Millennials vs. The Housing Crisis | 1-Minute Market Update w/ Martin Perdomo

Brace yourself for a deep dive into the U.S. housing crisis! Is homeownership truly slipping out of reach for millennials, or can they find a way to navigate soaring prices and high-interest rates to secure their dream homes? We break down the numbers, trends, and political implications of the current housing market, revealing how median prices have skyrocketed and what it means for saving up that elusive down payment. With mortgage applications and Google searches for homes dwindling, it's clearer than ever that the landscape is changing—and fast.

In this episode, we explore the profound impact of high-interest rates and the arrival of 6 to 10 million new immigrants on housing demand and supply. Developers are scaling back, exacerbating the shortage and driving prices even higher. But don't lose hope just yet! We're calling on millennials and new homeowners to seize market opportunities now. Tune in for actionable insights and a thorough analysis of how these factors are reshaping real estate and what it means for the financial future of the millennial generation. This is a must-listen for anyone feeling the weight of the housing crisis and looking for strategic ways to make homeownership a reality.

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Transcript

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Speaker 1 0:32

Since Biden's presidency started , housing costs have skyrocketed , but there may be a way for him to help millennial homeowners and win the upcoming elections . Today is June 7 , 2024 , and here's your weekly real estate market update . Less people are submitting buy-now applications this year . Mortgage purchase applications are down 4% in a week and a whopping 13% compared to last year . Looks like swiping right on . Your dream home is on hold for many . Google searches for homes for sale are flat compared to last month , but way down 18% from a year ago . Looks like the FOMO fear of missing out on houses has fizzled out .

Speaker 1 1:19

Buying a house is getting more expensive . The median home price just hit an all-time high of $392,200 . This means saving for a down payment is going to be a major challenge for most adults . The median asking price for a home is a whopping $417,274 . Looks like many millennials will be staying with roommates for a while longer . Imagine paying rent that costs $2,836 every month . That's what the median mortgage payment is , at a 7.03% interest rate , which is a current rate average 30-year rate .

Speaker 1 1:59

More houses are hitting the market with new listings , up 6.9% compared to last year . Oh , hold on . This is actually the slowest increase in listings over four months . Hey , that tells us something . There's a cue More houses are on the market to choose from . Inventory is up 15.8% compared to last year . The average home is only on the market for 32 days before it actually sells . So if you see a place you love , be prepared to move on it and act decisively .

Speaker 1 2:31

And here's a brief rundown of what's currently happening in the US housing market . Housing prices have been on the rise since Biden took office , especially in swing states , and it's hitting millennials right in the wallet . But it's not just about the money . It's about shaping our political views . With the dream of owning a home slipping further away , we're paying close attention to what politicians are saying and doing about the housing crisis . We want solutions , not just promises , because our ability to afford a home isn't just about our bank account . It's about our future stability . The housing crisis is more than just a financial hurdle . It's a pressing concern shaping political landscapes . Millennials are closely monitoring how politicians address this issue , as their ability to attain homeownerships directly impacts their financial stability and future prospects . As the housing market continues to pose challenges , policymakers must recognize the urgency of addressing housing affordability , particularly in swing states , to secure the support of millennial borders and foster economic stability for future generations .

Speaker 1 3:47

Now , guys , here is the challenge . My message to millennials and new homeowners grab a house while you can . My personal belief is that housing is going to continue to go up despite the fact that we interest rates are high . Here's my logic with that . Now there's some data that supports that . We've had between six to 10 million new immigrants . So I've been reporting on 4 million new immigrants . Now the new data saying six to 10 million new immigrants that came into our country . And I'm going to make a suggestion to you . I want you to be thoughtfully , consider what I'm about to say Six to 10 million new immigrants . Okay , interest rates are high .

Speaker 1 4:26

Guys like me , developers have slowed down on developing new projects or doing new projects . Why ? Because the cost of money is higher . That means we've stopped bringing in new product into the market that will have an effect in a few years . Now we have this influx of people that have to find housing . So what happens , guys , anytime that there's a high demand for something ? What happens to prices ? Prices go up .

Speaker 1 4:51

Now we're talking about adding an additional six to 10 million people . Some reports say that we were short already . We had a shortage of housing three to four million shortage in housing and now we have six to 10 million no people coming into our country that need housing . What do you think that's going to do ? To rent ? That's going to increase demand and then , when demand goes up , prices go up . What do you think that's going to do to housing prices ? It's going to also increase housing prices because all these people need a place to live , right ? When you look at some data in some countries and I'm not going to get into that in this podcast , but countries that have a lot of migration you see that they have this issue with housing costs being absolutely out of control .

Speaker 1 5:36

So my suggestion is if you can comfortably find a place to live and you can make it work , and buy a home right ? Just statistically speaking , just math , guys , it's a simple math . If you add six to 10 million new people , those six to 10 million new people need a place to live and therefore those six to 10 people are going to run up the prices , right , they're going to run up the prices of what . They're going to run up the prices of housing . So that's my thought on it . If you can buy a house , buy it , hold on to it and then refi when the rates come down .

Speaker 1 6:09

I don't own a mortgage company . I'm not a proponent of this , is not me sponsoring any mortgage companies or anything like that . It's just my logic , my own thoughtful opinion . I believe housing will continue to go up just because demand will go up . It's just simple economics when demand goes up , prices go up . When demand goes down , prices go down . We expected pricing to come down because rates went up , but demand stood steady because inventory was low . That's my two cents on it and this has been your weekly real estate market update . I'll see you guys next week , peace .