Ender’s Post

So I never noticed this before this morning but if you compare maps of red states to blue states they strongly correlate to the affordability of housing. Red states have more affordable housing and the bluer the state the more unaffordable it's housing becomes. A much better measure of prosperity is the median home price to median income ratio. So based on meaningful prosperity measures it seems that red states generally outperform their blue peers. GDP is nothing but the measure of how much money rich people are making. Per capita GDP is the measure of money rich people are making from the people they exploit. This also explains why socialism is more popular in blue states. Liberal democrats create income inequality and socialism rises when income inequality rises. The Democratic party has been clever to use fake socialists like Bernie Sanders and Ocasio Cortez to contain socialism and capture the progressive vote.

While current cost burdens are high by recent standards, they are especially high when looking at affordability trends over the last 60 years. Looking at this span of time shows how two periods, the 1970s and the Great Recession in the late 2000s, fueled the modern affordability crisis. https://hubs.ly/Q02r63jL0

The 2024 State of the Region report reveals that while Hampton Roads is experiencing its best economic growth in over a decade, the housing market remains a significant barrier. Rising home values and rental costs are outpacing wage growth, locking many families out of homeownership and contributing to outmigration of young talent. Economists urge local governments to streamline regulations and permit higher-density development to increase housing supply. By addressing these challenges, we can not only enhance accessibility but also fuel sustained economic progress. Now is the time for action! 🏡💼 #HamptonRoads #EconomicGrowth #HousingCrisis

𝗞𝗲𝘆 𝗪𝗲𝗮𝗹𝘁𝗵 𝗗𝗶𝘀𝗽𝗮𝗿𝗶𝘁𝗶𝗲𝘀 𝗛𝗼𝗺𝗲𝗼𝘄𝗻𝗲𝗿𝘀 𝘃𝘀. 𝗥𝗲𝗻𝘁𝗲𝗿𝘀: Homeowners aged 55-64 with a pension have a median net worth of $1.4 million, while renters without a pension in the same age group have a net worth of only $11,900. 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲 𝗮𝘀 𝗪𝗲𝗮𝗹𝘁𝗵: Owning a home has become essential for financial security in Canada, with many young families and lower-income groups trying to buy property. 𝗬𝗼𝘂𝗻𝗴 𝗙𝗮𝗺𝗶𝗹𝗶𝗲𝘀: For families under 35, homeowners have a median net worth of $457,100 compared to $44,000 for renters. Some renters are also investing in real estate not used as a principal residence to build wealth. 𝗚𝗿𝗼𝘄𝗶𝗻𝗴 𝗪𝗲𝗮𝗹𝘁𝗵 𝗚𝗮𝗽𝘀 𝗥𝗶𝘀𝗶𝗻𝗴 𝗡𝗲𝘁 𝗪𝗼𝗿𝘁𝗵: Overall median net worth of Canadian households is $519,700, up 57% from 2019. Young households (under 35) have seen a significant increase, with net worth rising from $56,400 to $159,100. 𝗦𝘂𝗿𝘃𝗲𝘆 𝗟𝗶𝗺𝗶𝘁𝗮𝘁𝗶𝗼𝗻𝘀 𝗪𝗲𝗮𝗹𝘁𝗵𝗶𝗲𝘀𝘁 𝗛𝗼𝘂𝘀𝗲𝗵𝗼𝗹𝗱𝘀: The survey doesn’t fully capture the wealth of Canada’s richest families, as it caps its highest wealth tier at the top 5%, missing billionaires and ultra-high-net-worth households. 𝗨𝗻𝗱𝗲𝗿𝗿𝗲𝗽𝗿𝗲𝘀𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗪𝗲𝗮𝗹𝘁𝗵 𝗖𝗼𝗻𝗰𝗲𝗻𝘁𝗿𝗮𝘁𝗶𝗼𝗻: While the survey estimates the top 1% holds 13.7% of the wealth, other data sources suggest they actually hold around 24.8%. 𝗖𝗮𝗹𝗹𝘀 𝗳𝗼𝗿 𝗖𝗵𝗮𝗻𝗴𝗲 𝗗𝗮𝘁𝗮 𝗳𝗼𝗿 𝗣𝗼𝗹𝗶𝗰𝘆: Skilleter argues that missing data on Canada’s wealthiest prevents a full understanding of economic inequality, which could inform more effective public policy.

How much income is needed to raise a family of 4 in the most expensive cities in the US? A SmartAsset analysis has found that in order to live comfortably in the most expensive cities in the U.S., a family of four requires an income exceeding $275,000 annually. The definition of "comfortably" follows a 50/30/20 budget rule, which allocates 50% of income to necessities like housing and utilities, 30% to discretionary spending, and 20% to savings or investments. This analysis uses data from the MIT Living Wage Calculator to determine the necessary income based on the cost of living in these areas. The cities topping the list for the highest required incomes for a comfortable life include San Francisco, San Jose, and Boston, with San Francisco requiring an income of $339,123 for a family of four. The list predominantly features cities in California, reflecting the state's high cost of living and expensive housing market. The median income needed across 99 cities examined is $226,886, significantly higher than the U.S. median family income of $92,750. Despite the higher salaries often offered by employers in these cities to attract talent, the steep housing costs challenge the maintenance of a 50/30/20 budget. Families in these areas frequently have to forgo homeownership, vehicle ownership, and discretionary spending to manage their finances, indicating the broader issue of housing affordability in major U.S. cities. #highcostofliving #familyoffour #California #503020 #expensive #housingaffordability https://lnkd.in/gJh7u5H2.

So, to live “comfortably”, you have to be in the top 5-10%? ·       The top 10% of household incomes starts at $191,406, the top 5% at $290,406, and the top 1% at $867,436…https://lnkd.in/eTwtqX2e. “Comfortable” is defined as the income needed to cover a 50/30/20 budget, with 50% allocated to necessities like housing and utilities, 30% to discretionary spending, and 20% to savings or investments.” https://lnkd.in/eApdr_wa. All the while, only 4% of the global population (the U.S.) accounts for a whopping 26% of global GDP: https://lnkd.in/eDwYJUm7. Middle-class? Side note…My students in Silicon Valley say making $200K+/yr feels like making $90K/yr in Metro Detroit. Some pay close to $6K/month for rent (so they need roommates). Owning a home will be tough (that’s why most come back): https://lnkd.in/eGb4Y3Z9. https://lnkd.in/ehPP-8Ai

Wealth Gap Between Homeowners and Renters in Canada The latest report highlights a stark wealth disparity, with Canadian homeowners, especially those aged 55-64, holding significantly higher net worth than renters. Even younger households show similar gaps, despite increased real estate investment by some renters. Homeownership continues to drive financial security, while renters face tougher challenges in building wealth. What are your thoughts on real estate’s role in addressing this wealth gap? Will we see a shift in financial priorities?

Getting onto the property ladder is increasingly challenging for young people. Canadian households under the age of 35 have experienced a -2% change in household net worth from Q2 2023 to Q4 2023, the largest relative to any other age group. Moreover, households under the age of 35 are the only group to see disposable income decline during the time period. This could be a result of the labour market softening for younger workers. According to unemployment data, individuals aged 20-24 have seen their unemployment rate rise to over 10% over the past year. As a result, purchasing a property may seem like an impossible task for many younger individuals in major cities, due to the unbalanced housing supply and demand that have kept housing prices resilient despite significant rate increases over the past two years. Although there are new government incentives to encourage the construction of more rental properties, many private developers are slowing down as the economics of development don't make sense in the current high-interest-rate environment. This hampers long-term housing supply for purchase and resale. Fortunately, there are newer programs available to assist younger individuals in entering the housing market with down payment assistance and more flexible qualifying criteria. While this won't completely solve the problem, it does provide the younger generation with an opportunity to break into the housing market despite the current challenges. If you'd like to learn more about this, feel free to DM or reach out to me via the link in my bio! #canadianhousing #housingmarket #genz #firsttimehomebuyer #torontorealestate

Access to housing in the U.S. is just one of the many issues Americans face as they grapple with the economic environment today. That, paired with higher interest rates, and increased cost of groceries and basic essentials, makes homeownership—once the cornerstone of the American Dream—an increasingly elusive reality. Click below to read more.

Appreciate this analysis of how and why Canada's housing market is creating more and more inequality. This stat says so much about where we are headed: "Collectively, renters spent nearly 9% more than they earned in household disposable income in 2023, while homeowners saved 7% of their take-home pay." WOW. I'm also having difficulty with talking about this inequality as "squeezing renters." Like it's a hug from from the housing market that has gone a little too far. Wealth inequity and experiences of poverty are very visceral. We are talking about seniors opting out of using medications because they need to cover their rent. More and more people sleeping outdoors with no way to feel safe. It's very real. Housing is healthcare. And housing saves lives. We cannot go on like this. https://lnkd.in/dD5PbEpn