Housing Crisis 2025 (Uncut) 02-17-2025
Housing Crisis 2025: This Is WHY New Tariffs Will DRIVE UP Rent Prices Across the US
welcome back everyone there’s quite a lot going on right now in this video I will focus on what you may want to expect with regards to the housing affordability in the near future we’re going to discuss rent price increases and we’re also going to discuss the effect of uh president Trump’s tariffs on the housing market so just a couple of years ago there was this fantastic construction boom single family residential Builders could not keep up with demand single family homes in nearly all us markets were hitting
record highs gaining tens of thousands of dollars in value in the matter of weeks you may recall that well that lasted until the end of 2022 when the oversupply of new home Inventory drove a decline in apartment rents this is about to change more tenants across the United states are in heated battles for vacant space right now last year an average of nine perspective renters were competing for every open apartment unit on the market and this is according to data published by Ren Cafe this means that we
are about to see yet another change in the United States housing market it is going to be due to the housing affordability crisis of course which left many Working Families unable to purchase a home to become homeowners and just how bad is that housing affordability crisis well let’s take a quick look so we understand the context according to the US Census Bureau and US Department of Housing and Urban Development the median home sales price has been in a continued upward Trend but that is not the real issue here the real
issue is that as you can see home prices have been increasing at a much faster rate than income levels income cannot keep up so that resulted in homes becoming more unaffordable over time not surprisingly a recent survey shows that 69% of Americans said that they were quote very concerned about the cost of housing and that was nearly a 10% increase in a SP of only 12 months well a recently published article in the Wall Street Journal says don’t expect things to get any better expect higher rent
prices now so the housing affordability crisis is going to get worse in the United States believe it or not as home prices remain relatively high and demand is weak due to higher interest rates as well as other reasons now many Americans should PR prepare for rent prices to start increasing that is terrible news for Millions because it points to that very ugly word that we’ve all gotten very very tired of the word you don’t want to hear and that word is inflation more inflation Wall Street Journal
writes the relationship is going to flip from a renter friendly environment to a landlord friendly environment very quickly shelter costs count for roughly a third of the Consumer Price Index of that CPI that we hear about every other month or so from the fed and so that means that a significant portion of the overall inflation measure which is something that the Federal Reserve pays very very close attention to it is attributable to housing costs the Federal Reserve knows that unless housing costs
decline there is absolutely no way for them to reach that imaginary 2% inflation rate and as rent prices go up inflation will likely increase too as it has been in turn the Federal Reserve is likely to feel that any future rate Cuts should be paused because otherwise the FED would be fueling more inflation it is important to know that an increase in rent is not something that is forecasted to begin at some point point in the future it has already begun in many housing markets throughout the United
States this uptick in monthly payments is the result of demand and Supply in those areas where maybe new apartment deliveries have been passed or have not been able to keep up um or if there is an unexpected increase in new residents or even migrants now Donald Trump has already imposed tariffs on mexic meico and Canada several weeks ago and he’s now promising new tariffs on the wide range of foreign States what is that going to do to housing costs that’s right it is likely to drive them up here’s what the Wall
Street Journal has to say about this this is something that I’ve been talking about for months in the context of tariffs and why protectionism is not a good idea president Trump’s policy mix says Wall Street Journal might slow the pace of new construction even further and I will give you some interesting data in a second migrant deportations and threats to hit Canada and Mexico with tariffs would likely boost the cost of construction labor and materials as well as delay building timelines the US
depends on Canada and Mexico for roughly 25% of its Building Material Imports and this is ACC according to the National Association of home builders and undocumented workers make up roughly 133% of the construction Workforce this context is very very important because it shows how everything is related how it is interconnected and if you want to support Mass deportation go ahead that may or may not be a valid argument but we then also need to look at a bigger picture here and understand and what
immediate effects such policy choices will bring Wall Street Journal says new apartment construction is already starting to taper off the number of multifam building permits issued in the south over the past year is 4 percentage points below its pre-pandemic 2019 average and this is according to Bank of America’s analysis of Census Bureau data demand for rentals is rising studly across the United States the multif family vacancy rate is now below its long-term average for the first time in about 2 years the housing affordability
crisis is far from over if you’re a renter if you’re a homeowner in the United States you really need to be paying very very close attention to this please leave me a comment below what are you seeing in your areas I would love to hear from you are you seeing rent uh remaining relatively flat or are there any increases in rent prices what is going on with the housing market in your area let us know in the comments below thank you for watching as always remember to show your support it truly goes a long way like subscribe and share
follow the Social Links in the description below it really means a lot enjoy the rest of your day and I will see you back here tomorrow bye for now
