measures targeting a bronze new day industry economics restrictions on trade investments and financial transactions, as well as on arms embargo, limiting the sale, supply and transfer of weapons and related materials to and from iran. we spoke with the fly, these idea of political communication with the professor at the university of to ron. and he says a washington is lawful, the trying to punish yvonne and its people is not justified to. busy sign shows on the people who need it, it says they have a disease and it requires they have medicine that does not prove this thing. you know, one is producing about 95 percent of the medicine that the country needs in 1090. but this particular medicine has to come from abroad. you don't, has the money to buy. but because of a banking sanctions, you don't cannot pay it. the company that's produced is made this and other than

comes, he hasn't money, but they can a task for the money add to the companies that produce them in the sense and uh, so the comedies of the patients have sold the united states government for and you know people die from this disease. so the united states government for basic, the kidding, the children and then relatives. and they are punishing either in the end or not. listening to a medication dictates as punishing you'd audience. but having a resolution, i guess the use so forth that target zimbabwe has lashed out that the united states of a recent sanctions imposed against the sob and african nations president and all of a senior officials the about what size of the restrictions are completely on justified and bob boy takes great exception to gratuitous slander and defamatory remarks by officials of the bite and administration against the sanctioned zimbabwe leadership and its nationals. what adds to the outrage is that these bold and

damaging accusations are not backed by any type of evidence. we condemn these malicious statements as completely uncalled for as defamatory, provocative and as a continuation of wanton hostilities against involve way by the us government. now, washington has a key is the, is in baldwin government of the box sliding on democratic processors as well as human rights abuses, interruption. it froze assets and entities pointing to the countries, officials in the united states, the new restrictions add to a more extensive list of functions that have been imposed over the past 2 decades of business. how the u. s. embassy in zimbabwe commented on the new nexus, the targeting of civil society and severe restrictions on political activity have stifled fundamental freedoms while key actors, including government leaders of siphoned off government resources for

personal gains that we spoke with international relations, the analysts cuz i'm with tc who says of the washington puts paso in states with false accusations, using the mazda protects for sanctions of the i q, which is from the u. s. i just an extension of they are usually between each. if the ones to sanction you defy something to say about you and then they use it as a justification of their actions. they never provided evidence. they have never tried in the court of law in a new day of never couldn't beaches in your lisp, waiting includes a slope in fix that people could see was exposed this week when they removed it. so people, it's companies that way of deception. this is anything, but we look for any of the condition of the give those people. it does not show them anything. by the way, they moved the shows that they just do things be suddenly these no mentors it's, it's just co te escalation. if we check to see about with. busy the typical gods

showing the terms of. busy the kids or any other kinds of crime that much lower the united states is involved because nobody visit any other country is police if there was short for the should to be. and so the key is not that by this at all. it is human advised that this is cindy as a policeman of the well, the affiliates, and by way of being at the session. so it is quite ridiculous as well. but uh, they might be doing it as a way of getting to our i like, i like russia its either, it might be the same way. so i was into the we as the move back we'll decide is we go from depression. wow. i like it could be they applied while i back the all the best time. how see you again. a couple of 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 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 save 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 costs 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 to unfortunately for buyers, home prices have continued to rise in 2023 with the median existing home price 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. the rising mortgage interest rates haven't 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 lost $30000.00 in purchasing power since 2023 due to inflation. millennials are the largest generation in the us and also the most unique in 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. whether they 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. busy in the us and in general, around the world in 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 are 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 have a, a mis alignment, a present 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 rants but come 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, in rent. so you just flip a switch and create the supply that's necessary. interesting, late the rips on average in the us. i've been trading 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 of 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 aside, we still have to other aspects of housing 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 in 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 risk and wait and reinvest that you do that my mastic way. this is a commitment, this is an investment to you. if you end up renting and not reimbursing, that is the 3rd choice, which is by far the worst of the 3 choices and it 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 get out of a lease and move from miami,

florida to new york city. to take advantage of a job offer that it is to sell your home and miami and then move to to new york and either rent or, and, or repurchase. and there's some reasons for there's some tax reasons why you want to repurchase. so generally speaking in the us, what we say is want you to 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 live 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

. the well, housing prices are, had a higher rent is also getting more expensive. since depends. i'm a rent has increased 29.4 percent overall for a single family homes that 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 the 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, striving 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. a general a household is should be spending no more than 30 percent of their gross income on rent. that means as 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

$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 have the lowest homeownership rates include switzerland at 42.2 percent. germany at 49 point one percent, and austria at 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 weigh the decision to rent versus buying a home?

wow. yeah, i took the question the other way when the 1st there. so what should be on that list? they should be asking themselves names along. i'll go from both of consumption side and then i'll go over to the, 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 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 paying for it or you're doing it yourself. so you have to ask yourself those. ringback is are you re. busy 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 bigger a better job offer, right? so, but on the consumption side, again, if you're just giving a break in your own legal, 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,

that we tend to think, well, home ownership i'm, i'm kind of a peak of my career, i'm getting there. i don't need to move around the country. 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 the build equity, you could rent and not really invest those monies that you would otherwise put into 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 in 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 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 is the. ringback they investment opportunities for those that are coming along at this point in time. they're just entering their professional careers. they're more investment opportunities, thoughts, thoughts, all sorts of all sorts of financial alternatives that they can invest in and say that it's 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 our age groups or are we see our biggest generational pretty so 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 say in the us a little bit more inclination to, you might say a little bit more information to the right thing. but i don't think we're. busy to become a richer nation by that where by that i mean born and 50 percent of households are

reading as opposed. ready holding that number might go down into 60 or in a high fifty's is not going to 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 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 rent to where you're not having these year long. the lease. ready 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 big 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 is that stopped 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 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 a, at the peak of a housing cycle, you're going to get a lot of an affordable house which are at the bottom of the 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 affordable, it's very difficult to, to build up that down payment and all the bodies necessary. obviously the answer that is now we see periods just as tough as this, where your income relative to cost were uh wow. we've been there before with us because we bought a piece of housing cycle before. so the, what i'm thinking of is my generation coming out where unemployment was double digit and interest rates are 17. ready and the down payment was always very difficult. ringback 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 like 2012, when we're at the bottom, the housing cycle, the us, that was it, that difficult to get into a home ownership, it was one of the easier periods of 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 as a 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 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 prices shoot up. they'll be that means that the demand is out stripping 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 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's analogy 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 on affordable 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 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 solved it every time before. we will simply start to double up, if you will, the 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 out. ridge prices, again are actually moving down the last few months. they're not going to topple 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 tone when you start to tell us the worst thing in the world while you subject to behold 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 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 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 b of fact refers to the general education process in that it's 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

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