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, money can't afford to purchase a home and they end up renting home ownership has become an elusive goal to achieve . i'm crispy and you're watching the cost of everything work today. we're going to be exploring the rising cost of rent and its implications on home ownership drains . the, the costs of 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, you're 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 concrete disparities, the echo through the generations. this current trend could potentially create a divide and wealth accumulation amongst different demographics to unfortunately for buyers,

home prices have continued to rise in 2023 with the median existing home prize at 413000 dollars, which is a year over year increase of 3.4 percent. 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 on a $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 their 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 gladly 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 of what's been happening is a family formation. as 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 is not just the birthright, 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 because relatively speaking on affordable with respect to income board. the board demand in a given area is driving up the. 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 read. so you just flip a switch and create the supply. that's necessary. interesting way the risks on average in the us, i've 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, but 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 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 remember that you do that i'm asked. this is a commitment. this is an investment to you if you end up renting and not reimburse thing, that is the 3rd choice, which is by far the work, most of 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, 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 hand or repurchase. 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 into the product. and 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 was a major issue with sadly why given the attendance condition insurance will apply to appreciate the code and because of the issue

simply with blue cross, you will get to the city because of the consortia, the cases i chose coastal academy whenever you're ready to spell the name you're shipping, what's going on down the road? literally gene you level you want that? yes, that's the most important thing to the the somebody. some of the risk adjusted is the, this is sort of what you're selling. you're successful. who wants to build some of the key treasures to go at actual need on what i'm looking for. so most of which might get rain. so when the, the, the

the

fall housing prices are, had a higher rent is also getting more expensive. since the pen demik rent has increased 29.4 percent overall. for a single family homes, the increases had 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 in 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 pen demik 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. the renters are also increasingly looking for a studio and one bedroom apartments driving of demand for available housing. prospective home buyers are also remaining renter's for longer, as they face high demand and low inventory of existing homes and rising mortgage rates. generally, households should be spending no more than 30 percent of their gross income on rent . that means if a household or as the u. s. median income of $70784.00 annually or $5899.00 per month. the goal would be to spend no more than $1770.00 per month on rent. and well,

only your own home is consider the american dream. romania actually tops the list with 96 percent of household owning their own home. this results from the mix of tradition opportunities and housing affordability followed by china and vietnam. 7 a 90 percent and russia at 87 percent. the meanwhile, countries that have 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 do individuals way the decision to rent versus buying a home? well, 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 along. i'll go from both to consumption side

and then i'll go over to the, to the, to the finance side, the financial assets side. on 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 high. 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're a better job offer, right? so, but on the consumption side, again, you're just given uh, making your own meal. we all like around cookie. so the red thing side from a consumption standpoint is sometimes a little bit preferred. uh because people are, is in love with the amenities and then they like to trade where they could make, oh, my gosh, i can pursue a career a little bit easier. so what you tend to see is a bifurcation in the age groups. for example, young upper level people are more interested in renting today, then perhaps ever before. and as you become a little bit more seasons like myself than we tend to think, well home ownership i'm, i'm kind of at a peak of my career, i'm getting there. i don't need to move around the country. ready i'm happy where i

am, my family growing 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 build equity, you could read and not really invest those monies that you would otherwise put it in the home ownership. or you could read and re invest those movies that you would otherwise put into 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, you 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 amount 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 in, in the us today. and i believe around most of the, well, there are little bit less to connect it to feel that recessive, the, the whole, the whole. what's the reasons for this to is the. ringback they investment opportunities for those that are coming along at this point in time to just entering their professional careers. they're more investment opportunities, spots all sorts of all sorts of financial alternatives that they could invest in and say, that is a 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 the 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 do we get here? little bit of a 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 or h rates or are we see our biggest generational pretty so well. busy the, 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 say 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. busy to become a wrench or an issue by that we're by that i'm a born and 50 percent of households are renting, as opposed to holding. that number might go down into 60, on the high fifty's is not good, dramatically change in the next day. ringback either generational shifts and

preferences for long term renting over home ownership. absolutely. i think some of the generational shows that something that we're not talking about because you mentioned the long term, right, to something that we're beginning to say in the us and in parts of your to my understanding is this concept of short term ready where you're not having these year long the lease. ringback and the landlord is, is they're doing 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 are now very mobile and it doesn't really matter. they can work from home and kind of a baby as a passing fad. but at this point in time, there's a, there appears to be appears and it does need to be a number of these dig 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 do i want to take all home ownership or long term lease? does that stops me from doing it? it doesn't matter if i'm warranty in miami and in the winter time with him harbor in the summer, i work anywhere. so i think that is becoming an alternative. is that because we've only had really 2 until this point in time where it was either you oh, are you long term rent it short term right. busy orbit funding, i think, and are there some unique challenges faced by younger individuals in accumulating the necessary funds for down payment? i think that the 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 at 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 what so really is. so are we at a time that is unique and never happened before where so on affordable, it's very difficult to, to build up that down payment and all the bodies that. ringback wirelessly, the answer that is no waiting 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 a piece of housings like 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. ringback 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 it that difficult to,

to get into home ownership. it was one of the easier theories in time. so i guess my answer is qualifying. 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 at the pizza, the housing cycles, i back in the early eighty's, the late 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. it definitely we're in a very unaffordable. 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 prices shoot up. they'll be that means that that amanda's out strictly

supply so you decide to build warning units. and so how quick and we. busy the units that is an issue. so then you get this very, you get this period about affordable housing, both on the right side of the homeowners. ready 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's anality 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 goals. ready and girls, those came from real life situ. busy and that's how people have historically dealt with on affordable housing. curious, a housing crunch on both rent and home ownership side. so you see multi generational living. these are roommate situations alternative forms of housing will also become very popular by that. i mean mobile homes primarily must your 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 and the prices are flattening outraged. prices 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 stopping your child when you start to tell us the worst thing in the world while you subject child performed at 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 primarily what drives that 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 the bill passed. thank you so much for your time today. can well air b and b has played an important role in the travel industry and allows for the growth of assuring 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 gentrification 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. 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 more expensive. and i'm going to plan with you whatever you do. do not watch my new show. seriously. why watch something that's so different. several opinions that he won't get anywhere else. welcome to please or do you have the state department c i a weapons, bankers,

multi 1000000000 dollar corporations. choose your fax for you. go ahead. change and whatever you do. don't want marshall state main street because i'm probably going to make you uncomfortable. my show is called stretching time, but again, you probably don't wanna watch it because it might just change dwayne say on march the 22nd 1943. doing the great petri. i'll take the shirts and munch fatality in 118. run down the battle, receiving village of clotting ship of the new wish to be loaded in luxury. is that or yes or no? this one, most of the rooms, 242, you 149 people died including 75 children of age was practically wiped off the face of the la new blue loves of the option. couldn't charlie was,

you know, in june will you put it as follows? oh, shoot. was hard really. i really usually its own you feeling, you know, so the infamous battalion responsible for the actual city included over $100.00 ukrainian national is from west to new. right. because of the applicants. all right, and so i'm see what you guys so far as the new e phone, that's a long list. if you guys pursuing your up with a, with them us casa de classified criminal cases from the central archive of the k, g, b, a better rules shut the light on the atrocity. and on so numerous questions that have remained an onset for many years. watch on oxy and there's no end in sight over how you're going to continue to destroy the earth. is the case for the madness of the people. i tried to go to the gym, but i'm certainly not ready to fight russia. this is also absurd. this is the 3rd

world lunacy re washington, as for so the funder line likes to say, we have the tools while we just start with stability and business deals. what is, let me let me on my have very quick propaganda. you know a price here in new york. i think we don't know the aftermath any time that you're not allowed to ask questions, you should ask all of the questions. some more questions ask the better. the answer is, will be is it 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 the beautiful landscape is over agent conditions and culture. and if we come this far, we know that it's going to be worth the journey. the,

[000:00:00;00] the south africa legs pay won't be, is rarely end came a is this put taurus tax new legal charges, the gates tennessee, full spring, it's genocide. k. it comes as direct costs as ad dropping angel goals. that won't result the crisis. didn't get the addresses that are inefficient. that's available . they cannot supply the required for disease of time paid me the food to the best