The Expert Podcast

So how many more homes are needed in the us to cover the current market Well here's a good example right here. 3 million people in the us. Are renting even though they're making 150,000. dollars a year. This is because

home prices have gone up dramatically. In the last few years where even if you make 150 grand. It might be tough to be able to buy a house especially with the interest rates. And you might think, how could that be true you make 150 grand Well think about it. If a house costs let's say $450,000 That's the median price for a house right now.

In some markets is five to five 50 just to buy anything That's halfway decent. That's going to give you a mortgage payment at the current rate of about $5,000 a month or maybe 5,500 once you figure tax insurance, all the other things that go into owning a home. So for $5,000 a month…

You need to take, you need to, to earn. $8,000 a month to take home 5,000 after taxes. Well $8,000 a month is roughly a hundred grand a year before taxes. So if you make 150 grand…

Two thirds of your income would go to paying for your mortgage for $500,000 house. That's why 3 million people like that. Are still renting because it's tough to be able to afford five grand You could probably rent the place for three. 3,500 where to buy a house might be a lot more money Plus you're going to need to save up. A hundred.

150 grand to come up with a down payment even a 20% down payment. On a $500,000 house is going to be a hundred thousand dollars…

How much are you going to save If you make one 50 even if you save 20% of your income that's 30 grand a year. That's going to take you four years. To save up enough money to buy a house. This is why new. home construction is, is drastically needed.

There's not enough new homes being built. And that demand is still going to be there. It's not going away even though home prices have gone up and, and purchase volumes of real estate for single family homes is slower. Right There's less people buying houses than there were two or three years ago. It's not going to make the market crash because there's still all these people 3 million people.

Are still renting, making 150 grand. That's still out there And there's other…people that want to buy houses Besides these people that are…making less money, maybe people who are in a house but they want to upgrade. There's still a demand for homes that's out there regardless of what the rates and prices are. And you know anecdotally one of the stories that this wall street journal article talks about is, you know here's a an accountant. And,

he's trying to save her down payment. And it's not what I envisioned to be in a two bedroom apartment with. his son. another one is a 30 year old who owns a flooring business. And he is trying to, buy a house but he can't really afford it.

Higher earning Americans are more likely to rent than in the past. This is a very important thing to be aware of If you're a builder if you're a contractor. There is still that demand out there. It just we're in a weird no man's land right now with prices, interest rates, and even availability of builders to build enough homes with. with staffing or.

contract employees. With this number of people that are out there. Trying to, or pending pent up demand trying to buy a house. It's not going to be any time soon will there'll be enough homes. To fulfill the demand or fulfill that need.

For single family ownership primary rental primary residence. Type homes.