Jason is in Salt Lake City, Utah, hosting The Collective Mastermind gathering with Ken McElroy and George Gammon. He gives us a short outlook on millennial and unemployment myths versus the housing market and its current shortage and why it is really good for income property investors!
Then Jason welcomes Tobias Peter of American Enterprise Institute back to the show! Tobias and Jason discuss the challenges faced by the housing market due to low interest rates and the lack of supply of homes on the market. They argue that the market is in an unhealthy state due to the low supply and high demand, with buyers and sellers struggling to meet their needs due to a lack of inventory. Tobias suggests that the current supply-demand relationship is unhealthy and buyers should consider breaking back into the market if they want to avoid a market crash. The lack of housing supply is due to government policies like single-family detached zoning and environmental regulations, which have made it harder to build and find land to build. The current housing market has been under-building for 40-50 years. Tobias and Jason agree on the need to relax building standards and allow builders to build cheaper properties to provide affordable housing for low-income families. They also mention the benefits of equity accumulation for wealthy individuals and compare the bond market to the mortgage market, as higher interest rates make existing mortgages more valuable.
#HousingMarketInsights #EconomicOutlook
Key Takeaways:
Jason’s editorial
0:00 Welcome to Salt Lake City, Utah 0:39 Busting the Millennial myth 2:08 Pure optimism from a home builder; not much competition from the resale market 3:02 Myth about the unemployment effect on housing supply 5:17 Unemployment insurance and mortgages
Tobias Peter interview
7:19 Welcome Tobias Peter of the American Enterprise Institute 8:00 A generally bullish outlook on the economy as YOY Home Price Appreciation (HPA) accelerates 10:27 The housing Supply-Demand Relationship and issues that affect the market 18:38 Policies that seek to do away with foreclosures and institutionalize forbearance 20:04 Fannie Mae and Freddie Mac loans 22:07 Year On Year HPA by Metro- 60 Largest: Linear vs. Cyclical Markets 23:55 Evidence of permanent mortgage rate buydowns by the largest builders 26:58 Modern Finance Theory (MFT) 30:34 Allow builders to build 36:14 California’s homeless problem 39:54 The future is inflationary- a bullish view on the economy
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