the the 5 advocate making st. claire want as well as all to the goal is i would sort of pause on new charges against some of the most is genocide cases. it comes as the right cost says add dropping aid in java will not solve size vary in price. the thing with the addresses that are inefficient, sustainable, supplied the required for the results in turn, pays me the food to the best majorities, all of the nation. and the launch is a rush to do effort to save $21.00. people on board a call the buyers off to the level of the ship and the state.

so give about a red lines. the french president says he's country has put to note it. it is and it's so pull the bind him into the middle of the rates for security. okay, so thanks a lot of the pledge outlines the problem. if occasion was all the latest advice to be sure to check out. so i was calling for the news and that i will be back with a full one down to the out. the buying a house needs to be a rite of passage for any adult. you go to college, you get a job, you get a house and you settled 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 cheese

. 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 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 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 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. 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. now a common rule of thumb is the $2836.00 rule, which says that a home is affordable when your housing expenses,

which includes 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 have unhealthy. they're 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 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. bradley are now can, with the rising run prices, what challenges do individuals and families face in terms of housing affordability? so in recent years, rates have been rising in the us and in general, around the world in what's been happening as a family formation. as this finally hits new stride, if you will. so we have a number of people that are. busy running those households for the very 1st or so family or household formation is not just the birth, right, 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 present of 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. more the board demand and the 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, late the rips on average on the us, have been trading downward 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 part of consumption and investment. so how do you answer this question? depends on the trade off between consumption and investment, trauma 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. ready though the difference is very small, so you have ask yourself, what is it that you want to do? and then you have to make sure if you do rent and re invest that you do that i'm asked equally that this is a commitment. this is an investment to you if you end up renting and not reinvesting, 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, 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 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 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. i live to chicago,

etc. thank you so much, ken, but please stick around. 10 johnson, we'll 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 news, the

in the 1870s, the colonial expansion of the british empire and the nile valley increased. the british decided to get complete control over sudan. however, the deeply religious people of that country did not want to obey 4 laws. the unceremonious intervention of british officials led peoples discontent. it's spokesmen was the theologians mohammed off thought. the frog blamed himself demonte . the design began to gather an army against the invaders. by 1884, most of the sudanese cities were in the hands of the modern great britain decided to intervene directly. but the troops of ahmad gave the invaders a drubbing. in $1885.00 the rebels, the capital car to the feet of britain was totaled only by the very end of the 19th

century. after the death of ahmad, the british were able to regain their control of sudan. unable to defeat the living body, the british took revenge on the dead one. these remains were drawn out of the mazda liam, and thrown away into the nile. mods had was brought to england as a trophy. however, the victory of the modest revolt became the 1st successful action of the peoples of africa against the colonial oppression. and remained at dark stain on the reputation of the british empire. the fall housing sizes are had a higher rent is also getting more expensive. since 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 rents in the suburban areas more than it lowered them in urban areas. yielding a net increase in rents. renters are also increasingly looking for 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. 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. * ops the list 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 or less spring and 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 things 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 standard package so to speak. you, you get what you get. so other advantages are hi i, i, personally, this is true of me. i'm horrible working with my hands and when you own a home,

you have to consistently be maintaining at home and you're either pay for it or you're doing it yourself. so you have to ask yourself those. ringback is, 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. busy you, if your renter's, you get to a more easily relocate for that they are a better job offer, right? so, but on the consumption side, again, you're just given uh, making 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 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 see is a bifurcation in the age groups. for example young upper level people are more. busy more interested in renting today and then perhaps ever before. and as you become a little bit more seasons like myself that we tend to think, well home ownership i, i'm kinda at the 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 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 build equity. you could read and not really invest those mines that you would otherwise put it in a 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 already 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 in the test 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 negative to feel that. busy the, the older home, what are the reasons for this to is the, the, the investment opportunities for those that are coming along at this point in time . they're just entering their professional careers, their more investment opportunities, of all sorts of all sorts of financial alternatives that they can invest in and say

that it's safe 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 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 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 information to the right thing. but i don't think we're going to become a wrench or an issue by that we're, by that i mean, more than 50 percent of households or reading as opposed to holding that number might go down into 60 or the high fifty's. it's not going to dramatically change in the next step. 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. so something that we're beginning to see in the us and in parts of europe to my understanding is this concept of short term renting where you're not having these year long leases. 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, it may be 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 the home 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 it 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. ringback on a 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 pilot of states. so where we are in the economic cycle, we are clearly not affordable period 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? we're so affordable. it's very difficult to, to build up that down payment and all the bodies necessary. obviously the answer that is no waiting period. it's just as tough as this where your income relative to cost. ready or uh wow, we've been there before, but that's because we built 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 say 2012, when we're at the bottom, the housing cycle in the us. that was that difficult to get into home ownership. it was one of the easier theories in time. so i guess my answer is qualify, it just depends on what periods of time you're you're comparing this to it's no more difficult today to get into a home ownership. busy as a piece of the housing cycles, i back in the early eighty's, the late eighty's. and today those were 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 of 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 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 get 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 buy sees analogy here to, well, i'm a buy age if you will. so we used to watch the com such as of the couple the golden girls,

those came from real life situation. 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. 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 price isn't, little prices are flattening out. ridge 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 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. it arts 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 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 effect refers to the gentrification 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 is lead to a point 018 percent increase in rents. and a point 026 percent increase in house prices. or 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 mobility, 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.

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a way of flushing other countries on the back sort of an effect. our record shows that we're not really that much of democracy, that we have about no script interfering in other countries when they produce democratic outcomes. we don't like the a j. k is off the gaining independence and from the form of the ivory coast remained under the strong influence of its former metropolitan pro french president . felix, who said one year ruled the country for 33 years, ensuring the interest to from the dead. the government dean isn't in the new house, including his foster. larry share goods was done. those who saw him a little more appropriate after the death of, of a one year, a new lead to long come back. bull came to power reset and i'm ready to double open,

for example. yeah, curious to know if we're picking up from the standpoint isn't good enough for tiffany to one is the one the bronze to meet, usually deem good luck. boeing, enemy, a deep political crisis ensued. the walk a, the country 2nd largest city, turned into a theater of law looking to see from 130 to the other 2 on the road as of no mortgage. how did the dramatic events unfold? and how is block a recovering from? he is a bloody conflict. watch on see the catholics was dealing with peter the reasoning of the clean benefit of 60 much patients. the criteria was do it as soon as.