By Mike Bodeen · 2 September 2024
I hope this Labor Day holiday edition of our Snapshot finds each of you enjoying the time with close friends and family – holidays with loved ones are helpful to remind me of the things in life that really matter.
That is sort of a segue to today’s Snap. Though not our Thanksgiving holiday, I find myself feeling very blessed living in an awesome and free country which allows me to help chart out my kids and grandkids destinies.
I’ve shared with our readers my thoughts / concerns about the American dream of home ownership slipping away, especially from the younger (Gen Y and Z) generations. I’ve been an active advocate / proponent of trying to help renters to transition to home ownership.
My good friend and client Mike recently sent me this revealing NT Times real estate article that has spurred today’s subject, which melds with much of what has filled these pages for well over a year now.
“From Anchorage to Amsterdam, many developed and even emerging economies are confronting a similar problem: Housing supply is failing to meet demand, helping to push home prices to levels that are out of reach even for middle-income families.”
The Times article also stated the following: “First, many economists expect would-be buyers to jump into the housing market from the sidelines as rates fall. That could collide with limited supply to push prices up.” Sound familiar?
And, “From Anchorage to Amsterdam, many developed and even emerging economies are confronting a similar problem: Housing supply is failing to meet demand, helping to push home prices to levels that are out of reach even for middle-income families.”
So, the NY Times article, entitled, “Why Interest Rate cuts won’t fix a Global Housing Affordable Crisis,” spoke first about America’s affordability crisis, stating what we’ve been stating. Interestingly, Phoenix, Arizona, and the U.S. are not alone in this problem. According to this article, it’s global.
Central Banks, including The European Central Bank and the Bank of England are already reducing loan costs, but they pointed out that high labor costs, more expensive materials and regulations will continue to hinder the supply of affordable homes.
Mark Zandi, chief economist at ratings agency Moody’s said, “The U.S. faces a shortage of 3,000,000 homes. “It took a generation for us to get into this mess, it will take time to get out of it.”
On top of all that, add the global wars and hunger crises that have displaced millions of people – like you and me – and it has a way of making every day, a day of Thanksgiving.
Mike Bodeen