future integration gets the in the u energy market. so basically brussels in ki evarado sailboat together in the middle of the ocean with no landed sight and considering setting fire to the sale. that's what this idea. there's still a breath of stopping in ports, impression gas, trends of the 3 year grade to the you really would be a 5 year agreement expires at the end of this year. we're talking about a sweet deal that puts a good $1.00 to $1.00 and a half $1000000000.00 a to keeps pockets on an annual basis. not only that, but it was that you pre gets rushing gas itself from the supply that it transits into the you and then reverses that. yeah, you heard that, right? you can get gas from russia. well, going around demanding that everyone else stop by rushing gas, one washington state tank, the carnegie endowment for international peace said that if you couldn't cut the you off from wash and gas bench. yeah. would then have to quote by gas from aust. yeah. which is a country that's an intersection of various pipelines from

a bunch of different places. pay for its trends that true slovak yeah. and then organize its delivery from the western border to the center of ukraine, where the consumption is concentrated and all this added cost of $30.00 to $40.00 more for 1000 cubic meters of gas. the does now, just by reversing back the flow of the rushing gas it sends into your memo over the u. officials are doing their usual routine of trying to repress ukraine by making more demands of it. citizens and industry, thanks to the political agreement to chief today and the council member states are encouraged to continue reducing their gas consumption until 31st march 2025. by at least 15 percent compared with their average gas consumption in the period from 1st of april. 2017 to 31st march 2022. so you might be wondering where is that figure come from this belt tightening of exactly 50 percent that the you and asking for? well, just so happens that the,

you at 2023 was still importing 16 percent of its gas from russia. now, well, that's down from the 45 percent that russian gas comprised of its pipeline imports before the conflict in ukraine. it still might come as a shock to people who are actually listening to brussels brag about how they were sticking it to russian president binder put in by depriving him of energy. right. obvious that they were still importing any russian pipeline gas. but all now add to that, the n g, a global witnessed reporting last year, that the really just pivoted from importing pipeline rushing gas to incorporate russian liquefied natural gas with russian elegy imports into the you jumping 40 percent since the onset of the complex, even more than that, each of the previous 2 years. and ukraine, well, sounds like is calling the shots. we say that if our partners do not have time to

reformat their supply sources and have to turn to russia next year as well, it will be their decision. we will provide such a service, however, it should be made clear that 2027 is a deadline for them and they have made appropriate commitments to completely stop using russian gas. yeah, maybe brussels to just do whatever you craze. all that to do because that's worked out super well so far. or maybe they should just keep the newest recruit to their cloud to distracted with things like the smoking ears routine. they're slight of hand. maybe a few twisty balloon animal was all meeting their own needs on the down low. all that is all some of the stories of what keeping an eye on today from. oh ok. so you don't. com is the pace to you. taking over at the top, sean a coupon skate as me and i'll see the

buying a house. used to be a ride, a passage for any adult. you go to college, you get a job, you get a house and you settled down. and they 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 . and i'm 50 i and 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 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 costs 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. 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 $2836.00 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. 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 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. 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, rips have been rising in the us and in general around the world. and 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 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 up the. the demand is out stripping the supply, which is driving of 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. busy the rips on average in the us have been trending 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. 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 boat 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 re invest, that you do that mastic late. 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 just 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're going to 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, and,

or repurchase. and there are some reasons for this of 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 rent a 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. the 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. was a major issue in pretty junior. why given the conditional insurance move up, i need to push the code and because of that move,

sure. sick leave a clue, cause you will get to the city because of the consortia, the cases they chose coast mcadams, that i chose for the name just you pretty much the people on the plaza road. lemme you know, a little bit early as far as the most important thing to visit with somebody some of the was congested is the, is this wasn't able to sell any successful wants to build. some of the chairs are still good. i still don't know if i'm forward to for, for most of which might get her in the take a fresh look around his life. kaleidoscopic isn't just a shifted reality distortion by tell us tired vision with no real opinions.

fixtures designed to simplify will confuse who really wants a better wills, and is it just as a chosen few fractured images presented as 1st? can you see through their illusion going underground? can the fall housing prices are had a higher rent is also getting more expensive sense? depends. i make 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 runs in the us are now at a $1982.00 on average representing a 3.38 percent increase compared to the same time last year. rent has been

increasing since 2020, from a variety of factors, including inflation, 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 brands 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. 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 while 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 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 the individuals way the decision to rent versus buying a home. well, yeah,

i took the question the other way when you 1st says there, so what should be on that list? they should be asking themselves names along. i'll go from both the terms of chew side, and then i'll go over to them to the, to the finance side, the financial assets side for the consumption side. you need to ask yourself, are you happy with your location there? 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. busy 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 and upgrades 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 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, 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 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. ready is a bifurcation and the age groups, for example, young people are more interested in renting today and then perhaps ever before. and

as you become a little bit more seasons like myself, and we tend to think, well home ownership i've, i've kind of the 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 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 to us out there, remember, you can either own and build a way you could rent and not really invest those monies that you would otherwise put in a home ownership. or you could rent 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 and in the us today. and i believe around most of the world, they're a little bit less connected to fill that. busy the, the old a 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, there 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 an individual, and therefore home ownership was very popular because it did go up and down on average. so it was seen 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 rates 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 wrench or an issue by that. where by that i me bought in 50 percent of households

or. ready thing as opposed to holding that number might go down into 60, on a high fifty's. it's not good dramatically change in the next day or so 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 of the parts of your to my understanding is this concept of short term rent a where you're not having these year long the lease. ringback 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 baby 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 big work or 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 on a home, 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 the 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 arbitrarily, i think, 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 at housing right now,

but we've been there before. and then there's been more formal periods, so they all correspond with, with your hike about at the peak of the 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 what so really is, so are we at a time that is unique and never happened before? where so on affordable a very difficult to to build up that down payment at all the money is necessary. obviously the answer that is no waiting periods just as tough as this where your income relative to cost or. ready or of why we've been there before, but that's because we benefitiq some housing sites before. so the one i'm thinking of is my generation coming out where unemployment was double digit and interest rates were 17 percent. and the down payment was always very difficult to come up with because incomes were lower relative to price. it was all sorts of problems that was all today we're again,

we're at the peak of the cycle. but if you compare this to just like 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 periods of time. so i guess my answer is qualifying. 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. that's 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 things that definitely were 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 a horrible 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, the 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 by age if you will. so we used to watch the com such as of the odd couple, the golden girls, those came from real life situations. house. 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 od roommate,

situations alternative forms of housing will also become very popular by that. i mean mobile homes primarily ma to our 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. 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 stopping your child when you start to tell us the worst thing in the world while you start to trouble hold 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 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 a 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 be a 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 are 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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