The normal people are priced out of renting, they go to live in tents or in cars, its illegal to sleep in your car or camp at the park, they are criminalized, the normal people will become unpaid labor.
It depends where you're at and park. Find other public parking that is somewhat private and you're fine. I've been living in my car while furthering my education and working, and the cops wave when they pass. They know I'm no trouble from my record. I frequent rest stops in our traveling region, a spot by a canal so no pedestrians are next to me, a deal with a local (I weed on the weekends and get to park in front of their bush), etc. I charge things at work while I save for a Jackery. Or go talk to a KOA or RV park and make a deal, they act confused but when you explain the situation reasonable ones are willing to let go of the idea that only RVs are for glamping/ travel/ AmeriCorps service.
@@Undomaranel Yup, You have to be wise and kind, and a little creative. I had this theory that cost of living will keep going up so homeowners who need a little money might someday give permission to use their driveway/parking space to car campers. Then I was looking at the dyrt camping app and saw "Toms backyard" for $15 a night and was validated. Granted that was for pitching a tent but same difference. Keep on keepin' on. 👍
@@Undomaranel traveling for events is not the same as living. You can camp in most state parks for a maximum of 14 days before you are legally required to leave the park's land, they track license plates and head counts. Charging things to a work account is not a common perk. No most KOAs and RV parks do not make exceptions. The safety risks are extremely high and many people have families, long term camping is considered child abuse in many states. Kentucky famoulsy took the Naugler's children from them for being off grid. It's much harder then you're making it out to be because homelessness is 100% criminalized especially if you have children.
My partner works in tech and makes an embarrassingly large amount of money for the fact that we can barely aford our rent on a very modest, single floor ranch style single family home (one bathroom, one garage) in the suburbs. These homes were built for, and meant to be populated by the people working minimum wage at the local sugar factory.
The system bubble pops, prices drop drastically, people fresk out snd then it starts all over again. Because the powers that be don't actually care about the people.
Wanna fast forward to the part where every building in every major city is owned by major corporations - and algorithms pick the rent increase based on legal limits and a success rate based renters online profile. Sci-fi? Wait and see.
This happens to a degree, but landlords aren't in the biz to create solidarity among landlords...they are in the biz to make money. If they have too many vacant units to turn a profit, they will reduce the rental rates. Landlords are like drug dealers: there's always someone willing to sell supply cheaper than market rate. They'll even give away supply (just like 3-6 months "free rent" a lot of complexes advertise) in hopes that you'll be too lazy to move once you're there. Haha! I move every time I get an rent increase notice. I'm paying less for rent today than I was 4 years ago. I mean, apartments are just boxes with kitchens. They all basically are the same. Pick a good location and price and move to a new apartment. (I do all the moving labor personally, so I am a minimalist to keep things simple).
@@MsGenXodusFree rent comes with clauses of 1 or 2 yr contract. Free month gets invoked after 2 months. Even with rent increase, it's cheaper to stay because of rent control. Because market rent increases faster than my existing rent. That's what my experience has been all my life. I move when the women's nagging becomes too much.
Yes, I think about how concerning and unsustainable this is all of the time. I’m seeing in my area that rental prices have become double or more of what they were just three years ago. But it’s not like people’s incomes are suddenly doubling, so how does one manage or navigate that?
@@kingdre7492 Here in MA they say that an individual needs to be making 116k a year to live comfortably and this figure was around 62k less than a year ago. So, I don’t think most residents are in that income bracket. Imo, landlords need to start better serving the community instead of just greedily lining their pockets.
If you want to see where the US will go if house prices continue to rise then look at Canada. Houses have doubled in price in 15 years, you need a massive down payment AND a good job to afford a home without dual income. Many households are at the breaking point where they are perpetual renters that will never own a home. Basically the only real options are getting more aggressive in your job search/retraining, wait for an inheritance, or leave the country for somewhere cheaper. The final and most practical option is that multi generational homes are becoming more common, kids don't move out or parents move in to all pitch in to take on the mortgage. It's tough economic times.
Yup! Canadian here, 27, been living with my mother (sort of, she works out of town most of the time) and paying her cheap rent since college, and when she retires in 5 years I'll be becoming a joint owner of the house and take over the mortgage payments; one of us will then live in the basement suite, the other upstairs. This is the ONLY way I will ever own a house in my relatively rural community that isn't a trailer in a trailer park or a sketchy condo 😅
They are going to be forced to go back to what people did before 1940 when 2 or more families would have to share one apartment or many (5+) individuals without children would end up sharing one apartment. The days when illnesses ran rampant and plumbing was a new not required by laws time period, where apartments were over crowded and uncomfortable, is what we are heading straight for. History is repeating itself.
@@lolalola1352 yes but in a time where law breaking is being over looked in many cities, it would not surprise me if they did this “off the books”. I would not encourage them to do this but it would not be surprising if they did.
Your premise is good, your points are valid, your financial numbers are good. What’s not good is your population math. Those are impossible numbers. Do you mean to tell me that every single child in this great country either owns a house or is renting? We are a total of 350mil people, somehow you have 215mil owners and 115mil renters. The math ain’t mathin.
His proportions are right. His numbers are wrong. The homeownership rate oscillates 60% range implying around 40% of residences are occupied by renters. Where he's wrong is that those numbers are normal from a historical perspective with the exception of times like the lead up to 2008 when the federal government decides homeownership should be a participation trophy.
Well, I think he's translated the figures from households to people. But what it comes down to is 66% of Americans own their homes and 34% rent. But I'm tired of hearing about how impossible it is to buy a house because that narrative is bullcrap. My son is turning 25 next year and is buying a home without my help. What he didn't do is spend money on a new car, buy the latest expensive mobile phone, waste money traveling, take out a stupid amount of student loan debt, rent a posh apartment or buy really expensive furniture. He saved his money and invested it. He studied and got his degree in a high-demand field (engineering). He already has close to $80k saved that he's going to roll into a mortgage. He's also not looking at 2,500+ square foot houses. He's looking at smaller (1.5 - 2k sqft) starter homes which he can easily afford. So for all of these millennials crying about home prices, he's a post-millennial who has already surpassed you because he was wise with his money.
Freddie is so smart he sees the problem unlike other RU-vidrs who act like if you can’t save for a down payment and closing costs you shouldn’t buy a home while they benefit financially from owning a home and renting is significantly more expensive
Owning is significantly more expensive than renting. A 1k mortgage doesn't equal a 1k rent. Its entirely possible you are financially better off renting than buying. Not saying you shouldn't own. I hope everyone gets a chance. But ownership is extremely expensive.
@@pdxmusl1510 Obviously not in the short term. But in the long run, even within less than 5 years total, owning your own place is far cheaper. It's the easiest way for normal people to build wealth.
@@cpK054L tell me you do not rent without telling me you are not a renter😂😂😂 the renters understand the stress and hassle of renter and the financial burden that comes with renting! 3X rent to move in. Buying all new items each time you move because the house is bigger smaller has central air and you bought a whole bunch of ac units the list goes on moving every 2 years paying the same money please only time owning a home is more money is when what you need a new roof water heater that doesn’t happen often😂 by then you have equity or you save money from inflation rising and cost of living going up your costs were fixed now your income has gone up you can easily pay for the repairs when renting your money never protecting you from inflations never ever!
In either scenario you're a renter. You don't own shit in this country. Property taxes are the rent you pay the government. Just see who really owns your home when you stop paying them, and there is nothing stopping them from increasing it 10x. Pure evil.
There is no society wherein you truly own the land you "own", you merely have the right to exclude others from using it A land value tax should be adopted
You pay property taxes because you benefit from things like a power grid, running water, sewers, garbage collection, police and fire department, schools. And before anyone says I don’t have kids in public school it benefits you because the people around you send their kids there and are able to be productive members of society. If you don’t want to pay property taxes go live somewhere without 0 public infrastructure.
But the government will tell you you're happy. I remember ten years ago when I turned 30 and was struggling trying to get into a house being so frustrated with stupid, lying news stories constantly bombarding me with, "MiLLeNiaLs DoN'T aCtUaLLy wAnT tO OwN HoUsEz bEcAuSe tHeY pRiOriTiZe tRaVeL aNd MoVinG tO SwiTcH JoBz." The system works to crush us, break out souls and tell us its either our fault or what we want. ¯\_(ツ)_/¯
Should read You’ll own nothing and be miserable because the corporations will literally be allowed to defecate on us. Now they just figuratively defecate on us.
Sad, but true. Just like they forced us into a duel-income household economy that we've all just shrugged and went along with, so too its happening now with multi-generational households. Keep squeezing the Plebes and moving the wealth to the top. #Murica!
You “own” it as long as you pay the property taxes…otherwise you’ll find out who the real owner is. That’s why the banks force you to pay property taxes into your escrow account.
if you wanna see what happens when rents keep skyrocketing, look at cities like New York or Vancouver BC. you'd be amazed how many people can share 2 bedroom apartment! sure, it's horrible for the people who have to live in these conditions, but it makes landlords a lot of money so, y'know, ups and downs.
Let me ask you this and I don't mean any disrespect. Do you know the difference between needs and wants? I was up to my neck in debt until I went to a financial consultant/planner for $150 and it changed my perspective and I got rid of all unsecured debts.
We will all be homeless that’s the bottom line. Everybody will be living out on the street. It’s sad to say it’s all about greed and power. That’s the bottom line.
One thing that's been brought up a lot is that for most of history, even in North America, it was common for generational households. The whole idea of young people moving out on their own was never the norm. It seems living at home into your 30s or living with extended family will need to be the move going forward if we don't pump a bunch of affordable housing into the market as quickly as possible. As much as I'd love to live as an independent man in my 20s, I don't think this is realistic for most people anymore.
@@tpd1864blake there's always differences in people's situations. I think if you can tolerate living with them, then it is the most rational choice. I personally strongly prefer living on my own, but it's just not worth the price of giving my hard-earned money to rent. Not everyone's family situation is the same.
It would be better to have a multi household cooperative situation, where several friends get together and buy shares in a property. Independence and adult living instead of staying as a child with mommy and daddy
@@patlong8449 I've had a friend suggest this. I'm not entirely opposed to the idea, but I'd need to look into drafting a solid contract and making sure I get my share of equity when I move out. Not a bad idea though. It reminds me of the college days with housemates. That was a good time, but I am no longer in my early 20s.
You'd need a properly drawn up contract, witnessed etc, including details of what happens in the event of death, disablement, every negative life event everyone can think of. Even children would need to be covered, would that mean that person moving or not etc.@@nelsoncorreia7293
Despite all the financial struggles I and my family faced, everything is finally falling into place! $47,000 weekly profit and riches I'll always praise the Lord
Elizabeth Regina Nelsen has set a precedent for others to follow. We cherish her here in the UK as she has been extremely helpful and made a lot of lives better.
Ifs only a problem if rents are high. In vienna (and other places in the world) Public Housing is abundant and aimed at working people, not dysfunctional people. And rent is then cheap and works very well
We own our house still have a mortgage on it.. we only pay about 17 00 plus another hundred for homeowners insurance. And even with owning a home that we've had for 13 years I still feel poor and I still feel like I can't pay my bills.
Alot of misfortuned families and individuals living on the streets and the slumlords are upside down on their mortgage(s), either selling off their property to stay afloat or they file for bankruptcy.
The mortgage payment number needs context. That $1500 figure includes people that obtained their mortgage 15, 20 or 30 years ago. Of course it is lower. If you got a mortgage today and paid $3000, how would that same $3000 you will be paying in 30 years compare to the average rent in 30 years? Here is an example: My parents bought their first home in 1964. Their mortgage payment was $114 per month. I bought my first home in 1995, the mortgage payment was nearly $1700 per month. Smart people will do whatever they can regardless of the market conditions. They will be the wealthy ones in the future. People that just sit back and complain will still be complaining and still be poor no matter how much time goes by.
I like the statistics, but your final question at the end doesn't make sense. So obviously if someone raises the rent to where people can't afford it then their house would sit vacant and they earn $0 in rent for every month it's unaffordable. That's dumb. If a landlord chooses to have no income, they're not going to be a landlord for very long.
First, I want to say as someone else pointed his stats are bit off. But the overall rental prices are outstripping what people can afford. Two, currently there are about 15,000,000 vacant homes (no one living in them). Blackrock (a PE firm) has been buying up whole neighborhoods in select areas. But it's not just Blackrock but also Vanguard and Roark. In some cases having those on the books appears as a cost which is actually beneficial as it lowers overall taxes. In general so long as you are net flow positive, having vacant property is not an issue. Plus you can use as part of leveraging for getting loans to do other LBO's (leveraged buyouts).
You dont understand that owning means you are responsible for repairs. Regardless if you own or not, something goes wrong, you have to pay for that boiler, awning, gutter, etc. Im lucky we found a spot where we rent and our landlord is amazing. Our fridge was broken, he brought a new one. Stove went kaput, replaced. My point is Answers arent always black and white. Would you buy a house if you are single and drove airplanes commercially 10 months a year? Would you buy a house if you drove a semi trailer 11 months of the year? Would you buy a house if you were an executive changing jobs every 1.5 years? Life has nuances
In your first two situations, you would be smart to buy a property and rent it out. When you are ready to retire or switch careers, end the lease and move into your home that your renter bought for you.
i don't think this is a video of pros and cons though. he's asking what's going to happen when salaries don't increase, people can't afford their rent and landlords then can't keep their homes.
Growing up my mom rented all her life. Before i left her place i i would tell myself and my girlfriend i would never rent,dont get me wrong she did what she felt was right and i never could complain,thoe i new we were living as por renters that made it every year by moms efforts and God's grace. When the time came around as scary as it was to be on my own i built the guts to walk in to a real estate agency and speak to someone,why not ,i had a decent job. Was not easy but not impossible. We ar all meant to be and live happy. Dont take you obstacles as a problem,but as a learning curve,you must work around of and pat yourself on the back. It helps to not go at it alone,have a working partner 50/50 and trust is a must.
As long as the other 250 million are happy and fat they will absolutely tolerate 100 million suffering, as long as they don’t have to see it. The numbers DO NOT matter. Only the economics and psychology of it.
Not all will be homeless. Likely people will start filling apartments and property meant for single families with multiple families. People will probably band together to save money sooner than be completely homeless.
Not only are rent increases driving renters into homelessness in the worst cases, but, in the best cases, renters are unable to save any money for down payments on a home (not that the down payment would do them any good anyway when provate equity is outbidding all single families submitting their best offers on what they pray in futility would be their first home).
It wouldn’t actually help. The rich Americans would just buy up those homes. The nationality of the owner doesn’t matter because they all want the same thing
@@Michael-pi8psit matters. More land more property available for American citizens matters. You can't buy land in China. But a Chinese person can own as much land as they want in America. Without even stepping a foot on American soil. It matters
Corporations shouldn't be able to mass purchase homes, then price gouge. There's also a lot of empty houses because these corporations have a degree of control over the housing market and the homes are being priced out of the realm of what the average person actually makes that would normally be able to afford said homes.
In 1980, 34% of Americans rented. In 2024, the percentage is 36%. There has not been a significant increase in the percentage of people renting. There has been an increase in the rent adjusted for inflation because in 1980, rent was still largely based on a single wager household when married women had still not fully integrated into the workforce. Today, rent is based on a two wage earner household.
My payments all in with utilities (gas, electric, garbage, water) and property taxes are about $2200. Even when I get the mortgage paid my utility bills plus property tax will leave me with a $750 bill a month. I remember renting for that ten years ago. At this rate my property taxes plus utilities will be astronomical in ten more years.
You don't technically OWN either, considering you pay property taxes that gets assessed to market value every year to the government. You rent from the government if you OWN a home.
This is why squatting is going up. Many who squat view it as a form of protest and I don't blame them.. Why is housing, a LIFE NECESSITY treated like a commodity? It is by design and it’s cruel. This is why birth rates going down too.
@@chiplangowski3298 but with my system you don't get the choice to rent only buy and there's 0% interest if you move out you lose the $ invested in the place from renting so its in a persons best interest to live there till place is purchased
Home owners pay property taxes, insurance, home repairs, and watch out for HOA! He had some good points, but there is no $0 cost for home owners. When you rent your landlord is responsible. Still liked the video.
@kitkatcasey427 really? The only repairs im responsible for are damages I create. My friend said she and her husband had to fix the bathroom. They rent. That's nuts!
What comes up must come down. When the majority of people can't pay rent, then they wont. They'll find another way like getting room mates, smaller places, living the van life, moving, etc. Then inventory will skyrocket and sellers will be forced to cut sale price and rental prices will all move accordingly. Its a cycle 🌊
One of the biggest risks a landlord faces is vacancy because then they have to pay taxes and insurance and sometimes utilities. They also may face maintenance issues as well. Therefore a smart landlord will set the rent at or below what the median income in the area will allow. The fact that ownership is cheaper than renting is the way things have been before. In the seventies it was the other way around due to tax laws allowing landlords to purposefully take loss. If people can’t afford to buy a home then the prices will go down. The fact that they are going up means someone can pay the prices.
I’m a landlord and it’s almost impossible to have a vacant property these days. Renters are lined up and on waiting lists for properties. No matter how high the rent is
I've been a landlord for 14 years. In that time, I've never once raised the rent on any tenant. Part of the reason is what you described...a few months of vacancy can really hurt. Part of it is wanting to reward good tenants, too, instead of putting the screws to them. kingdre7492 is also right. In today's market, demand exceeds supply. For everyone's sake, I wish we had more stability in the market and higher income for the average Joe.
There’s a movement among politicians that no one is talking about that wants to call not paying rent “income” to tax people who owns homes more. As in, they want to add to your taxable income the amount of rent you would have paid if you didn’t own a home. The powers that be want to price you out of home ownership even more than the market is already doing. They really want everyone paying rent.
Reminder that housing commodification has been a disaster for this entire continent. Housing is made primarily for the highest bidder, usually investors looking to suck up units and then put them out as rental units, meaning smaller, more expensive units for the increasingly few people that can afford it
Exactly! People act like these problems are some unique American creation and that the entire rest of the world is a utopia where everyone can afford everything they want.
Not saying this will fix everything but these tips are very helpful: Buy second hand Pirate everything Don't consoom merchandise Don't buy "luxury" Buy white label Fast foods are literally more expensive than proper restaurants now, no use going to them Don't overeat Don't do drugs If you really really want figurines/miniatures, use 3D printing, specially for WH40k where the armies are so expensive that the printer pays for itself on the first army If you really really want cards, use proxies If you love going to concerts, then just get a deeper music taste because big artists overcharge Don't goon for hours when you could finish in 15 minutes and then do something better Don't be a gymcel. Unless you're losing weight nobody will care about your gains. You can brag about "the challenge" but you could use the challenge elsewhere. No gym for your face. When time is money rotting 10 hours a week in a gym is a net negative If you can, move out of the cities It's ok to live with your parents in your first years in the job market. People judge it but it's common and it's not a thing to look down upon to be with your family Use adblocker
Homes in California los angeles and orange county are average 800-1.2 mill jist for a reg home.. at 7% rates, sometimes renting is only option.. it's a tough economy out there fir everyone
@@YaNeK92 actually chicken little was a book published in 1918 . Your point is also irrelevant as “ chicken little “ Represents a “ sky is falling” perspective in business or economics . How d u m b are you ?
@@jordancarlin9687 wtf are you talking about? 😂 If you've never read the book and don't know the reference just run along and leave the comment section in peace dude 🤙🏼
They absolutely can. That’s why the principle of forcing more people into less space (getting roommates) is being pushed so heavily by landlord companies. And I’m not talking about college students, I’m talking about families of 4 having to rent with newly-weds in order to afford a 3-bedroom apartment.
I’ve always dreamed of having my own house ever since I was a little girl. I’m in my 30s now and am renting a small apartment and am close to going broke. I guess I’ll just keep dreaming. 😔
Fixer uppers sound nice, until realtors tell you no and it has to be bought in full. Tried it 4x, all were listed no, looked in on it, and was told it had to be paid in full....maybe i did it wrong 😂
Well conforming loans need the house ready to move in. If by fixer-upper means it's not currently habitable then a bank will not give you a loan for the property. I.e. you will need to do an all cash deal, have the cash, have the seller give you a loan or borrow from a non bank lender or non conforming loan from the bank. (Those loans equal more risk so higher interest rates/credit score).
If only there was a mechanics where if someone gets too drunk, they pass out instead of dying of alcohol poisoning……..hmmm can’t remember my memory seems to BLACK OUT. (Replace alcohol with the economy and excessive spending.)
The future you mentioned is guaranteed to happen unless things drastically change. Most Americans have no idea how incredibly bad America economy is atm. When i say economy im including the government. Entitlement programs like social security are guaranteed to suffer and taxes will go up tremendously within the next decade. Long story short things are likely to get worse not better in the long term.
Yes exactly, it's actually ironic that I stumbled across this video, within the last few weeks I have discovered that the value of my house has gone up at such a faster rate than my actual income, if I was to put my house on the market right now I couldn't even afford to buy it, there is something really broken with the economy right now, in my house is actually not impressive at all, it's just a little 100-year-old house with 1100 ft², honestly my house should not be worth the amount that my loan company is claiming it's worth in my equity, and yes I'm worried that a housing bubble is going to burst and then I'm going to be upside down on my house, just like what happened to my dad in late 2000s
Right! People think that the price will just go up infinitely? Where everyone is homeless. This guy really believes that once you own your own home you off Scott free and you are not! At the end of a 30 year mortgage you have a 30 year old liability not an asset.
I rent an apartment for less than $2000, and getting a mortgage in Seattle would mean at least $4000 monthly payment, of which half will go towards interest. Buying a house just doesn’t make financial sense to me with the current interest rates 🤷♂️
Some of his math is off bc I make $100k and still wouldnt be able to afford a $3k house payment monthly. I mean, I guess I could but it would eat up half of my check and then Id still have bills. Also, why would a $187k mortgate be $1500/month? Im looking at a $280k house and putting $115k down payment, and my expected note would be like $800-900.
America has turned into a third world country since the beginning of the Covid pandemic, 4 years later it’s getting worse. Just take a look at our annual deficit from 2020 to 2024 and beyond will be even higher, that’s what is going to make this once great economy for everyone a thing from the past and we will never be able to go back. So many people moving to other countries and they are so happy with their new life.
Damn 350 000 USD is so goddamn cheap, houses in Asia are way more expensive than that. With a wage that high, how on earth are you not able to afford a house?
Earning money from just owning things shouldn't be a thing. People shouldn't be forced to subsidise someone else just to have a home. If anyone should rent out homes it should be a non profit or the government. But we don't need to make it outright illegal to rent out we could simply make the property taxes very progressive so that owning one reasonably sized home is not taxed but every additional home rapidly increases the property tax until it's not economically viable to own to rent out. You could then make some exceptions for non profit rent to own systems. And the government could of course own and rent out.
That sounds like a great way to decrease the supply of housing. The higher the landlords' expenses, the fewer homes will be built and the higher the rent. And existing homes will be neglected instead of maintained. In many places, homestead exemptions already cause the tax on rental properties to be multiples of that on a primary residence. As for the government and non-profits...Have you ever seen public housing projects?
Interesting stats. Wonder what those figures are for uk? I know people who have alright jobs and rent and their outgoings are similar to mine (I pay a mortgage). But one day, my mortgage will be paid, but those folks will be paying rent when they are too old to work and the uk state pension ain't great
This is really worrying, we are havnig the same issues here in the UK. One thing that I did was to buy a boat as my place to live. I like your channel and you are saying is true, but you might want to talk about some of the alternatives in finding places to live. IE Van life, or living on a boat, people buying land and building a mini home?
You are still responsible to repair whatver breaks, imagine you are flying and your tenant calls that a pipe burst. What do you do then? Hire someone else? Now thats an additional cost. Id rather invest my money elsewhere.
Wait until you factor Apartments in this equation. The cost to rent per square foot is even more alarming than the income discrepancies between renters and owners. After 10 years of renting, you’re pretty much throwing money away.
