The podcast delves into the troubling disparity between the affordability of consumer goods and the escalating costs of housing, a phenomenon highlighted by James Brown. He reflects on a poignant remark from Crystal Ball, noting that while people can easily acquire cheap gadgets, the dream of homeownership is slipping further out of reach. With the median home price soaring by 47% since 2019 and the average age of first-time home buyers now at 38, Brown underscores a generational shift in the ability to buy homes. This episode explores the implications of this trend, pointing to cultural and societal consequences that accompany delayed home buying. Brown concludes by questioning what society truly values: a plethora of inexpensive items or access to affordable housing, inviting listeners to engage in this critical discussion.

Exploring solutions to the housing crisis, James Brown emphasizes the urgent need for more housing options across the country. He points out that while some cities are in dire need of new homes, others are littered with dilapidated properties that require significant investment to restore—an investment that often feels insurmountable for first-time buyers. His call for action resonates with a sense of urgency and realism, as he acknowledges the systemic barriers facing potential homeowners in the current market. The episode culminates in a thought-provoking dialogue about the trade-offs society has made: cheaper consumer goods versus affordable housing. Listeners are encouraged to engage with this critical issue, considering what sacrifices they are willing to make for a tangible stake in their futures. James's reflections challenge us to reassess our priorities and the structures that dictate our financial landscapes, leaving us with a lingering question: what kind of future do we want to build?

Takeaways:

• The American dream of home ownership is becoming increasingly unattainable for younger generations.
• While gadgets and technology are cheaper than ever, housing prices have skyrocketed by 47% since 2019.
• Millennials are now buying homes at a much older average age than previous generations.
• The increasing presence of cash buyers in the housing market complicates the situation for mortgage applicants.
• In cities with ample housing, many homes are in disrepair, making them unaffordable to fix.
• The trade-off between cheaper consumer goods and affordable housing raises important societal questions.

Companies mentioned in this episode:

• Facebook

The not so Great American Bargain this is commentary from James Brown.

I can't stop thinking about something that Crystal Ball said on Breaking Points recently.

That's the bargain we've been given, she said.

You can afford lots of cheap stuff, but not to buy a house.

Flat screen TVs are basically giving themselves away these days.

Your phone is more powerful and cheaper than ever.

Facebook is literally selling AI goggles.

But housing?

That's a different story.

But here's the gut punch.

That's a record high up from 49 last, according to the national association of Realtors.

Any guess how old first time buyers are these days?

Try 38 years old.

Let that sink in.

Your parents probably bought their first home in their late 20s.

Their generation could afford less stuff.

But buy a house on one income.

We, on the other hand, can have all the gadgets we want.

But the American dream of home ownership?

That's getting further away by the day.

Now this all makes some sense.

My generation, millennials to be precise, have been in arrested development.

I'm guilty of this.

We're wasting money like it's no one's business.

We're settling down and having families later.

So naturally home buying would come later too.

But as I've said time and time again, in this space, there are consequences for that cultural, societal and political consequen that thankfully, will keep me writing for years to come.

So how do we solve this?

Well, that's complicated.

But here's one move.

We need more options.

In some cities, we desperately need more houses.

In others, like Detroit or Cleveland or my hometown, Rochester, New York.

We have plenty of houses, but they're just falling apart.

Fixing them costs a fortune, and that's if you can find someone to do the work.

Plus, all cash buyers are a huge problem.

Even if you qualify for a loan, if your competitor offers a giant wad of cash, sorry, you're not getting a house.

Makes you wonder, is this really progress?

When did we agree to this trade off?

What do you think?

What would you rather have?

Cheaper stuff or affordable housing?

Share your thoughts in the comments at jamesbrowntv substack.

Com.

On that note, I'm James Brown and as always, be well.