Housing Prices Are PLUMMETING In These States

Housing prices seem to be falling in certain parts of the country despite the sharp rise in housing unaffordability in America overall. Now, Fast Company notes that in some parts of the country, home prices have experienced either a plateau or an outright decline. And so where are we talking about and why is this happening? So in their piece, Lance Lambert writes that in October, US homebuilders reported having 113,000 unsold new homes while this is still below the 2007 peak of 117,000. It's above the pre-pandemic October 2019 level of 77,000 and marks the highest level since 2009. That's actually shocking. Now look, this is complicated because obviously people want to live where the jobs are. And so it might not be helpful for you to find out that housing prices have started to decline in these parts of the country. But it is interesting to see that when you build more supply, prices start to come down, right? So it's kind of a case study here. Now, Florida was a hot market during the coronavirus pandemic, but the market has cooled since then. However, because there was a lot of demand in Florida, developers started building, building, building. And then when people moving to Florida slowed down, all of a sudden developers are like, we've got this inventory of houses and now they're desperate to sell them. And so here's what they found. This is according to Nick Gurley, who is a housing analyst. He told Fast Company, Florida is getting hit by three main headwinds entering 2025. A slowdown in inbound migration, excess supply hitting the market from home builders, and an affordability crisis for existing homeowners related to HOA and insurance costs. The combination of these factors is pushing more inventory onto the market. So more people are actually selling in Florida as well because the insurance costs have become so high. So there is more inventory that's making the prices come down. He says, I wouldn't be surprised if home values in certain markets in Florida drop by as much as 10% next year. Cities such as Tampa, St. Petersburg, Sarasota, Punta Gorda, and Naples are most in the crosshairs of the slowdown. Yeah, so look, part of this is obvious. Supply and demand are not negotiable. It's just a fact of life. And so when you have more supply, the prices come down. That's just easy to understand, and that's definitely what's happening here. I'm going to do a little needless ha ha. So all the folks who are like everybody's moving to Florida, California sucks. Don't be salty because I- Okay, no, no, it's not you. He's salty because I thought about it. No, no, no, no, you didn't go. You didn't go. Okay, no, it was a lot of folks, including right wingers, who were like, California's dead, man, everybody's going to Florida. Okay, well, what happened now? A lot of people went to Florida and Texas and realized, weather. Okay, that's kind of a factor. Florida's weather, with the exception of hurricanes, obviously, right, is totally delightful. You usually go in the winter. No, no, no, I go in the summer. It's even delightful. I go in the summer. I go almost every summer for like a little family trip. And look, I get it. People don't like humidity, but it does wonders for the skin and hair. Yeah, okay, well, it doesn't do wonders if you like to sweat. Anyways, or if you're prone to it. Okay, so but overall, look, there are things we can do to fix things because we get so drowned in pessimism these days because, and this is not something the government did or politicians did. It was just the market that naturally took care of this or went in this direction. But it does go to show you that if whether it's the market or the government, when we take actions that make a difference, well, it can actually get things under control. So along those lines, if the government were to say private equity cannot buy homes anymore, well, that would also affect demand, which would affect prices, right? And that would also help to bring prices down. And private equity buying residential homes has zero value in this country, none. It is massively counterproductive because it takes the wealth that we can create in our homes and moves it over to Wall Street. So if the government takes that action, which by the way, the left wing populace and the right wing populace are in favor of, it could actually help tremendously with housing prices, and we should all demand that they do that. And by the way, Florida and Texas have restricted foreign investment into residential real estate, which I think is helping as well, although this report didn't get into it. And Texas is the other place where you're starting to see housing prices dip. So housing markets like Austin and San Antonio have been experiencing falling home prices, and even Dallas has cooled recently. And so homebuilders permitted a massive pipeline of new homes and apartments, which started to hit the market in 2024 and will continue in 2025. The result is higher inventory and declining prices. And so that is a great trend. Again, a case study for what a fix, a potential fix, for this housing crisis could be. We do need to build more houses. Any talk of government subsidies to help subsidize first-time home buyers, that's not going to solve the problem, because that's just introducing more capital to an already restrained market. And we need more inventory. It's that simple. So we'll see if more homes get built, but I'll leave you with this. Austin, according to Nick Gurley, will be the first market to bottom. Prices are already down 20% from the peak, and according to Reventure Apps data, they're now only 12% overvalued. So prices are going to continue to drop in Austin, based on this prediction. So by the way, it's a double-edged sword, because on the one hand, people can afford homes now. That's great news. But if you own a home in those areas, I obviously get that that's going to reduce the value of your home, too, and you're hard hit by it. So it's a balancing act, but right now, all across the country, and even still in Austin, that's taking this big hit. The housing prices are still overvalued. And it's because of the other factors that we're talking about, like private equity and people from outside the country buying homes and not even living in them. So all that, all you got to do is click that join button right underneath the video. Thank you.