Will Millenials Never Be Able to Buy a House?

Will Millenials Never Be Able to Buy a House?

Speaker 1: Let's go. Where do we go 
next? It's tough to after that. It's   hard to know. Let's go to Andrew from 
Menlo Park. Andrew, you're on the air.  Speaker 3: Hey, David, you hear me.
Speaker 1: I can't hear a little low,   but I'm going to bump you up. Go ahead. OK.
Speaker 3: I'm I've been wanting to ask you   this for a little bit. It's not really related. 
It's kind of related to politics. But I'm with   the kind of skyrocketing housing prices seeming 
not to really.

Down very much and first time   buyers really kind of signaling being completely 
shut out of the market from my generation.   A millennial. I'm 30 years old. What can the 
government do to help with that situation   or is buying a house just going to be 
a wealth generation tactic for my age,   who basically just inherit from their 
parents or just can't buy it all? And   they just they're being renters for life?
Speaker 1: A lot of unknowns there. First of all,   any answer there's not one answer to your 
question about how the housing market,   because there's multiple markets and the answers 
are going to be extremely regionalized. There are   parts of the country where housing is still far 
more affordable than others, and there's still a   question as to with more remote work potentially 
becoming permanent. Whether you're going to see   a shift from folks earning OK salaries in big 
cities, going to cheaper areas and being very   well-positioned to buy homes there, of course, 
that will raise the value of real estate in those   second or third tier areas.

So all of 
this is is a lot of moving parts. But   I've been reading a lot about this and there there 
are people who believe that these high housing   prices are essentially here to stay. If that's the 
case, it's going to make it really difficult for a   lot of young people, including people still paying 
off student loans to be able to buy homes. And you   can make the case that that's a really, really bad 
thing, particularly when for so many households,   their home is the number one driver of net worth. 
And without that, savings and net worth are   dramatically impacted. I just think there are too 
many unknowns, and much like with the question of   like, where's the stock market going to be in 
two years or in five years, we are terrible at   predicting this stuff.

So I think anyone telling 
you anything definitive an answer to these   questions, they're just guessing and you should. 
I think we just do not yet know. And particularly   with work from home, there's people who say 
we're going to see like a nationalization of   of housing markets, of course, San Francisco still 
going to cost more than than Tulsa. Right? But   there's going to be less of a gap that may be 
the case. We may see things go in a different   direction. I just think we don't yet know, but 
there's no question that it presents massive   difficulties for people, particularly young 
people paying off student loans at this time.  Speaker 3: Oh, you don't think that as far 
as the question about what government can do,   you think that they should just.

biden administration

no government intervention in that. Maybe   the market corrects itself? I'm fine.
Speaker 1: I'm fine with government   involvement in affordable housing. Now, when I 
say affordable housing, I don't mean literally   housing designated affordable housing units. But 
in making housing affordable, I have no moral   issue with government involvement. I think 
that that's fine. I'm just not sure exactly   what that involvement should be because much of 
the idea around what that involvement should be   conflicts. So I have I'm fine with there being 
a role for government. I think it could be a   good thing.

Maybe it's state government, maybe 
it's federal government, but I would want to be   real clear as to what that involvement should 
be, and it's not exactly clear to me right now.  Speaker 3: OK. Thanks for. Yeah. It just seems 
like the government's really involved on one side   of the Earth aspect of driving housing prices. 
They're kind of supporting current homeowners   being able to stay in their houses, 
therefore kind of creating more, you know,   less supply less. You know, it just seems like 
they're involved in propping up the housing   market rather than kind of bring prices down.
Speaker 1: Yeah, I mean, you know, government   is very involved in the regulation of mortgages, 
at least the ones govern Fannie Mae, Freddie   Mac. That's another area where government's 
already involved. You could argue that that's   not really made housing more affordable. 
But yeah, I have no problem with government   involvement.

I just want to feel good that that 
government's being involved in a productive way.   Appreciate it. All right, thank you 
for the call, very much, appreciate it.   A lot of great questions 
today. Very much appreciate it..

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