The Housing Affordability Crisis Just Got Worse

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The U.S housing affordability crisis explained. Who has it worse, a family buying in 1985 or a first home buyer today?

TIMESTAMPS
INTRO 0:00
COST OF OWNERSHIP 1:36
INCOME RATIO 5:33
ASSISTANCE 6:54
SUPPLY 8:03
ALTERNATIVES 10:07
WHO HAD IT WORSE? 12:31

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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice from Hamish Hodder.
Hamish Hodder is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
Hamish Hodder is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

[HamishHodder]

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[tHebUm]

One key thing you missed: many households in the 80's were single income while most households today are dual income. So the situation is more grossly skewed than even the data shows. Then those same old people ask why young people today aren't having kids when our effective incomes with two people working full time are less than one person working + one staying at home back in the day.

[viewerone]

We’ll all be millionaires and it will mean nothing

[TylerRein]

You need to take into account the inflated cost of literally everything, not just costs related to home ownership.

[AM-qkox]

* Laughs in Melbourne house prices *

$435, 000 would buy you a shack 4 hours away from the CBD

[KevinEF]

The median family income in the US is NOT 92, 750. it's $74, 580 according to the US Census. That makes every calculation afterwards wrong.

[tHebUm]

Homes should be shelter to live in, not investment vehicles. It's unfixable as long as the people who own property both have far larger political influence and use all that power to entrench a system that doesn't allow new building to keep pace with demand to continuously balloon their investment/home's value.

[R.E.A.L.I.T.Y]

The answers in Vienna & Singapore. STATE builds housing as a right supported by various mechanisms. Result: 90% home ownership in Singapore & 80% of Vienna live in State Housing.

[DRENS]

Paying 1 quarter of 400k just to get into the house is ridiculous.

[LukeyPoo]

Thank you for codifying what so many people know in an intuitive sense but can’t really articulate! You’re the man Hamish!!!

[EatRawGarlic]

Considering that:

A) In the western world, the birth rate of the native population has fallen below the replacement rate.

B) The population growth in the west is largely due to immigration and only to a lesser extent, aging of the population.

C) Based on Danish statistics, the net contribution of the majority of 3rd world immigrants on the GDP of their host country is a negative one (I don't expect it to be much different elsewhere).

D) Immigrants require housing as well, and therefore essentially compete for the same space.

E) The populations of the host nations were largely ignored during this age of mass immigration, they never asked for it.

The contours of a solution therefore seem clear to me, and from what I've seen from the UK recently, to many there as well.

However, YouTube community guidelines usually prevent much of a discussion beyond this point.

[adamjonmonroe]

As long it's profitable to own land as a store of value, wages will tend toward subsistence.

[HectorSnipes]

No financial institution should be allowed to own 40% or more of the single family homes. This recession is paving a way for a monopoly on homes to further rid of the middle class. It would be wise for most Americans to not sell their homes if they're able to.I want to buy houses cheap in 2024 and maybe invest in stocks. When's the best time to buy stocks? Some say they make a lot, others warn the market is risky. Advice?

[hrmprofessor]

A key factor of high interest rates with low principles relative to income is that a disciplined buyer could easily get ahead of their mortgage with prepayments, saving on those interest costs. Whereas a person with a much higher principle to income is going to have a much harder time prepaying their mortgage. That is, slapping a bonus against the house yielded far more benefit for buyers in the 80s than buyers in the 2020s. I would much prefer a lower home price with high interest for this reason.

[jimjones]

Life is so full of crookedness its no wonder ive tried to end my life twice already. I don't think people in general have any idea what is coming. Economically we are light years past doomed. But to hear my family they believe all is sunshine and rainbows. I don't comprehend their logic.

[NFSCfan]

This is happening virtually everywhere across the UN nation states by the way. Too often people think it’s poor local policy choice, but when a problem is endemic, you have to look for a common cause. I wonder if the UN has an agenda to reduce asset holdings of regular folk, and to reduce their fertility rates, and to reduce their consumption and carbon emissions…

[cultleader]

You forgot a massive factor in the 80s they didn't have all the mass of taxes that we do now like luxury tax 7.35% gas tax, much higher property taxes, rain water tax in some states, many other . With a decaying $ with wages that didnt keep up 😂😂😂😂

[natheayn]

One big aspect that you didn't really cover is the fact that THE STICKER PRICE MATTERS.

You are on the hook for X amount of dollars once you take that loan. It is a highly leveraged purchase!

Depending on where you live mortgages may be recourse loans, meaning that if you purchase a home for $1 million at 5% down (generally the minimum in canada) thats still 50k (CAD) down. If it drops by 15% then you are 100k in debt so you can't sell and move without coughing up 100k or going BK. Just 15% completely robs you of your freedom to move for any reason and potentially costs you your entire life's savings. 15% is not a massive drop.

Lower prices are WAY less risky and make market movements WAY less impactful and potentially life-ruining.

For example if the price was 500k instead and it drops 15% your down payment was only 25k and a 15% drop only puts you 50k in the hole, which is actually manageable for most people with a few years of frugal living.

[KwincksIT]

wow so the US is cheap as compared to Australia. only 41 yrs to save for a deposit in Sydney on median income and the ratio is 13x the family income. that why were the 2nd most unaffordable in the world.. yay.

[S.T.R.Y.K.E.R.]

1:59 the fact that my parents bought a house for twice the square footage, half the price, and magnitude greater location just 20 years ago is so absurd.