my son's sides are very close to the coated door and we have seen many knowing that sucks waiting good to have a permission to go. and i have spoken to many a truck that i bought us uh on the sea and all of them are very tired and exhausted. busy takes the long process to be allowed due to income. and uh, the biggest challenge is the tvs approve of from the size and they have also to fix it as fixes on some of the supplies. some of them are they coming machines they, they don't allow them. some of the also uh, shows the supplies. busy a lot of them and they, uh, categorize those supplies as a potential risk for them. so we are doing a lot of work in order to, uh, push our,

our supplies to go through. if we have a tool in cation to save people, and to lift the risk of finding lift fiscal step, we should open up the call regards to southeast asia. and amazon prime is so i don't know why a brain has christian science. the you, as i'm the attempting to impose very will, i'm compel his country to take a side in the west rivalry with china. the statement was made against the backdrop of the c on australia, special summit doing a joint press conference with australia, apartments. we are independent nation. we have fee is the independent. we do not want to be dictated by any force. so was really meant to be an in boston, a friend, due to not just the so you and here to see it. yeah. they should not to recruit us

from being frenzy to one of our important neighbors just as the china. and if they have problems with china, they should not enforced upon us. we do not have a problem. and then what i is employment is i went onto choose the where, so china be, i know this is the b jane is his nation's largest investor. the summit began on monday amount 50 is and so so that became the 1st official pano the us, the block. oh there we saw it was due for the side of the report. a fly who done to the china is invest in billions in millions and relations between the 2. ongoing foster, a little china has been building the belts and the road initiative for quite some time. now it's 10th anniversary. just passed us in october of last year. this is a country that is building bridges, not bombing countries, and they are gathering partnerships by investment and relationships,

not by intimidation which america uses that game plan all the time. if we're talking about these, their infrastructure investment, there is billions of dollars of infrastructure projects in these 2 countries together because you know, this is part of the belt in road an issue. now there's also a lot of in the direct investments, whether it's, you know, exports or in ports for factories, whether they're new energy vehicles or whether they're logistical chains that are opening up in these parts of the world in southeast asia. this is hard to determine how big this figure is because it's growing so fast and it is really connecting these countries all along the way. so to put a figure on how much china has invested, or vice versa, how much as malaysian welcome investment is a really hard figure, but i would say that it is definitely growing day today or that out of this thing is out. christie. i is on the costs of everything. i'm next. i will be back at the

top of the hour. the latest that one is on the buying a house. used to be a rite of passage for any adult. you go to college, you get a job, you get a house and you settle down. and that used to be the trajectory of life for most people back in the day. but with mortgage interest rate at over 7 percent, many can't afford to purchase a home and they end up renting home ownership has become an elusive goal to achieve . i'm christy, i'm. you're watching the cost of everything we're today. we're going to be

exploring the rising cost of rent and its implications on home ownership. dreams the, the costs are run, has been on a relentless climb, outpacing wage growth. in many areas, this trend is especially concerning for younger individuals and families, as it's significantly impact their ability to say for a home. as a result, many young people find themselves caught in a cycle where a significant portion of their income goes towards rent, leaving little room for savings. this makes the prospect of home ownership seem like a distant dream. when you rent your essentially paying for someone else's investment, home ownership allows you to build equity, which is a crucial asset for future financial stability, retirement. and generational wells building equity involves the gradual increase in

the value of your home overtime. essentially, as you pay down your mortgage, this becomes a form of savings that can be tapped into for various purposes, such as funding education, starting a business or ensuring a comfortable retirement. it is a way to transform the monthly cost of healthy into a long term investment. but the inability to participate in this equity building process can create disparities the echo through the generations. this current trend could potentially create a divide and wealth accumulation amongst different demographics. unfortunately for buyers, home prices have continued to rise in 2023 with the median existing home prize at $413000.00, which is a year over year increase of 3.4 percent to. now a common rule of thumb is the 2836 rule, which says that a home is affordable when your housing expenses, which include mortgage taxes and insurance payments. don't exceed 20 percent of

your gross monthly income. your total debt, including your mortgage. other loans and credit cards shouldn't be more than 36 percent of your gross monthly income as well. home ownership rates for young adults dropped from 45 percent in 199241.6 percent in 2021. the number of 1st time home buyers decline to just 26 percent in 2022, which is the lowest level since the national association of realtors began tracking data. this represents a significant drop from 34 percent one year earlier. rising mortgage interest rates, having helped either jumping from around 3 percent during the pandemic to around 7 percent. currently home buyers out of $3000.00 monthly mortgage payment budget have was $30000.00 in purchasing power since 2023 due to inflation. the millennials are the largest generation in the us and also the most unique and that

they do not value home ownership. 2 thirds of them say that it's a central part of the american dream, but it's been a struggle for many aspiring millennials to buy a home. these mid twenties to early forty's, some things face a tough market. there's low inventory, high inflation, and expensive financing. and this combination has created an affordability squeeze that is forcing many millennials to keep on renting. in addition to being held back by financial considerations, many millennials are in a general pattern of reaching life milestones later. the average age for getting married has been rising. subsequently, millennials are starting their families later to so they're waiting to buy homes. meanwhile, 24 percent of gen z and 11 percent of millennials are living rent free with our parents or friends. white households tend to have the highest rates of home

ownership in the us at 74.4 percent, followed by asians at 61 percent. and then hispanics of 48.6 percent. and now today we're joined by real estate economist ken johnson. glad to be are now can with the rising run prices, what challenges do individuals and families face in terms of housing affordability? so in recent years, rips have been rising in the us and in general, around the world. and what's been happening is a family formation. this finally hits new stride if you will. so we have a number of people that are forming those households for the very 1st. so family or household formation. it's not just the birth rate, but it's also family formation. also formation and people migrating to different parts of the world. so we're a, have a, a mis alignment, a president misalignment of the demand for housing of the supply of housing in

particular parts of the country in the us. so. busy we're seeing rents, but relatively speaking on affordable with respect to income board. the board demand in a given area is driving the demand is out stripping the supply, which is driving up the products. it takes some amount of time to develop units to live in. and oh, to live in it wraps. so you just flip a switch and create the supply. that's necessary. interesting way the risks on average in the us have been trending downwards the last few months. so now with the rising trend towards urbanized ation and changing lifestyles, how has renting become the preferred choice for some individuals or families? sure, so there's a couple things going on. house housing is really good that has 3 aspects to it, isn't necessary. good. and we all need shelter. so by taking that side,

we still have to other aspects of housing that, that most people don't think about as about consumption and investment. so how do you answer this question? depends on the trade off between consumption and investment. from a strict investment standpoint, i've been part of research that shows that on average, renting and re investing those models that would be otherwise put into home ownership actually produces greater well on average, that home ownership and building equity. very interesting way though, the difference is very small, so you have to ask yourself, what is it that you want to do? and then you have to make sure if you do rich and reinvest that you do that, my master, this is a commitment. this is an investment to you if you end up renting and offering him best thing, that is the 3rd choice, which is by far the word. so the 3 choices,

edit is actually well destroyed. what are the advantages and disadvantages of renting? as opposed to buying a home. sure. so some of the advantages to renting is you can be more upwardly mobile. it is far easier to. ready to get out of a lease and move from miami, florida to new york city to take advantage of a job offer. then it is to sell your home in miami and then move to to new york and either rent or, and, or re purchase. and there are some reasons for there's some tax reasons why you want to repurchase. so generally speaking in the us, what we say is once you transition to home ownership, you usually don't transition back, although that started to be broken. so, but one of the big advantages to, to, to renting is that you can pursue those professional goals a little bit easier, because it's easier to move from miami to l, i life to chicago, etc. thank you so much can, but please stick around. 10 johnson will stay with us right after the break,

and when we come back, who is to blame for the rising cost of rent? we'll have more after the break, the possible to get lost in time. well, come to kentucky and see for yourself here. several groups are remaining in their own bubble of sorts, surrounded by these beautiful last ancient additions and culture. and if we come this far, we know that it's going to be worth the journey. the housing prizes are had a higher the rent is also getting more expensive. sense depends. i make

a rent has increase 29.4 percent overall. for a single family homes, the increases have been much higher at 35 percent compared to multi family homes. a 23 percent typical asking rents in the us are now at a $1982.00 on average representing a 3.3 percent increase compared to the same time last year. rent has been increasing since 2020, from a variety of factors, including installation, lack of inventory and a shifting workforce. as a pandemic increased opportunity for remote work, renters sought larger homes and areas that had previously been an accessible and relatively low cost. this migration increased runs in the suburban areas more than it lowered them in urban areas. yielding a net increase in rents. renters are also increasingly looking for a studio and one bedroom apartments driving of demand for available housing.

prospective home buyers are also remaining renters for longer, as they face high demand and low inventory of existing homes and rising mortgage rates. generally household that should be spending no more than 30 percent of their gross income on rent. that means if a household or as the us median income of $70784.00 annually or $5899.00 per month, the goal would be to spend no more than one $1770.00 per month on rent and well, only your own home is consider the american dream. romania actually. * celeste with 96 percent of household owning their own home. this results from a mix of tradition opportunities and housing affordability followed by china and me and. 7 a 90 percent and russia at 87 percent. meanwhile,

countries that has the lowest homeownership rates include switzerland at 42.2 percent. germany at 49 point one percent and austria of 54.2 percent. for these countries, affordability also plays a major part, but social housing is also widespread in these countries. so for this and more, let's bring it again. real estate economist, ken johnson, how the individuals way the decision to rent versus buying the home. wow. yeah, i took the question the other way when you 1st there. so what should be on that list? they should be asking themselves names all. i'll go from both of consumption side and then i'll go over to them to the, to the finance side, the financial assets, side, the consumption side. you need to ask yourself, are you happy with your location? they are you happy with a few less amenities? you know, that's because that's what you're getting when you read you. you take the,

the standard package, so to speak. you, you get what you get of some other advantages are hey i, i personally, this is truby. i'm horrible working with my hands. and when you own a home, you have to consistently be maintaining that home and you're either pay for it or you're doing it yourself. so you have to ask yourself those questions. are you ready to actually do a lot of this yourself or commit to the financial commitment to, to, to making these repairs enough, right? when you're renting, you don't have to worry about that, that's consumption. so now all the investment side, you know, again you get to move if you, if you're a renter's, you get to more easily relocate for that they are a better job offer, right? so but on the consumption side, again, you're just giving a 19 year old meal. we all like our own cookie. so the red thing site

from a consumption standpoint is sometimes a little bit preferred. uh because people are, it's in love with the amenities and then they like to trade where they can make, oh, my gosh, i can pursue a career a little bit easier. so what you tend to say is a bifurcation in the age groups, for example, young upper level people are more interested in renting today and then perhaps ever before. and as you become a little bit more seasons like myself. so then we tend to think, well home ownership i'm, i'm kind of the peace of mind. ready we're, i'm getting there, i don't need to move around the country. i'm happy where i am. my family grew up here. so you see generations that are a little bit older. they're more happy with home ownership and generations that are a little bit younger or more interested in renting. but the differences are small. and again, i would just encourage anybody that's out there. remember, you can either own and build a way you could rent and not really invest those mines that you would otherwise put

into a home ownership. or you could rent and re invest those movies that you would otherwise put into a home ownership. the number one and number 3 produce nearly similar results in terms of wealth creation. overtime, but not for like i said, they're not dramatically different. so, but if you are going to read absolutely have to make sure that, that you're committed to making those investments. if you're not, you need to own the home because it will force you to say, how do attitudes towards renting versus buying very among different generations, such as the millennials, where is the gen z z and the baby boomers. so we are just on that a little bit as you get a little younger of folks and in the us today. and i believe around most of the world that are little bit less connected to fill that recessive, the, the whole, the whole. what's the reasons for this to as the. ringback the investment

opportunities for those that are coming along at this point in time they're just entering their prefer. busy tional careers, they're more investment opportunities, spots all sorts of, all sorts of financial alternatives that they can invest in and save and say for retirement. and going back only a few years, the, there was far fewer opportunities that you could invest in financial opportunities that you could invest in as an individual. and therefore home ownership was very popular because it did go up and down on average. so it was the, the, so that's a housing became a financial asset as well as a consumption. good. so, you know, how did we get here? little bit of preference a little bit over the fact that there's more options. and the fact also again, people realize when they're younger, maybe we want to be a little bit more mobile in our age groups or are we see our biggest generational

pretty so. ready well, well, be the, the gym disease, i get the generations mixed up. some of the younger generations well starts out number everybody else. and so you might see in the us a little bit more explanation to, you might say a little bit more inclination to the right thing. but i don't think we're going to become a richer nation by that. where by that i mean more than 50 percent of households or reading as opposed to holding that number might go down into 60, on the high fifty's. it's not good dramatically change in the next day or so. are there generational shifts and preferences for long term renting over home ownership? absolutely, i think some of the generational shifts that something that we're not talking about because you mentioned the long term rent to something that we're beginning to see in the us. and in parts of your to my understanding is this concept of short term renting where you're not having these year long lease. ready and the landlord is,

is they're going more than even the long term leases. they're, they're perhaps maintaining the utilities of doing a lot of the maintenance for you, providing other amenities. so you see these big workers a are now very mobile and it doesn't really matter. they can work from home and kind of a, it may be as a passing fad. but at this point in time there's a, there appears to be appears. busy to be a number of these gig worker types that are well wow, i want to be in florida in the winter and i want to move back to michigan for the summer. so why did, why. ready take on the home ownership or long term lease is that stopped me from doing it. it doesn't matter if i'm warranty in miami and in the winter time that in harbor in the summer i work anywhere. so i think that it's becoming an alternative is that because we've only had really 2 until this point in time where it. busy was

either you, oh, are you long term rent it? short term rentals are becoming a thing. and are there some unique challenges faced by younger individuals in accumulating the necessary funds for a down payment? i think maybe people disagree with my answer on this. so you have to look at the timing states. so where we are in the economic cycle, we are clearly not affordable period in housing right now, but we've been there before. and then there's been more formal periods, so they all correspond with when you're at the height of the peak of a housing cycle, you're going to get a lot of an affordable house which are at the bottom of a housing cycle. the issue of affordability tends to go away. so really is, so are we at a time that is unique and never happened before? where so uninformed was very difficult to to build up that down payment and all the bodies that. ringback obviously the answer that is not we see periods just as tough

as this where your income relative to cost or. ready or uh wow, we've been there before, but that's because we built up a piece of housing cycle before. so the one i'm thinking of is my generation coming out where unemployment was double digit and interest rates are 17 percent. and that down payment was always very difficult to come up with because incomes were lower relative to price. there's all sorts of problems that we saw today. we're again, we're at the peak of the cycle. but if you compare this to just say 2012, when we're at the bottom, the housing cycle in the us that was that difficult to, to get into a home ownership. it was one of the easier periods of time. so i guess my answer is qualify, it just depends on what periods of time you're comparing this to. it's no more difficult today to get into a home ownership. busy as a pizza, the housing cycles i back in the early eighty's the. busy eighty's and today. busy

we're all relatively, as difficult as today, but it's far more difficult today to get into a home ownership. and it was just a, a decade ago for younger individuals entering the housing market. what challenges do they face in terms of affordability and competition? so couple things that definitely we're in a very on affordable. ready right now what's going on is both rims and prizes shot up in the last 2 years relative to our incomes. this has happened before the way we tend to solve that historically around the world, because again, we do have price issued up. they'll be that means that that amanda's out stripping supply, so you decide to build more units. and so how quick can we. busy the units that is an issue. so then you get this very, you'd have this period about affordable housing, both on the rent side of the home ownership side. and the way people in historically solve that is they start to move in with one another, the density, an average number of people living per unit actually increases. so i'm going to

show my, my c finality here, if you will. i'm a buy age if you will. so we used to watch the com such as of the odd couple. the goal. ready and girls, those came from real life situ. busy and that's how people have historically dealt with unavailable housing, curious, a housing crunch on both rent and home ownership side. so you see multi generational living. these are roommates situations, alternative forms of housing will also become very popular by that. i mean mobile homes primarily must for housing so but we've been down this. busy before and the way we will solve it, this time will be the way we solve it every time before. we will simply start to double up, if you will. not exactly the more people living for a unit, and you will probably have a lot of these od roommate, situations and that that passes with time because our incomes are starting to rise

with prices. the prices are flattening out. red surprises again are actually moving down the last few months. they're not going to travel tremendously, but they will flatten out. and our incomes are rising as the economy grows. and we've all done this before. we just tend to forget about it and it's like stuff in your child when you start to tell us the worst thing in the world while you subject show before. but the moment you stop your time is the worst thing in the world in arch like really bad. this is very difficult for us now. i admit that that is very, very difficult. but we've been here before, and all we have to realize is that these things will solve themselves with housing and private. what drives it is it just takes a while to provide necessary housing. takes a while to match the supply to the demand of housing because of the time it takes to build the house. thank you so much for your time today. can as well air b and b has played an important role in the travel industry and allows for the growth of a sharing economy. the so called air

b and b effect is to some extent responsible for the rising cost of rent. now the air b and the effect refers to the general education process in that is slowly increases the value of an area to the detriment of the indigenous residence. many of whom are pushed out due to financial constraints over tourism facilitated by platforms such as air b and b, negatively impacts house prices and communities. it encourages landlords to move out their properties out of long term rentals and for sale markets and into the short term rental markets. a study found that a one percent increase in air b and b list. these lead to a point 018 percent increase in rent, and a point 026 percent increase in house prices that we're now looking at a future where home ownership might become a privilege rather than the norm. and this could have profound implications for wealth distribution, social nobility,

and even the overall stability of communities. i'm christy. i thanks for watching and we'll see you right back here next time on the cost of everything. the

syria and you'll just view, they would know decisions of the un security council, the united states released this teen and from the bottle itself. and when rest of began to protect its people in done but why is the same not allowed for other countries, a lot of the goals out in washington and for that type of credit who double started on policy during closing for us copeland out of the world news festival chief all v i a speak to all team stating that he has a un mandate to look into any further attendance on those. i propose a new fee of power on his statement comes off to amazing love inputs in, in the southern russian associate of subject that happened. now my reaction would be very different because now i have a monday.