The podcast delves into the stark contrast between the affordability of consumer goods and the escalating prices of housing in America. James Brown highlights that while technology and entertainment products have become cheaper and more accessible, the average age of first-time home buyers has surged to 38, reflecting a significant shift in the housing market. He points out that millennials face a dilemma: they can indulge in various gadgets, yet the dream of home ownership seems increasingly out of reach. The discussion touches on the need for more housing options, emphasizing that many existing homes are in disrepair and costly to fix. Ultimately, Brown poses a thought-provoking question about the trade-offs society has made: would we prefer cheaper consumer goods or affordable housing?

Takeaways:

• The American dream of home ownership is becoming increasingly unattainable for younger generations.
• While gadgets and technology become cheaper, housing prices have surged significantly in recent years.
• Millennials are experiencing delayed home ownership due to cultural and economic factors affecting their finances.
• The average age of first-time home buyers has risen dramatically, reflecting broader societal issues.
• There is a pressing need for more affordable housing options in various cities across America.
• The competition from cash buyers is making it even harder for qualified buyers to secure homes.

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.