Is There A Solution To Housing Unaffordability?

[Michael Carbonare]

𝐓𝐡𝐞 $𝟏𝟏𝟐,𝟎𝟎𝟎 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧: 𝐂𝐚𝐧 𝐀𝐦𝐞𝐫𝐢𝐜𝐚𝐧𝐬 𝐒𝐭𝐢𝐥𝐥 𝐀𝐟𝐟𝐨𝐫𝐝 𝐚 𝐇𝐨𝐦𝐞?

In 2015, you needed about $55K a year to afford a home. Today? $112K.
That’s double in less than a decade while median incomes barely moved.

This isn’t a “high mortgage rate” problem. According to recent Fannie Mae calculations,
it will take one of three things, or a combination of them to get back to affordable housing in America:
Housing prices would need to drop 38%
Median household income would need to rise 60%
Mortgage rates would need to fall to 2.35%

This widening gap is why creative investing strategies are becoming more important than ever. They allow everyday people to participate in real estate without needing six-figure incomes or perfect timing.

The data tells the story. The opportunity lies in how we respond to it.

[Ken M.]

Quote from @Michael Carbonare:

𝐓𝐡𝐞 $𝟏𝟏𝟐,𝟎𝟎𝟎 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧: 𝐂𝐚𝐧 𝐀𝐦𝐞𝐫𝐢𝐜𝐚𝐧𝐬 𝐒𝐭𝐢𝐥𝐥 𝐀𝐟𝐟𝐨𝐫𝐝 𝐚 𝐇𝐨𝐦𝐞?

In 2015, you needed about $55K a year to afford a home. Today? $112K.
That’s double in less than a decade while median incomes barely moved.

This isn’t a “high mortgage rate” problem. According to recent Fannie Mae calculations,
it will take one of three things, or a combination of them to get back to affordable housing in America:
Housing prices would need to drop 38%
Median household income would need to rise 60%
Mortgage rates would need to fall to 2.35%

This widening gap is why creative investing strategies are becoming more important than ever. They allow everyday people to participate in real estate without needing six-figure incomes or perfect timing.

The data tells the story. The opportunity lies in how we respond to it.

Your Question "Is There A Solution To Housing Unaffordability?"

No, actually, it's a spiritual problem and can't be solved with natural means. I spent 5 years tutoring in a poor black government housing project. As you can see, the closest I am to being black is several generations ago, if at all. Now, mind you, there are more poor whites than poor blacks. My native Irish come to mind. But, this poor neighborhood happened to be black. 

Some people have chosen to follow bad advice and bad attitudes and bad habits. I was there in the community to help, elementary kids in this case, who always seemed to love me, but I was not welcome by a lot of adults, because I'm "white", actually I'm flesh, but that's a different story. . Poverty is taught, and poor adults know very well how to teach living off of the system.

As an example, I know someone who was often in trouble with the law. He was young, in good health and for years he lived off of social security services "disability" payments. When Reagan cut the program for some people, he was kicked off the "system", got a job and has worked ever since, gainfully employed, paying taxes, now in retirement collecting Social Security from a system he actually paid in to.

There was no physical reason he was collecting social security services "disability" payments, it was a spiritual problem. But it had to be treated with a physical solution, being forced to work or starve. Being hungry focuses the mind. 

When people are raised with a poverty mindset, giving them things and coddling them makes it worse, not better. For most people (not all) but for most, subsidized housing is a big mistake.