If Homes Are Unaffordable, Then Who Is Buying Them?

Summary

The video script discusses the dire state of the housing market, highlighting the affordability crisis in the US and UK, where increasing prices and stagnant wages push home ownership out of reach for many. It delves into historical context, the role of institutional investors, and the potential societal impact of a rental-dominated future. The script also touches on the innovative yet risky financial instruments that have contributed to market volatility and the broader implications of a shift towards non-ownership in various sectors.

Takeaways

• 🏠 The housing market is experiencing an affordability crisis, with many people being priced out of home ownership.
• 📉 House prices have begun to fall in the UK, with a 4.7% drop in a year, indicating a potential market correction.
• 💔 The American dream of owning a home is becoming a fairy tale due to the high costs and stagnant wages.
• 📈 The demand for homes continues to outpace supply, leading to skyrocketing investments for the upper classes and corporate landlords.
• 💹 Despite the potential for a housing market crash, some investors are diversifying into alternative assets like fine art to protect their wealth.
• 📊 Overpopulation, inflation, inequality, and a lack of supply are the main forces driving the current housing crisis.
• 🤔 There is a perplexing situation where housing costs are increasing rapidly, yet affordability is at its worst, raising questions about who is buying these homes.
• 📉 The housing market in the US is also showing signs of stagnation after years of price hikes, suggesting a possible bubble burst.
• 🏦 The mortgage market has been transformed from a necessity to an investment vehicle, contributing to the housing crisis.
• 📈 The creation of mortgage-backed securities by Lewis Ranieri revolutionized banking but also led to increased risk and the 2008 crash.
• 🏢 Institutional investors buying up single-family homes could lead to 40% of the rental market being controlled by these entities by 2030.

Q & A

What is the current state of the housing market according to the script?

The housing market is described as being on its last legs, with increasing numbers of people being priced out of home ownership and facing an affordability crisis in the United States.

Why are house prices falling in the UK and what was the percentage drop mentioned in the script?

House prices in the UK have begun to fall for the first time in years, with a 4.7% drop over the past year, which is the highest level since 2009.

What is the connection between the housing market and the upper classes or corporate landlords as described in the script?

The script suggests that while the housing market is becoming less affordable for the average person, the upper classes and corporate landlords are seeing their investments in real estate skyrocket in value due to the continuous demand outrunning supply.

What are the implications of the housing market's current state for the younger generation, as mentioned in the script?

The younger generation is being priced out of the possibility of owning their own homes, leading to a situation where they are treading water just to keep their heads above the current, potentially leading to a housing market crash.

What historical factors have contributed to the current housing market situation, according to the script?

Factors such as overpopulation, inflation, inequality, and a lack of supply have contributed to the current situation over generations, as well as policies like the GI Bill that once made housing more accessible.

What is the average cost of a home in the UK as mentioned in the script and how does it compare to 2020?

The average home in the UK costs a little over £260,000, which is £45,000 higher than it was in 2020.

How have interest rates affected the housing market, as per the script?

The Bank of England has raised interest rates 14 times in the past 2 years, making it more expensive to borrow money, leading to harsher mortgages and less willingness to buy among people.

What is the role of institutional investors in the current housing market, as described in the script?

Institutional investors like Blackstone, Goldman Sachs, and Pretium Partners have been buying up single-family homes, contributing to increased demand and artificially raising house prices, as well as turning homes into investment assets.

What is the potential impact of the current housing market on the rental market, according to the script?

The script suggests that the rental market could be negatively impacted by the housing market, with increasing rents making it harder for people to save for a deposit and contributing to a cycle of debt and financial instability.

What is the script's view on the future of home ownership and renting?

The script suggests a bleak future where institutional investors may control a large portion of the rental market, and the concept of individual home ownership may become less common, with predictions of a shift towards a rental-based society.

What alternative investment is mentioned in the script as a way to protect and grow savings amidst the housing market instability?

The script mentions Fine Art as an alternative investment, with platforms like Masterworks offering a way for investors to participate in art sales and potentially profit from them.

Outlines

00:00

🏠 Housing Affordability Crisis

The script discusses the housing market's decline and the resulting affordability crisis in the United States. It raises concerns about a potential housing market crash due to surging prices that are pricing out a generation, while the wealthy see their investments grow. The script mentions the recent drop in house prices in the UK and stagnation in the US, questioning the driving force behind increasing housing costs and who will buy these homes if affordability continues to decrease. It highlights societal milestones like owning a home being unattainable for many and suggests that the current situation is unsustainable, hinting at a potential market crash or reset.

05:02

📉 The Impact of Housing Market Trends

This paragraph delves into the repercussions of falling house prices and the challenges faced by homeowners and potential buyers. It talks about the overstretching of homebuyers and how falling prices can exacerbate financial instability, especially with the backdrop of rampant inflation. The script also touches on the historical context of post-WWII housing policies that led to the current state of housing as an investment rather than a necessity. It discusses the role of Lewis Ranieri in creating mortgage-backed securities, which transformed the banking industry but also sowed the seeds for the 2008 financial crisis.

10:02

📈 The Transformation of Housing into an Investment

The script outlines the shift in perception of homes from being a basic necessity to an investment vehicle, largely influenced by institutional investors and Wall Street. It criticizes the commodification of housing, leading to inflated prices and a lack of affordability. The paragraph also addresses the failure of Silicon Valley's attempts to disrupt the housing market, such as Open Door, and the broader implications of the rental market, including high rents and the impact on personal wealth and societal structures.

15:03

🌐 The Future of Ownership in a Corporate-Controlled World

This section of the script contemplates the future where individual ownership is diminishing, with a focus on the rise of subscription-based models and the renting economy. It criticizes the World Economic Forum's prediction of a future where people own nothing but are happy, suggesting that this shift is driven by corporations for profit rather than necessity. The script also points out the broader societal implications, including the loss of privacy and the psychological impact of a consumer-driven, instant-gratification culture.

20:04

🚨 The Societal and Economic Ramifications of the Housing Crisis

The final paragraph addresses the potential long-term societal and economic consequences of the housing crisis. It suggests that the inability of young people to achieve traditional milestones like home ownership can lead to disillusionment and a lack of societal participation. The script warns of the historical precedents where disenfranchised populations have led to unrest or revolution, hinting at a potential societal shift or upheaval due to the current housing and economic conditions.

Keywords

💡Housing Affordability Crisis

The term 'Housing Affordability Crisis' refers to a situation where the cost of housing has become so high that a significant portion of the population cannot afford to buy or rent homes. In the video, this crisis is depicted as a major issue in the United States, where the increasing cost of housing is pushing people out of the possibility of home ownership, which is a central theme of the video.

💡Housing Market Crash

A 'Housing Market Crash' is a sharp and often sudden decline in housing prices, typically following a period of overvaluation. The script discusses the possibility of such a crash, suggesting that the current surge in housing prices might be unsustainable, and that a crash could be on the horizon, which is a significant concern for many Americans.

💡Priced Out

'Priced Out' is a term used to describe a situation where the cost of goods or services, in this case housing, has become too high for individuals to afford. The video script uses this term to describe how many Americans are being excluded from the possibility of owning a home due to the high costs, which is a key point in the discussion of the housing market.

💡Supply and Demand

Supply and Demand is an economic principle that describes the relationship between the availability of a product and the desire for it among consumers. The video script mentions this concept to explain how the demand for homes continually outruns the supply, which is a driving factor behind the increase in housing costs.

💡Stagnating Wages

Stagnating Wages refer to a situation where wage growth is slow or non-existent, failing to keep pace with the cost of living. The script discusses how stagnating wages, in the face of rising housing costs, make it almost impossible for the average person to afford a home, highlighting a significant economic challenge.

💡Interest Rates

Interest Rates are the percentage at which banks or other financial institutions lend money. The script mentions how the Bank of England has raised interest rates multiple times, making borrowing money more expensive and contributing to the difficulty of obtaining mortgages, which is a key factor in the housing affordability crisis.

💡Mortgage Back Securities

Mortgage Back Securities (MBS) are a type of financial instrument that represents a claim on the cash flow from a pool of mortgage loans. The video script discusses how the creation and sale of MBS by Lewis Ranieri revolutionized the banking industry and contributed to the housing market dynamics, but also played a role in the 2008 financial crisis.

💡Institutional Investors

Institutional Investors are organizations such as banks, insurance companies, and pension funds that invest large sums of money. The script talks about how these investors are buying up single-family homes, potentially leading to a future where more people are renters rather than homeowners, which is a significant shift in the housing landscape.

💡Renting

Renting refers to the arrangement where an individual or entity pays a periodic fee to use someone else's property without owning it. The video script discusses the increasing trend of renting as opposed to owning, driven by high housing costs and the actions of institutional investors, which is a central concern in the narrative.

💡Housing Shortage

A Housing Shortage occurs when the demand for housing exceeds the available supply. The script highlights the chronic housing shortage, particularly in the UK, which contributes to high rents and the difficulty of obtaining affordable housing, a critical issue in the current housing market.

💡Ownership Erosion

Ownership Erosion refers to the trend where individuals are increasingly unable to own assets such as homes and cars, instead relying on renting or subscription services. The video script suggests that this trend is part of a broader societal shift towards a rental or subscription-based economy, which has implications for personal wealth and financial stability.

Highlights

The US is experiencing a housing affordability crisis, with increasing numbers of people unable to afford their own homes.

There is a concern that the housing market is heading toward a crash, with many questioning the sustainability of current housing costs.

While demand for homes continues to outpace supply, upper-class investors and corporate landlords are seeing significant increases in the value of their investments.

House prices in the UK have begun to fall, with a 4.7% drop over the past year marking the highest level since 2009.

In the US, house prices are starting to stagnate after years of consecutive increases, yet affordability remains a challenge.

The concept of buying a home as a key to success and stability is becoming outdated as affordability declines.

Overpopulation, inflation, inequality, and lack of supply are contributing factors to the current housing crisis.

The average home price in the UK is significantly higher than it was in 2020, despite recent price drops.

Interest rate hikes by the Bank of England have made borrowing more expensive, impacting mortgage affordability.

Real estate investors like Warren Buffett are diversifying their portfolios in anticipation of a potential market downturn.

In June 2021, the UK saw the largest increase in homes bought, but by April 2023, sales had halved.

The average mortgage cost on a typical home in the US has decreased compared to two years prior, but affordability remains an issue.

Fixed-rate mortgage deals are coming to an end, which could lead to increased financial strain for homeowners as they renegotiate under higher interest rates.

Rising costs of living, including energy and food, are leaving less room for housing affordability.

The potential for house prices to fall further could lead to negative equity, trapping homeowners and affecting their financial stability.

The shift in perception of homes from a necessity to an investment has led to increased market manipulation by institutional investors.

The 2008 financial crisis was a result of risky mortgage-backed securities, yet the housing market has not seen a significant shift in approach post-crisis.

Silicon Valley's attempts to disrupt the housing market, such as Open Door, have faced challenges and financial struggles.

The rental market is also facing issues, with high rents and a shortage of affordable housing options.

The World Economic Forum's prediction that people will 'own nothing and be happy' reflects a growing trend towards renting and subscription services.

The housing crisis is part of a larger shift towards corporate ownership and control over various aspects of life, including housing, transportation, and data.

The current trajectory of the housing market and societal trends may lead to a breaking point where people seek alternative ways to achieve stability and success.

Transcripts

the housing market is on its last legs

every year more and more people get

pushed out of even having the

possibility of having their own home the

United States is going through a housing

affordability crisis corre now this

surge is causing many Americans to

wonder are we barreling toward a housing

market crash a whole Generation price

out their future treading water just to

keep their heads above the currents

meanwhile the entrenched upper classes

and corporate landlords see their

Investments Skyrocket in value as the

demand for homes continually outruns the

supply

but this presents a perplexing situation

if almost everyone is priced out of home

ownership then what's driving this rapid

increase in housing costs and even more

importantly if nobody can afford houses

who's going to be buying these homes in

the first place well maybe this is the

reason that for the first time in years

house prices have began to fall in the

UK and quickly we've seen a 4.7% drop

over the past year the highest level was

since 2009 and the US isn't far behind

pric is finally beginning to stagnate

after years of back-to-back price hikes

and yet even still it's almost

impossible for anyone to own a home and

with stagnating wages and less and less

ownership what's going to happen to the

housing market is this the beginning of

a crash has the market finally hit a

Breaking Point or is it just going to

recover reset itself and happen all over

again when you're a kid you get told

that there's a set of goals for you to

hit Milestones that make the difference

between success and failure some of them

are getting a college degree buying your

first car getting married and starting a

family but above everything else you're

told that buying your own home is the

key to not just surviving but thriving

it's not just an outdated pitch today

it's a fairy tale A Relic of a time when

homes were actually affordable and one

salary could support a family today

everything's different forces like

overpopulation inflation inequality and

a lack of Supply have gathered over

Generations putting us right where we

are today if you take a look at how

affordable housing is today it's the

worst has ever been in decades we all

know this and despite the Fallen prices

for the UK there's still a long way to

go before average people have a shot at

home ownership the average home still

goes for a little over £260,000

£45,000 higher than it was in 2020 a

figure that's over

$300,000 now a lot of this can be

chalked up to the 14 times in the past 2

years the bank of England has raised

interest rates making it far more

expensive to borrow money this has meant

far harsher mortgages and less people

willing to buy dropping

prices both buyers and sellers are

getting squeezed and real estate m like

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past performance is not always

indicative of future

performance in the short term the UK is

facing the potential of a major crush

the postco recovery hasn't gone as

planned everything got far more

expensive as inflation outpaced wages

we're now only seeing wages even begin

to catch up when the interest rate was

0% during Co and even before mortgage

dealers were much cheaper lots of people

took advantage and got in the property

ladder buying expensive houses every

house is expensive today but still June

of 2021 saw the largest increase in

homes bought in the UK by a wide margin

over 165,000 in April of 2023 it was

just under 40,000 homes sold half of

what it was just a few months before and

it's a similar picture in the US over 6

million homes were sold in 2021 it

dropped by a million in 2020 and is

expected to drop a bit over 4 million

this year the average mortgage on the

average home with a 20% down payment

cost

$2,440 a year now in the US nearly

$1,200 less than it was 2 years ago when

all these deals were being signed lots

of these homeowners got in with

comparatively good deals but those fixed

rate deals are coming to an end soon

it's the next few quarters where you'll

see the worst pain for the housing

market because the majority of mortgage

borrowers in the UK are on fixed rates

and the bank of England estimates that

only a third of the rate hikes that have

already been done have passed through

already as those mortgages all get

renegotiated to today's interest it's

going to leave people with a massive

jump in monthly payments payments that

are still just going to the bank for

interest a massive proportion of people

won't be able to make the payments a

similar situation to what happened in

2008 other costs like energy food and

the rest have all gone Skyhigh as well

leaving little room for this the average

American is already over $10,000 in debt

through credit cards alone people are

overstretched and falling house prices

will only make things worse without

Equity people will be left without the

means to downsize and buy a different

house this is just one reason why it

might not be a great idea to sell your

house right now in the UK home prices

have dropped for 6 months in a row the

only thing keeping them up has been the

rampant inflation real drops are as high

as 133% once you account for it with

even more price drops looming any home

you buy might fall in value by 10% or

more within a year if you only had

enough for a small deposit under that

amount you'd end up losing far more

money than if you just waited or rented

massive interest rates also aren't

helping things and they aren't going to

go away anytime soon they make it so

much more expensive to pay off a

mortgage especially considering the

first years of the deal and mostly

paying off interest this means you'd be

stuck paying the banks far more than

usual in a few years the interest rates

will hopefully have C down and there's

also the very clear potential of a

massive crash right now anyone with skin

in the game that knes downsides after

the massive hit would find it hard

everything we just talked about would

make make it much more costly to get out

of a bad deal it's a cruel Circle that

tons of people need house prices to fall

to be able to afford one but if they do

fo it will ruin millions of other

people's Financial plans and stability

it's a result of the shift in Fus and

homes from a necessity and a commodity

to an investment after World War II when

the Boomers were being born buying a

home was a lot different everything was

a lot different really compared to our

current stagnation it was a time of

rebirth in the US this growth was pushed

by the GI bill to reward the people who

fought in the War and restart the

economy the government provided a

massive package of a to Veterans they

subsidized mortgages paid people a years

worth of wages if they were unemployed

and gave out low interest loans which

people could use to build a new life it

was a reflection of a less specific

rebuilding project going on throughout

the West in the UK over 1.2 million new

homes were being built between 1946 and

51 house prices remained steady and low

for years more were being built and

mortgages weren't seen as financial

investments like they are today there

wasn't an expectation of continued

growth offset against interest payments

it was this world of prosperity that the

baby boomer generation was born into to

and they enjoyed the benefits as they

were growing up and buying their own

homes but it couldn't last forever over

time through building frenzy died down

more people were born more families were

created and more houses were needed soon

enough demand and inflation started to

outpace the supply and the prices

started going up by now it was the' 70s

and masses of baby boomers had grown up

and bought their own homes there were

more mortgages than ever for the banks

to play with but the current model

wasn't working too well back in those

days mortgages were from shorter had

highed deposits and a final lump sum to

be paid at the the end of the ter there

wasn't much room for the banks to make

interest and they had to deal with each

mortgage individually they weren't

glamorous or particularly good at making

large amounts of money for the banks but

one man could see their true potential

for profit and his name was Lewis

Ranieri Lewis was born in New York in

1947 to an obscure relatively unknown

family after dropping out of college his

first job in the banking industry was

unremarkable starting in the mail room

at a firm called Solomon Brothers leis

spent a decade slowly working his way up

the corporate ladder early in his career

though his boss is noticed his skills

with maths and his ability to see profit

where others couldn't along with his

uncanny salesmanship and so as he went

up the totem pole Lewis eventually found

himself in a leading role at the

mortgages Department in his bank it

would have been a dead end for most but

Lois's biggest strength was his ability

to innovate and it was here that he

would come up with his career- defining

idea the mortgage back security it

worked by combining a whole set of

mortgages from various homeowners into

one asset which would pay out the

interest payments made to whoever owned

it Lewis had single-handedly turned

mortgages into a profit Bonanza using

his sales techniques and the help of a

banker called Larry think their Bank

sold them by the truck Lads with other

Banks and Pension funds across the

country and this was one of the most

important shifts in the last century

Lewis had turned what was once a boring

commodity designed to let people have

homes into something his bank of friends

could exploit to make billions you might

not know who he is but he changed your

life more than Michael Jordan the iPod

and YouTube put together you see Lewis

didn't know it yet but he'd already

changed banking forever with one simple

idea the mortgage Bank security you've

got your average person's mortgage fixed

rate 30 years boring safe small payoff

right when you have thousands of them

all bundled together suddenly the yield

goes up but the risk is still small

because well they're mortgages and who

the hell doesn't pay their mortgage and

it was these mortgage back Securities

that would eventually lead to the 08

crash but for now it was incredible for

the banks the mortgage back security

Market was worth 150 billion by 1986

just a few years after Lewis had his

bright idea but before that happened a

few other changes in the housing markets

led to the disaster we're watching on

for today as the Boomers got their homes

and became the largest voting Block in

history they started favoring laws that

would keep house prices High politicians

obliged happy to make more money

themselves housing subsidies ended the

GI Bill never saw modern renewal and

bureaucratic red tape surrounding

housing got a whole lot worse once the

Boomers had gotten inside the market

they made sure it was incredibly

difficult for anyone else to do the same

it led to the Labyrinth Maze of zoning

codes planning permission and arbitary

limits that we know today the flow of

new houses dried up as construction

companies had to get permit after

department just to start a new

development they added years of legal

fees waiting and paperwork to the

process so even though it was in The

public's interest for more houses to be

built it just wasn't profitable for

developers and today resistance to any

new housing developments that aren't

more Suburban Wasteland has gotten so

bad that there are protest by pensioners

whenever a car park gets redeveloped

into more housing like this protest in

the summer of 2023 in London where old

homeowners gathered to keep their

investment safe from a new set of

affordable apartments which could

replace their beloved car park their

local MP is right behind behind them of

course and all of this resulted in the

current view of housing as an investment

something for Wall Street to tamper with

for people to sit on their whole lives a

way to build wealth rather than a basic

necessity for survival this kind of

thinking is completely toxic to society

the 2008 crisis was the result of

Decades of this bilding up and Lou

rary's mortgage bonds only got worse and

more risky Banks made so much money off

of them that they interfered with rating

agencies which determined how risky they

were corruption and collusion meant

incredibly risky awful mortgages were

backed up and sold as safe Investments

they invested trillions into these

mortgage back Securities and eventually

it all blew up Millions were left

without homes and the economy went into

a nose dive but it's still was

struggling to recover from you would

expect that such a massive failure of

the whole system would ignite a complete

rethinking of how we treat homes but

you'd be wrong the banks got bailed out

with taxpayer money and they pretty much

got off scot-free if anything the banks

have gotten even more Reckless and

predatory firms like Blackstone Goldman

Sachs and pretium partners have bought

hundreds of thousands of single family

homes you don't need me to tell you how

awful this is aside from the Practical

effects of increasing demand and

artificially raising house prices it's

symbolic of how institutional investors

have literally taken control of people's

homes once they're on the books for

these corporate investors they hand over

the management to monolithic letting

management companies these corporate

landlords then put the bare minimum into

keeping the homes maintained as well as

skipping on anything else that impacts

their bottom line if tenants complain or

the bank see more money in it they get

evicted the 2022 prediction by one asset

manager states that if patterns continue

as they are institutional investors

could ear 40% of the single family

rental homes on the market by 2030

Silicon Valley has also been looking for

a way to solve the housing market take

Open Door a company that uses algorithms

and a tech driven instant access

business model to try and undercut

estate agents their basic plan is to

build up large amounts of liquid assets

and use these to buy homes from people

looking to sell they use algorithms in

AI to figure out how much it's worth buy

it for a bit less than that and then

sell it on after a few months the

problem with their plan is that you

can't just throw some algorithms

buzzword and investor money at the

housing market to make money you still

need to deal with in-person viewings

repair and renovation costs and all the

ground stuff to make that happen and the

financial data has been troubling from

open door and their competitors as their

stock price has been fing for a straight

year shares of open door cratering today

after reporting a steep second quarter

Revenue decline in a pretty weak Outlook

causing them to lose a billion dollars

in the past year alone it's clear proof

that their business model just doesn't

work even with all the hype of getting

some big names in Silicon Valley to bank

roll the operation it hasn't panned out

instead it's just another example of how

silicon Valley's Miracle Solutions often

end up as massive pump and dump schemes

to make the founders richer when they

inevitably sell the company the rental

market is one side of the story that we

haven't covered yet everything that

we've talked about has led to insane

rents the higher rent goope the less

likely it is for people to be able to

afford a deposit if you're paying 50% of

your income to some landlord or some

Wall Street Bank it cripples your

ability to save up anything and it's a

complete drain on the economy that's not

an exaggeration for some as londoners

are paying over 50% of their income to

rent on average London renters also paid

around £3,000 more than homeowners for

is essentially a much worse deal on

average across the UK renters pay around

34% of their income on average to

housing costs nearly four times as much

as the 9% that the average homeowner

pays now sure homeowners are normally

richer than renters so the figure is

cued by that fact but it's still a clear

example of how the West is changing the

rich get richer and the poor get poorer

what's really destroying the renting

Market though is The Chronic housing

shortage the majority of local councils

in in the UK haven't built a single home

in the past 5 years despite over a

million people on the waiting list

Nationwide anyone who's been in the

unfortunate position of needing to rent

a place in a big city knows how awful it

can be in New York our long Waits and

long lines of viewers are the norm for

even the most overpriced dilapidated

Apartments elsewhere it can take months

to find a place with renters often being

forced to offer the first 6 months

upfront or even the whole year just to

get a chance add in reference checks and

the evasive questions and it's more like

a job interview now all of this and

people get much smaller rundown Living

Spaces you just can't build a good life

on your kitchen your bedroom and your

living room are all the same room it's a

trap that more and more people can't get

out of in the UK the renting population

has doubled in the past 20 years and if

you're stuck renting then you're always

stuck paying someone else's mortgage

building their wealth and life instead

of your own however predatory mortgages

might get at least that's the eventual

promise that you actually own the home

although that's after you've paid years

of interest to the bank and you probably

won't actually own the land you just

lease it it's a trend that surpasses the

housing crisis the movement away from

Individual ownership in the world

economic forum's Infamous predictions

for 20130 they claim that you will own

nothing and be happy with it this is the

key and it's a big part of why

institutional investors are scrambling

to get in on the rental market by buying

up family homes they know what's coming

because they're constantly trying to

create it the ingredients for it are

already here you don't need to own your

own car you can just use Uber if you

need to buy anything a drone can deliver

to your house you don't need a cashier

you can use a machine you never actually

need to leave other than going to the

other tiny cubicle where you can spend

the other half of your life in

artificially lighted work might as well

get your money's worth for that $3,000 a

month studio apartment anyway you don't

need to actually buy anything either you

can just use credit to pay it out over

the course of years you don't need to

own a home you'll be much happier

renting for the rest of your life even

media and entertainment operate off

these rules now subscription systems and

monthly fees and the new Norm for

everything it spreads so far that

printers and other appliances now have

subscription fees sub subscriptions that

lock people out of using the thing they

bought if they sto paying them obviously

most people aren't happy about this it's

a major cause for the underlying

resentment You' seen people today but

what choice do they have take the car

example most people in America live in

places with little to no public

transport even your own two legs are

mostly useless because everything's so

spread out and built for cars Uber and

ride sharing is becoming the only choice

that's despite the fact that it's far

more expensive in the long run anyway

it's soon becoming a world where

corporations own everything it lets them

extract far more money out of each

person person if you're a company and

you sell something for $100 obviously

you only get $100 but if people rent it

though for just $5 a month they're

already pay more in less than 2 years

turning every transaction into debt

simply makes them more money and gives

them more power ownership is being

eroded everywhere you look even your own

privacy is gone renamed as data and

stolen by these same companies to make

the advert slightly more annoying and

effective it's all part of the modern

Fugal system that they're trying to

create but most people can't see the

bigger picture here they just see the

instant access we now have to every kind

of instant pleasure you could possibly

think of and they consider it progress

our current Pace we may well hit the

world economic forums predictions of

2030 often it's framed as a necessary

change in order to stop climate change

the responsibility shifted to regular

people pressuring them to use paper

straws take shorter showers and

generally live worse lives it's a

psychological tactic to shift the blame

without even acknowledging it happened

the real damage is done by corporations

and governments of all the garbage in

the ocean most comes from rivers and 93%

of that plastic comes from just 10

Rivers eight of them are in Asia yans

being the largest Pluto and the other

two are in Africa as for carbon

emissions 71% of it comes from just 100

of the largest companies the top 20 are

responsible for a third of all the

carbon emissions and so the housing

crisis is just the tip of the iceberg

and we can only hope that things will

get better eventually if anything is

true though is that everything is always

changing things can't go on forever like

this the resemblance and anger will

eventually reach a breaking point one

thing the world economic Forum won't be

right about is that people will be happy

with this new normal that's at least

something we can count on but all this

said though what's going to happen next

for now the housing market looks like

it's on the brink with far less people

selling movement has been propped up at

the upper end through cash purchases of

million dooll homes in capital cities

that definitely isn't anything shady ATU

about these Anonymous buyers right you

know I've been paying attention to uh

these companies that are buying up

affordable housing yeah like Black Rock

and Zillow yeah that's scary it is scary

that's scary cuz if they can move the

Entre country into renting like right

nobody can own that's what they want to

do right that's what I'm saying they

don't want anyone to own anything if you

get a a giant majority of the population

that are just renters that don't ever

own property they never have their own

real real home yeah and then you make

sure that you control their wage because

you have massive corporations whether

it's Target or Amazon or whatever and

they limit the amount of possible growth

you have within a company yeah and there

was that article you'll own nothing and

be happy in 20

that is wild rents have been going up as

well as they have been for years now an

increased mortgage costs have put dent

in landlord's bank accounts of course

but not enough to compensate for the

massive price hikes we see today the

result is a whole generation locked out

of the entire system and exploited for

what little money they do have it's a

big reason why so many people are forced

to just stay at home well into their 20s

and not for much longer without rich

friends to house share with or very rich

parents that can subsidize a deposits

there isn't any other choice in the UK

over the past decade over 620 thousand

more young people are living with their

parents compared to 10 years ago it's

not just a problem caused by the housing

crisis though obviously it does carry a

lot of the blame the pandemic wrecked so

many people's social lives and

confidence that keeping people at home

years after they also put the breaks on

tons of people's plans throwing a wrench

into any hopes they might have had of

moving out men have been more affected

than women making up 2/3 of the young

adults still at home often a comparison

is drawn between other cultures where

children often stay at home for years

after graduating or entering the

workforce but this can't be a reason to

say the situation isn't a disaster on a

societal scale it should be a choice

that people can make not something

they're forced into then there are those

people who aren't lucky enough to even

have the option they're stuck in a world

of private rentals housing shares with

strangers and exorbitant rents nobody

can truly and accurately predict the

long-term future of the housing market

but what you can do is look at the

Historical precedence of these kinds of

situations when millions of young people

get shut out from success it undermines

their reason for participating in

society if you know that hard work when

pay off what's the point historically a

large population of young men and women

completely disenfranchised isn't a

predicted for Success they can only take

so much before they either give up or

look for a different revolutionary way

to make a good life for themselves we're

already seeing the first of these things

happening all the time and it won't be

long before we see the

second