama’s era. Then during Trump’s era, they all got filled up… until the governors shut down all the small businesses over Covid. Now under Obama’s THIRD term, everyone is going broke, except the rich. That’s what you get for stopping the oil production. Fuel goes up, EVERYTHING delivered by trucks skyrockets… but the weak minded aren’t smart enough to see the connection.
Bank Data indicates residential in much worse shape. Appearance must be maintained until after election, then Taxpayers $5 Trillion Bailout can be discussed. FED Reserve is very Political.
The job market is not stronger .. in fact it's getting harder and harder to get a "Good" job with good salary .. lots of layoffs in the Professional like Technology industry and any other industries as well. Look at Google, Facebook (Meta), Amazon, Netflix, Disney .. they're all laying off employees left and right.
So is the Metro Atlanta area. Too much over building of new homes along with apartments. I feel like we're all FRUCKED until this real estate bubble pops 😢😢
I'm in Michigan, and the housing market here over the past 7-8 years has been unprecedented. Houses that were purchased for $130K in 2015 are now going for $590K. These are tiny, poorly constructed 950-square-foot homes in quiet, mediocre neighborhoods. Meanwhile, nicer, average-sized homes in better neighborhoods that were over $300K a decade ago are now selling for $750K+. It's wild.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advice but get buying, cash isn’t king at all in this time!
I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
bravo! I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
The decision on when to pick an Adviser is a very personal one. I take guidance from ‘’Jessica Lee Horst’’ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
I thoroughly went through her resume, educational background, and qualifications, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
It’s getting wild by the day. The prices of homes are quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.
I get such worries too. I'm 50 and retiring early. Already worried of the future and where its headed, especially in terms of financies and how to get by. I'm also considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
The best market strategy is to work with a credible investing coach. Since a while ago, I've been in touch with a coach, mostly because I lack the depth of understanding and mental toughness to deal with the ongoing market conditions. You lack the information necessary to succeed in a competitive market, not because you're doing anything wrong, but rather because of your lack of experience.
‘Gertrude Margaret Quinto’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
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.
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.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
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.
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.
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.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five aiyears now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I appreciate you sharing this. When I looked up the woman you named and read through her credentials, it was obvious that she was a complete professional. I just need her to respond to the message I wrote her.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
"Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Insightful... I was curious about her, so I looked her up online. I discovered her website, and I must say that she seems knowledgeable. I sent her an email outlining my goals. I appreciate you sharing.
I read about someone who was renting a one-bedroom apartment for $1300/month. He found a house with a $900/month mortgage. However, when he applied for the house, he was denied. I just couldn't believe it. If he could pay $1300/month for a one-bedroom apartment, why couldn't he afford a $900/month mortgage on a house?!
Agreed. The logic isn’t there. However, the system doesn’t run on logic. It runs on a very specific set of rules that powerful rich people set up to benefit themselves at the expense of us normies.
I can't imagine a mortgage for that little, perhaps the property he was looking at was non-conforming and therefore couldn't be worked into a standard mortgage.
I live in Jacksonville Florida I own a condominium I have seen them sitting most landlords are losing money because tenants are moving out and a lot of vacancies one across the street was asking 1600.00 a month for three bedrooms now they're asking $1,300 a month greed greed greed now they've been sitting there for the last 5 months they had good tenants but they got greedy and now they just sitting there losing money an association fees are going up there goes the equity some of those tenants lived there for 7 years I own my condominium but I also live in it but I see the mistake landlords made greed
A HS buddy was renting for $1,400/month. His renewal just came up and he threatened to move to a new complex that just opened. They lowered his rent to $1,200/month and give him two months free on a one year extension.
Most people will not even ask for a reduction or threaten to leave if a landlord tried to raise the rent. Most people just whine about it but pay anyway.
Thanks for the comment. Imperative that renters push back on landlords when getting lease renewals. Often, they will be surprise at what the landlord will do.
Yep. Job market is terrible right now. I've been out of work over six months but I'm not officially listed as unemployed because I got a severance payout when I was laid off. Books are cooked.
Where you at? Job market is booming here in San Diego. My girlfriend had trouble getting an interview 2 years ago, but now she's on her second interview with 8 employers at the same time.
@@RichardRemer I'm glad your girlfriend is finding success. However, job market is not booming in San Diego. Unemployment rate has increased from a low of 3.0% in Dec 2022 up to 4.7% today. Which is the highest rate since 2016 excluding pandemic. fred.stlouisfed.org/series/CASAND5URN
Tell the politicians to stop raising property taxes and the insurance companies to stop raising rates and the contractors to stop charging so much for repairs and maybe landlords could afford to lower rents. Behind every price is an input cost. Start there.
@@pearljam_1 If your property becomes more valuable, the taxes and insurance you pay on it will go up. If your rentals lose value, you’ll pay less in taxes and insurance. Pretty simple.
@@DaveDDD Bro my post went right over your head. My point is that everyone wants to complain about landlords when they don’t understand why rents go up. If you want to complain- complain about the right things.
I sold my Miami hi-rise condo and moved 3 hours up the east coast of FL to Melbourne. I'm renting now for half the cost of BEING OWNED by my condo. While searching the east coast up and down, I drove through Daytona and headed toward the beach on the main thoroughfare from I-95 and there were TONS of new apartment complexes under construction, I mean ONE AFTER ANOTHER. I'll be curious to see what comes of that market once these are ready for occupation. I may be able to use that when my lease comes up for renewal in a year. I'm gonna go where my money is treated the best. It's time for tenants to get their revenge when the leverage flips the other way.
Same here in Tampa/Wesley Chapel area, tons of new construction. My home is down 100k from 2022 and I live in one of the best neighborhoods. Prices are coming down more for sure once all this new inventory is done building
I don’t live in FL but just for fun I like looking at million dollar condos and it always blows my mind when I look at the HOA cost in those. Even if you owned a 2 million dollar one outright and rented it out you would make like 12k a yr after all the bloodletting. Nuts!
@@chazdean201 That's correct. These places make no economic sense whatsoever. I thought big money was usually smart money, but anyone buying these is being dumb with their money.
It’s so crazy that they’re willing to lose it all rather than lose a little. No one seems to be willing to do the one thing that could save the. Lower prices.
Owners can't lower prices. The revenue is needed to cover existing debt service. As property defaults the rents will be lower over time as that debt is cleared away. These lower rents will force overleveraged operators out. It takes time for all this to happen because people don't want to give up and take the loss.
@@JonSmith531 They will offer discount prices for new tenants and then raise rents on existing long term tenants. They don't take into account the cost of finding a replacement tenants. They raise rent and hope that a small percentage of their tenants will move.
@@JonSmith531 During the last crash, owners who went into the negative on their property value, lowered the rent but stopped making payments on the property. If your landlord lowers the rent, anticipate a foreclosure notification
@@JonSmith531 I don’t know how true that is. I’d rather be a little in the red but be full occupancy that be low occupancy at high rent bc you know you’re gonna have tenants default. Less likely to happen if they low rents are higher everywhere else. Just lower your expenses on the back side.
The rents at my apartment for a 2/2 at the height of this bubble on 2022 was $2600.00 in Central FL. It is now $1773.00 currently. They way over built in Central FL thinking that this mass migration would last forever and they can not fill these new apartment buildings!
My studio rent in Charlotte went up from $1,350 in 2021 to $1,700 in 2022 (that’s almost 30% increase). Watching this video made me feel better. Can’t wait to see how this all unfolds!
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
My CFA ’Sonya lee Mitchell’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
True I toured a studio luxury apartment yesterday and price dropped 10-15% from last year, and the manager even said there are a lot of units available now.
I dont have the same experience, but I would guess this crash is going to cause a mass immigration from the expensive cities to which more affordable suburbs.
@TBrown-zy2dr: BiNGO!! Personally I was laid off last summer from one of top 3 US Banks….six figure top production worker in Finance. After 7 months of job searching, hundreds of applications and at least 12 interviews finally secured a job at a top 3 bank making 75% of what I was making before. I have numerous professional colleagues also laid off last year who were earning six figures and have taken jobs earning half and in some cases a third of what they were making before and some are still searching for employment……crazy times in the job market!!! An understatement!!
I see the differant side. Each person I meet (about 2-3 a week) who just moved to my area (Dallas) from California due to their company moving got a pay raise. Once this new money gets into the economy the inflation is going to get even worse.
Finally, I’m here in Jacksonville, Florida and we have been struggling the last few years with the prices in the area. We need more affordable housing prices.
Also here in Jax area. The 2/2 I'm in now was $1200/mo back in 2019 when I moved in, and having to move because they want $1600+ now. On the westside with high crime and homelessness rates!
@@tabithajax when your lease comes up, you should look into southside area. by that time It will be about the same price you’re paying in Westside or cheaper. Best of luck.
I look at single family homes on Zillow and other sites almost daily, paying attention to price drops and price history in the South Florida / Miami area. The excessive/ greedy prices are falling drastically. Very little is selling. If this continues we should see prices get close to the pre pandemic prices, adjusted for normal 4-5% growth.
Greedy? Come on dog if you were selling your house would you just drop the price to be nice? I get it that it sucks for buyers but calling them greedy for asking market prices…
Yes, greedy. No other way to see what happened with single family homes in Miami. There are homes that went up 300%, and have beed on the market for a full year or even more in some cases. I’ve made offers that were decent considering the situation, offers only 10% below and those offers were refused. Mind you, those homes were all fixer-uppers that haven’t seen any updates in decades and have never been nice homes even when new, in questionable neighborhoods. Pure speculation and greed. I’ve stopped attempting to make a purchase and just waiting it out.
@@annab5090 I’ll give you that. There are some a*holes just trying to flip without adding any or minimal value. But generally speaking market forces determine pricing and it’s not fair to say everyone is collectively being greedy. The holdouts who can’t accept their houses aren’t worth what they were a year ago are in for a rude awakening.
Please do a video on Raleigh NC. As an agent, I must say that sellers and LL are very still delusional. A 1900 sqft starter home that bought for 215k 5 yrs ago that was just listed for $430k. Wild
lol downtown Raleigh was all hood...and then they bought it up to make those small 215k homes which was gentrified and now raleigh is just as expensive as dallas tx. lol..
Based on what? Banks failing? Massive numbers of out of work people who can't pay their mortgages? Massive numbers of people fleeing the area because there's no work? Massive numbers of old people moving into homes for aged, without anybody available to buy their expensive, old, downtown houses? There were 9.5 months of housing inventory pre 08. There's currently 3.2 months of inventory where I live. Seems to me this is simply sniveling because you can't afford to buy a house. Banks are far more careful about who they lend to now. In 2006 you get a mortgage with no income, or a mortgage where you build no equity and were renting the house from the bank.
Do you suggest banks are "in on it" too? Isn't it more logical that it costs more to borrow money, so landlords pass that expense to the tenant? It's not collusion whatsoever.. just plan logic
They collect information on the surrounding areas and said they can create more revenue by suggesting everyone in the area on their platform raise rent. Of course raising rent is going to increase profit, it's the dumbest shit ever.
@@redtiger7268landlords use it to hold units off the market to decrease supply. If you coordinate this way, it’s against the law and called collusion. RealPage is how they coordinate.
@@sleeplesspops3949it's not a suggestion when you join the platform. Real page tells you what to set your rent at and has enforcers to make sure you don't undercut them. It's a cartel.
Rents are down in Huntington Beach, CA. A 2bd/1bth that rented for $2600 last summer, now rents for $2300 to $2500 depending on the condition. In Nashville, over in the West End, a 2bd/1bth that rented for $2100 a year ago, now rents for $1600 to $1700.
You're right. Here in Richmond, Va metro area (Chester) rent is up. I just received a renewal rate for 12 months, which has gone up 8%, but my salary is still the same. Life is getting tough !American is sinking 😔
I have some family that lives outside of Richmond and they sent me a house for sale... it sold for $88,000 in 1988 and is now on the market for just under 700K and its going to sell. Funny because if you "adjust for inflation" they claim that 88K from 1988 is like $240,000 in todays money. Yeah right!
Thanks for the comment. Richmond is a market that has tighter vacancy rates and thus - rents have hit a floor. Still wise to shop around and see what else is out there though.
Rent is going up here in Vegas for single family homes. I was at 1350 in 2021, then 1900, and now 2200 for the home I rent. They are selling and to find a similar size home in this same area I will have to now pay 2600-2800.
Look at the empty retail space in Los Angeles, Beverly Hills and Hollywood. Retail space and Office space is in sooooo much trouble that it looks like Detroit. These store fronts will never be rented again.
A few months ago San Francisco had its biggest foreclosure auction of multifamily properties: 76 buildings formerly owned by Veritas. Like CitiApartments before them, Veritas overextended itself. Now Brookfield is SF's biggest landlord; they bailed on Westfield Mall last year, but they're still betting on the City's recovery. P.T. Barnum was right!
Thanks for the facts without the doom and gloom. Here outside Dallas, new apartments are everywhere. Easy to gets lost on familiar roads. A glut of units won't affect the investors, the management companies are cut throat. Renter must repaint if leaving. Kiss your deposit good bye.
In a Denver suburb, my rent will go up about about 7% soon. I saw someone steal a buggy full of food recently, the grocery store staff said it happens all the time. Which means increased prices to the paying customers. I’m guessing people are stealing food because they can’t afford to live. I’m in a good part of town too!
Will you just accept the rent increase or shop around? It’s been said that rental renewals show a price hike while new rents show a decline. Perhaps search around and present those rents as a reason to not have yours hiked. Perhaps you can get away with not having an increase as I’m sure they’d prefer to keep a tenant rather than find a new one at a lower rate.
Thanks for the comment. Sorry to hear your rent is going up. As the poster above says - landlords will try often try to increase renewal rents while giving new tenants discounts. Important to explore market and push back a bit to see what they're willing to do.
Tampa rents are down here, my rent renewal however tried to tell me they had to raise my rent but when you want to move in as a new resident at the same unit it’s $200 a month less, so turned it down and moving to a nicer place for the same price I had before.
The advertised unemployment rate does not include those who have given up or decided not to work at the low pay, low skill jobs available. They are counted as no longer in the market. Many millions are classified as no longer looking for work when in fact many used up all their unemployment benefits since they are overqualified for jobs they could find. In other words the government has changed how it calculates the unemployment rate just the same way they changed how they calculate the CPI: in their favor. Full-time jobs actually went down in the last report while they counted the 300K+ part-time jobs taken by people who are already working full or part-time jobs and advertised those as a great employment rate. "Still a man hears what he wants to hear and disregards the rest," Paul Simon. God Bless Us All
Such a relief to read actual other human people's comments bluntly stating what I have been shouting into the gale since August 2019! Everything since then has been artificial rate, bank, supply, and employment manipulation- from shutting down most cities to remote work suddenly widely used to near forced small biz shutdowns to internal migrations to external mass immigration to extreme MIC spending to flooding the world with USD bonds and holding interest rates to insanely low numbers until.very recently. The CRE should have been happening Sept 2019 onwards, the metro core unviability and declining population rates should have followed soon after, with many of the finance etc jobs going the same way as HR etc consulting, then the vaporware tech bros being nuked- and all this causing first optional or leisure spending plunging, then high end house market collapses cascading down to core values in mid range... Thus crushing many part time or hospitality and service jobs too. And all that creating a similar reverse migration as what happened in 2007-12, but including huge swaths of H1b tech as well as low end workers. Instead they went so far past kiting checks and stalling outcomes while trying to boost core industries into jobs creation they are well into pure fraud and pyramid scheme territory at the highest govt levels now.
It’s the opposite in most of California, many cities have new home construction moratoriums NIMBY, this keeps real estate artificially high due to low Inventory and this is also another way of keeping outsiders out because most are priced out of the good neighborhoods. Even crime ridden cities in California homes are going for over $500,000.00 which is crazy, that’s why we have a lot of gentrification
Vacant CRE has been piling up since late 2008! What did people expect?! Some in my area had to be demolished bc they sat unsold for yrs! The fell apart
And....there has still been no "price discovery!" Commercial real estate is is much worse of a state than these statistics indicate. Hang on boys! It's going to be a wild ride. Signed, patiently waiting.
Very simple explanation. It's called: remote work, or, work from home. So offices aren't needed anymore, prices drop, while homes are needed more, so prices rise. The comparison to 2008 is entirely invalid. It's a completely different situation today. And home prices haven't crashed and probably won't.
@@kalitzina I looked around and every place that was livable was even more money. I even talked to the property manager and she said we aren't reducing rents right now and we are charging for what the market is currently.
@alwaysmiguel, it's greed! I live in the west valley, rent was 1200 for our 4 bed 2 bad house. It increased 100 every year.....now we're getting booted because they want to list for 2500.
@@kristendurkin7011 Pretty sure percentage-wise it's still more than double what it was pre-pandemic. Hybrid is also a lot more common so it's not just fully remote workers, you can have a smaller office than before with people only coming in 2-3 days and shared workspaces. I have a 100% remote job--at a company that was remote before the pandemic and didn't exist in 2008. Between 2008 and today, a lot of 100% remote companies popped up--many people with good jobs and no office at all.
2022, I listened to you, and waited, guess what I paid over $80 k rent since then, and prices and rates skyrocketed where we live. I wonder if work for those big investors!
No you were smart. At least partway. I know it doesn't feel like it, and perhaps a big chunk of that 80k was due to not hunting for and getting a longterm lower priced lease outside your preferred zone... But as someone watching the markets and economy longterm and with no skin in the game beyond a paid off home with stable property taxes: You did good not to buy 18-24 months ago unless it was all.of the following: Your employment and income forecast was extremely secure. BIG down payment. Solid house already or easy fixes. 3% fixed 15 or 30 year mortgage. Quality safe neighborhood and schools. AND THIS TOO You intended to live there very longterm, like 15 to 50 years. Anything missing from that and you would be very likely currently be trapped in a bad situation vs spent a big chunk of income but able to change your location or scenario with no other blowback.
Great video! I live in Arizona, west of the Phoenix metro. In the metro, there are still a lot of stressed mortgages left over from the previous recession. At one time, they were referred to as "looming foreclosures." What about the people who got behind and resumed payments, but never got caught up? How many of the "criticized loans" have a history going back to The Great Financial Crisis? BTW, Buckeye, AZ is a mismanaged city with a paradigm of taxing Peter to pay Paul. Buckeye is in a tailspin of needing a continually expanding tax base. The net effect is incredible over building.
Unemployment only counts people who have not worked for less than 2 years. It does not count people who have been unemployed for over 2 years. The real unemployment rate, and the under employment rate, is much much higher. Historically it is at an unprecedentedly high and absolutely unsustainable rate. If it were not for government handouts which are now based mostly on government debt, we would see the true effect of the real unemployment rate. But don't worry, government debt is not an endless fountain of free money, it's not free at all and the next five or six, or more, generations will have to pay it off while they live in absolute poverty, you can thank the politicians, the Fed, and all those who now are irresponsible with money. Also, because of rent control in places like NYC, it is becoming harder and harder to not only make money, but even stay afloat for some landlords. I will bet you most of those new foreclosures are in places like NYC, which cap rent, but not the taxes they charge on the building, the cost of fuel, the cost of repairs, the cost of employees, ect.
What's happening is, as usual, tenants are getting hit hard. Landlords can afford neither basic upkeep NOR major upkeep which includes infrastructure. In other words, they are falling apart. Right now they are getting away with it because there is NO local oversight over these poorly designed mega units. Here in the South they are strategically built into retail and suburban areas. Soon, their deterioration will affect those prices ... It's one big mess, especially for seniors. They don't know what to do and have nowhere to go. Really sad and pathetic.
What you are not considering is that unemployment numbers are hyper inflated. Credit card debt is maxed out and fluid cash just isn't there anymore. So people are going to go without, which means the economy slows down. What will fool everyone is the outrageous amount of Government spending (money we don't have).
Gosh Dang It, I've been waiting two years for you talk about my home housing market of Grand Rapids, Mi waiting for good news but, instead the first time you shout it out that it has the fastest growing rental rates. Right as I'm looking for an apartment. Thank you for all the work and information you share.
Considering reallocating from real estate to stocks. Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
The whole talk about "reverse" market crash (real estate and stock market) basically argues that we are nowhere near done with inflation and that we might actually experience "hyperinflation" in the near by future.
Hi Juliet, i understand your situation. My investment coach sensed this and advised me on diversity and today I can attest to the success of this approach after seeing my portfolio grow from $300k to almost $670k just in few months...
The licensed fiduciary advisor I work with is Mary Elizabeth Hanson, Just research the name on your browser. You’d find necessary details to work with her or set up an appointment.
I'm out here in Houston and have definitely noticed rents becoming much more competitive with a lot of incentives as well as these new complexes are trying to pull folks from older complexes as well. It's a fascinating time for renters in my opinion.
@@jt-wh9gy If your whole pipeline is wiped out because of one study then that is bad business not the study itself. Anyone who has been in this business like I have for 28 years would recognize that was poor risk management. It is about your portfolio of molecules.
Winter Garden Florida is still a strong market. Prices increased at least $200k in the last 2 years and sellers are lowering $10k or so. Barely a crash in that region. I really don’t know what Nick is talking about.
Greed has it's price! 75% less,would be real justice for workers, asking 3 times the amount of rent as income is ridiculous and abusive yet property owners are not understanding renters are fed up I know I am, having a regular job but still can't afford a decent place to stay sucks
Existing single family have not declined because of how severe the housing shortage has been. Adding 20 million illegals, growth/birth rate, millennials and gen z ready to buy as they age, has proven to be a higher demand and need for more housing than what past data may show on what is usually considered low or high inventory levels. Here in Vegas, every single plot of land is building apartment high rises and single family housing tracks. The housing supply will have to multiply several times before any significant demand drop occurs. Which is why I won’t be able to buy till 2027/2028ish. And at that point, inflation may have increased the price of a housing correction to where the prices are at where they are now. Meaning, most of us will never be able to own unless you are worth seven figures. Best way to be able to own a home is become a millionaire. And you do that by building and owning several businesses, working 3 jobs to support those businesses until they take off, side hustles and selling stuff you dont need because you are now working 18 hours a day, 7 days a week. If you do that you MAY have a chance of making it.
There’s a market I’ve been tracking for awhile. Plenty of homes for sale, plenty to pick from, stuck on 2021 pricing, and since it’s no longer 2021, they’re sitting there for months with little ridiculous reductions of $500-$1000 or taking them off market and relisting, etc. And not sure how an illegal is buying a $600K house, but whatever.
@@katydid2877 they dont unless three families move in and split costs which happens all the time. Most take up the available rental units and it is why rent has also exploded here due to lack of inventory. Everyone acts like there are no illegals and that they all must live under bridges with homeless. They get IDs, cars, jobs, and shelter regardless of if you think they should be able to or not. Not to mention the Californian migration as well. It will crash eventually, but that will be when inflation is so high it won’t matter anyway.
That apartment complex in Montana won't ever cashflow. The area has a population of 50K with enough housing already. Adding 48 units to the market will tank the rental market. Local government should just do a tax foreclosure and turn them into section 8.
Right, not a lot of people moving there these days with layoffs and current remote workers if moved to MT couple of years ago already had enough of MT. There are basically no decent job opportunities in Kalispell.
Check a lot of the renters protection language. Rent went up above a typical 10% rent protection. The reason is a lot of the language read something like rent can only go up 10% PLUS CPI! So it went up like 18% and 19% and so on.
@@cheekytitaable Whats the "big pic"? The fact that you're taking real estate insights from a loozer who's renting a one bedroom apartment in Nashville? 🤣
WOW!! The Fallyn in Midtown is advertising big time. I will be downtown this weekend at the Titans draft party on will try to go tour some of the buildings. I really want to see what 5th and Broadway and Nashville Yards are offering.
You can drive almost anywhere where I live - an urban area of 3+ million people, and there are for rent or vacant units and buildings everywhere. Nobody is starting a business in this economy. Half of all new businesses fail, but if nothing is replacing them... I know of one entire building - 7 stories - that has three businesses in it. Size of a small convention center - just empty. Two in one small annex to the side and the third is technically not in the building but on the property in back. The rest is empty.
I would also include in the commercial real estate market, thos 2nd homes / vacation homes / vrbo / airbnb types. Those loans are done the same was commercial loans are.
@jonathantaylor6926 read it again. No where in my comment did I say 30yrs. Commercial loans even on single family type properties are 5yr arm loans based on 20yr amortization. Most rates are 2% above prime with good credit.
Is this similar to congitive dissonance? I am in New England and my rent went from 1500 to 1900 in 2023 and now- 1900 to 2400. My state has less than 1% availability. This is for a beach adjacent (plus) completely unremarkable and old /dumpy 1 bedroom apt in a shitty building.. Its unsustainable. That being said, I am really starting to feel ripped off with reports like these. The ultimate truth is probably somewhere in the middle. But I am thinking I will be relocating in next 2 years.
This brings me great joy. the working class has been struggling for the better part of a decade. It's nice to see the elites starting to feel a bit of pain.
@@daltonl8751 highly probable unfortunately. I think we're to the point where we might start seeing legitimate rioting if corporations get any more bailouts while the rest of us are stuck paying for it. Could be wrong, but it does seem people have about had enough.
The "elites" aren't feeling pain and likely won't. Once someone reaches a certain level of wealth, money simply becomes a tool to them. It's not their entire existence. In addition, the crash and subsequent recovery will only provide more investment opportunities. Having said that, I'm hopeful that working class folks will eventually see some relief.
@@mph5896where is $1600 a month for a 500 Sq feet studio a steal? Beverly hills? Wall Street? Ski resort in Aspen Colarado? Rich people are notoriously incompetent with money management and pay 200k for a DEI consultant for a collapsed bridge when the construction foreman, supervisor, and engineers all get paid less. They're not exactly credible for calling insane rates a steal if their in desirable locations. A Louie vatton bag can go for 7k when it's usually 10k+, it's steal only a "steal" to a seller with a buyer waiting or a status obsessed sheep
It’s definitely a ripoff when the previous price was 700, to 800, to 1100 to 1300 to 1600! Seen this happen in Texas lmao why is it hard to do research before immediately coming at people with opposition. God obviously wants to shut this place down so I really don’t get into the price increase, it’s a precursor to judgement and what the planets next x amount of time will deduce. Since people decided to run amok here it’s going to keep going the way it’s going, downhill and yall are in a train talking like this is the only planet and you can’t see it from outside looking in. You’re all harping on the reality with no realization of why it’s this way from gods perspective. So you’ll continue to argue over politics education and economics. That’s all you seem to want to talk about. Not asking how to turn this around with who it matter the most, all the people you’ve(everyone who’s been born on this construct called earth) done wrong by. Sorry the Bible is hitting(not Christian)
Here in Illinois suburbs, then WHY are they building SO many MORE apartment buildings? NOBODY here can AFFORD them unless theyre MIXED INCOME government funded apartment buildings! WHY?😮😮😮
Where I am there is a BIG glut of large apartment buildings being built like crazy. Everywhere. . With inflation I see them to be sitting empty before long. Ppl are relocating out of here. It's WAY too expensive.
Nick, quite a few economic commentators (one of them is Peter Schiff) have been critical of the way employment numbers are being fudged, I mean calculated by the government for a while. According to them, tons of people are getting temp jobs in addition to their current job in order to make ends meet - which government counts as a new job, hence the low unemployment. Could you talk about why you believe government numbers are correct?
They're raising rents on current tenants, cutting them for new ones. I've noticed that in a local complex. New resident for a 1 BD/1 BA is coming in at around $1150 a month on their website. Coworker who had his lease there for that same apartment layout has been paying ~$1250 a month and for his lease renewal they want ~$1320 a month.
We are now in a 'negative leverage' situation. Cap rates are less than cost of debt (interest rates). This means that deleveraging makes a project more profitable. As a result it's only a matter of time until all this built up leverage and pricing unwinds.
Thank God! My wife and I are struggling with two jobs making a combined 145000 to set a budget year to year where each year for the past 3 years we've had double digit rent increases Neither of us are getting anywhere near that in raises each year. And we definitely want to buy a house it's just been "a year or two out" for the past 4 years
Brooklyn real estate needs a major hit. All the luxury apts are being built for whom??? The uber eats drivers? The migrants? The nail tech? The middle class cannot afford Brooklyn.
We have a development of duplex condos that are newly built and were rented immediately. It seemed they were built to be rented. They are now all for sale.
Was told by a realtor 5,000 people move to Vegas each month and prices will never crash. Also told buyers expect a deal that won’t happen; say $50k off sales price when sales are within 2% of asking. Can’t wait to see these cats at the next job fair for stations.
@@bitemoi arrogance and greed… so let’s do an experiment. I’ll sell you a house that you can rent out and then I’ll raise your property taxes, double your insurance pmt, increase all of your repair and maintenance costs, and raise your interest rates on your term note. But the kicker is you can’t raise the rent because you don’t want to be seen as greedy, even though it will put you at negative cash flow and soon bankrupt you. How does that sound?
@@pearljam_1 Life is tough. I've learned from and have realized landlords are right in their attitude, so...I don't care about you, I care about me. I don't care what your problems are, why should I? Can't afford your property? Not my concern. Sell it.
What about landlords offering for a 12 month lease Taylor Swift Concert tickets, Super Bowl tickets, a freezer full of Tyson chicken, Bud Light beer party or a shopping spree at Target, if they are still in business.
I grew up in Newark, NJ and we know that these multi unit apartment properties are not human friendly. People smoke, kids scream, dogs bark and tempers flare up.
