MOODYS: How To Fix The Housing Crisis
Published: 2024-10-04
Status:
Available
|
Analyzed
Published: 2024-10-04
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The market needs an increase in the construction of non-luxury, affordable homes.
"we need more supply of affordable homes in our market today which means we need more people building homes especially homes that are not necessarily luxury homes"
Pending
Builder sentiment is increasing due to falling interest rates.
"now that interest rates have begun to fall we have seen a rise in Builder sentiment across the country"
Pending
Upcoming election candidates are proposing incentives for home builders and grants for potential homebuyers to address the housing market.
"we have two political candidates both of them who are talking about how they can incentivize a solution to the housing market where we might see more incentives for Builders we might see more grants to home potential buyers"
Pending
The US government is projected to have a $2 trillion deficit in its upcoming spending, with total spending at $6.5 trillion.
"the United States government is on track to spend about $6.5 trillion which is about $2 trillion more than what the government is going to bring in from taxes"
Pending
The housing market requires an increase in the supply of affordable homes, necessitating more construction of non-luxury housing.
"we need more supply of affordable homes in our market today which means we need more people building homes especially homes that are not necessarily luxury homes"
Pending
There is a possibility of increased incentives for home builders and grants for potential home buyers in the housing market.
"we might see more incentives for Builders we might see more grants to home potential buyers"
Pending
The US government is projected to have a deficit of approximately $2 trillion in the current fiscal year, with total spending around $6.5 trillion.
"the United States government is on track to spend about $6.5 trillion which is about $2 trillion more than what the government is going to bring in from taxes"
Pending
Moody believes that simply cutting interest rates will not solve the housing market issues; increased construction is necessary.
"Moody says that cutting interest rates is not going to save the housing market you have to quote build baby build"
Pending
Over the past 25 years, the construction of luxury apartments (Class A) has increased by 18%, leading to a deficit in affordable housing construction.
"in the last 25 years the share of Class A multif family units that's upscale and luxury apartments Rose 18% which makes up just more than half of the multif family sector why does that matter because that means we're building more luxury housing and less affordable housing"
Pending
The construction of mid-tier (Class B) and older/lower-rent (Class C) multi-family units has decreased by 18% due to developers focusing on higher-rent properties.
"the share of Class B and C multif family units have fallen by 18% as developers have been prioritizing buildings that command higher rents"
Pending
Median rent in the US increased by approximately 59% from $1,100 in 2019 to $1,750 in 2024.
"in 2019 the median rent in America was $1,100... in 2024 the median rental price across the country is $1,750 which is an increase of around 59%"
Pending
Median home prices in the US increased by about 65% from $258,000 in 2019 to $426,000 in 2024.
"in 2019 the median price of a home sold was $258,000... in 2024 the median home in America is now $426,000 which is an increase of about 65%"
Pending
Median household income in the US increased by approximately 29% from $68,700 in 2019 to $88,600 in 2024.
"in 2019 the median household income was $68,700... in 2024 the median household income in America has jumped up to $88,600 which is an increase of around 7 177%"
Pending
In 2019, a 4% mortgage on the median home price of $258,000 would result in a monthly payment of $1,232.
"in 2019 the average 30-year fixed rate mortgage was right around 4% interest... if you got that 4% mortgage and you borrow $258,000 your mortgage payment would have been $1,232 a month"
Pending
In early 2024, an 8% mortgage on the median home price of $426,000 would result in a monthly payment of $3,126.
"in the beginning part of 2024 the average 30-year fixed rate mortgage was around 8% a year so now if you went out and you financed 100% of this house $426,000 at 8% that means that now your monthly payment on this average home would be 3,100 and $26 a month"
Pending
At the time of recording, a 6% mortgage on the median home price of $426,000 would result in a monthly payment of $2,554.
"at the time of me recording this video you can get that 30-year fix rate mortgage closer to 6% so if you borrow the same $426,000 at 6% now you're paying $2,554 a month"
Pending
Builder sentiment has increased as interest rates have started to decline.
"now that interest rates have begun to fall we have seen a rise in Builder sentiment across the country"
Pending
The November election is significant as candidates are proposing incentives for builders and grants for potential homebuyers to address the housing market.
"what's happening in November the election is important because we have two political candidates both of them who are talking about how they can incentivize a solution to the housing market where we might see more incentives for Builders we might see more grants to home potential buyers"
Pending
The US government is projected to spend $6.5 trillion, exceeding tax revenue by $2 trillion.
"the United States government is on track to spend about $6.5 trillion which is about $2 trillion more than what the government is going to bring in from taxes"
Pending