Nashville's Real Estate Problem | Rent vs Buy 

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most ppl don’t factor in or even know how to calculate the true cost of homeownership… they think it’s principle interest insurance and taxes. They don’t think about annual cost of maintenance, landscaping, unexpected repairs that aren’t covered by home warranty, tools&lawn equipment, hvac, water heater replacement, svc contracts, HOA fees, refresh/renovations, appliances, water pipes bursting, mold removal, foundation issues, pests, tree maintenance, roof repairs, power washing, deck maintenance, windows, sto rm doors… and that’s just off the top of my head. Now factor in that real estate capital appreciation is on avg about 2-3% per annum. Do the math and I guarantee you homeownership is way more expensive over the long haul than renting. Caveat: only if you can do all the work maintenance and repairs yourself does it make ownership more economically feasible, but even then it’s probably still more expensive to own.

You have razor sharp reasoning/analysis skills. I've lived in Los Angeles for over 4 decades, well almost 5 soon. You are correct about the LA/Vegas relationship. Inventory in LA is ridiculously low now. So low, that I personally label it "statistically impossible inventory". As in..."really, no one has a life?" NO death, divorce, layoffs, promotions, relocations, soured partnerships/deals, NOTHING???. So yes, this dearth is forcing people to Sin City for a "deal" (no deals anymore!). But if inventory ever returns to greater SoCal, I think Vegas prices will easily crater 30%, because that's just what happens. Phoenix has a similar relationship, but this bust may not be as dire there imo because Phoenix is legitimately absorbing a lot of California's disgusted businesses and becoming an epicenter for Western distribution centers.

Ethan: the calculus is much simpler . I just researched Wilson County single family homes. The homes we are interested in run about $225/ft to buy ($750,000). I can rent the same home for

Excellent graph!

Condos are usually the hardest hit during real estate downturns. That's because they are a favorite of speculators, who are clueless about their replacement value.

Its cheaper to rent than it isnto buy here. Thats why im renting in williamson county. And even if it was a little cheaper to buy, i need $6k to sign a lease. I need 150k to sign mortgage docs. Its gotta be significantly cheaer to buy before it makes sense for me to tie up that kinda capital

Normal ppl need to find the new fairly priced "middle tn like" area somewhere else in the country... where is that place? :)

There’s always a delta between rent and buy analysis. There’s any number of inputs that create that variability as for mortgage rates being at 7% I would’ve given my first child to get that rate when I was young. My first mortgage was 17%. Thank God, I could renegotiate as they came down.

🎉🎉🎉🎉 Las Vegas is doing well?? That surprise’s the heck out of me 😮. And the Rents going better than buying? That also blows my mind. All this data has been a ridiculous 🎢! I had several properties in California and middle Tennessee during the last crash and I lost just about everything in California and my properties in Tennessee seemed like they weren’t touched at all. You really surprise me each Saturday with your homework and data you bring us. I remember about 10 years ago when that special price mark for buying and selling was about $300,K Now you can just double that and that’s where we are right now. Thank you Ethan 👏👏❗️ You know that I love your channel and truly appreciate what you do for us. Until next week,,, Blessings, Carlos

This is nuts 😂

That population bar chart is powerful to think about.....

Ethan, I have a question for you. Speaking of renting, how are people affording rent? I make decent money, u make good money I'm guessing, but alot of people even in urban America dont make decent or good. I think its only with the help of CC's. I would like to see a podcast with thoughts on America without CC's. Many would be walking around in rags and riding bicycles. What a completely different "landscape" that would be. Peace!

Where do you get the rent data from?

a resident at atalecia told me their view got destroyed by a neighboring building, I would imagine that's contributing to downward pressure in addition to high rates

She doesn't live there any more.. Why post if not true

Tennessee will continue to go up in value the longer this goes on and people continue to flee the states like CA and NY

Hah, Tom Keene retweeted me once as well. I said something about my highschool job scooping ice cream at Baskin-Robbins and I guess he got a kick out of it.

Bro you’re focusing on rentals whose renters are swimming in cash. If you’re someone is lower class, your data is worthless. People in lower and middle class should be buying homes if they possibly can afford the mortgage and planning to refi when rates drop cause hyperinflation will make them homeless when it hits. And it’s going to hit.

This didn’t age well