CHARLES: ABC, ALWAYS BE CLOSING.
I WANT TO TALK ABOUT THE
BREAKING HOUSING MARKET MOMENTS
AGO.
LOOK WHO WE HAVE WITH US.
THE PRESIDENT OF THE NATIONAL
ASSOCIATION OF HOME BUILDERS.
SORT OF UNCHANGED FROM WHERE IT
WAS IN FEBRUARY.
YOU FEEL LIKE MAYBE THE INDUSTRY
IS STARTING TO REBOUND HERE A
LITTLE BIT.
>> I THINK THERE'S CAUTION RIGHT
NOW.
WE ALWAYS START TO GET BETTER AS
THE BUILDING SEASON APPROACHES.
WE STILL HAVE ISSUES WITH LABOR
SUPPLY AN ISSUE AT THE COST OF
BUILDING MATERIALS AND JUST AS
IMPORTANTLY RIGHT NOW WORSE
TURNING TO PICK UP THAT SOME OF
THE BANKS ARE GETTING A LITTLE
MORE TIGHT WHEN IT COMES TO
ACQUISITION DEVELOPMENT AND
CONSTRUCTION LUNGING.
TRAIN TO YOUR REPORT WAS ONE OF
THE FIRST THAT INDICATED THE
RETURN OF ANIMALS SPIRITS.
MORE RECENTLY IT'S COME BACK
UNDER 50.
WHAT'S GOING ON WITH THE
CONSUMER, WITH THE POTENTIAL
HOME BUYER?
>> HOUSING AFFORDABILITY.
SIX YEARS AGO IT OUT OF 10 HOMES
ON THE MARKET WITH THE AVERAGE
BUYER DOWN TO 50%.
HOUSING AFFORDABILITY IS AT THE
LOWEST IT'S BEEN IN 10 YEARS AND
IT'S ATTRIBUTABLE DIRECTLY TO
WHAT I JUST MENTIONED.
LABOR, MATERIALS.
>> WHAT ABOUT THE STARTER HOME?
>> AT DIFFICULT FOR A BUILDER TO
BE ABLE TO COMPLY WITH THE COST
OF REGULATION.
IN SOME PARTS OF THE COUNTRY
REGULATION AS MUCH AS 40% OF THE
COST OF THE ACTION.
>> I WAS GOING TO GO IN
REGULATION.
ESPECIALLY STATES LIKE
CALIFORNIA.
>> SAN DIEGO COUNTY AT 40%.
IS THAT A REASON WHY WERE NOT AS
MOBLEY NATION AS WE USED TO BE?
50% MOBILITY FROM THE 1990s.
AFFORDABILITY.
>> I THINK THAT IS CERTAINLY ONE
OF THE COMPONENTS TO IT.
YOU HAVE YOUR HOME AND CAR
FINANCE.
HE CAN AFFORD TO MOVE OUT.
CHARLES: JERRY STAY RIGHT THERE.
SENATOR ELIZABETH WARREN.
>> IT'S NOT GOING TO BE CHEAP.
THE HOUSING PLAN IS JUST NOT
ENOUGH HOUSING BOTH ON THE
PURCHASING SIDE AND ALSO THE
RANTING SIDE BECAUSE OF THE LACK
OF BOTH AREAS PRICES ARE GOING
NOT.
HER IDEA IS TO TAX THE WEALTHY.
BUT THE ULTRA- WEALTHY PAY FOR
MASSIVE INVESTMENT TO BUY THEIR
FIRST TERM.
THEY DO THIS AT THE ESTATE
TAXES.
PEOPLE MAY PAY TAXES ON
22 MILLION ARRIVE.
I BRING THAT SPECIAL DOWN TO
7 MILLION.
IT WAS AT THAT WHEN GEORGE W.
BUSH LEFT OFFICE AND THEN RAISE
TAXES ABOVE THE THRESHOLD FROM
THEREON.
SHE SAYS BASICALLY BY ASKING
14,000 WEALTHY FAMILIES A YEAR
TO PAY JUST A BIT MORE, WE CAN
REDUCE RENTS BY 10% FOR MILLIONS
OF FAMILIES AND ALSO CREATE
1.5 MILLION NEW JOBS.
13,000 WEALTHY FAMILIES TO PAY.
CHARLES: I DON'T KNOW ABOUT YOU
BUT IT REMINDS ME OF THE OLD
VOODOO ECONOMICS.
>> I AGREE WITH SENATOR WARREN.
WE NEED TO BUILD MORE HOUSES BUT
THE WAY TO DO IT IS REDUCE
REGULATIONS AND FORGET THE
PRIVATE SECTOR TO DO WHAT WE DO
BEST.
THE COST OF THIS BILL IS SO
INCREDIBLY HIGH.
I JUST CAN'T BEAT GETTING
THROUGH.
I'VE GOT TO TELL YOU,
REPRESENTING SMALL BUSINESSES.
I HAVE A FUNDAMENTAL PROBLEM
WITH THE ESTATE TAX ANYWAY.
MOST OF OUR MEMBERS ARE
FAMILY-OWNED BUSINESSES.
CHARLES: A LOT OF TIMES IT THE
FIRST TIME SOMEONE IN A
GENERATION NEVER MADE ENOUGH
MONEY AND YOU PUNISH THEM BY
TAKING IT AWAY.
YOU SAVE MILLENNIAL STAR READY
TO GO.
YOU NEED TO TALK -- ELIZABETH
WARREN, HOW MUCH GOVERNMENT
INVOLVEMENT SHOULD THERE BE.
>> I WAS READING A STATISTIC
THAT FAMILIES ARE SPENDING OVER
30% OF THEIR INCOME ON RENT.
THAT IS AN INSANE STATISTIC.
WHAT ABOUT SAVINGS?
WHAT ABOUT SPENDING ON OTHER
THINGS?
CHARLES: PEOPLE WANT TO LIVE IN
MANHATTAN YOU GOT TO SPEND A LOT
OF MONEY ON RENT.
>> RIGHT.
I DON'T KNOW IF THERE'S ANY PLAN
THAT'S GOING TO MAKE SENSE.
YOU HAVE TO FIND THE MONEY FROM
SOMEONE FROM SOMEWHERE TO MAKE
THIS ALL WORK.
BUT IT IS JUST NOT TO ME THAT
WERE SUPPOSED TO BE THE LAND OF
OPPORTUNITY AND PEOPLE CAN EVEN
AFFORD TO BE ABLE TO LIVE HERE.
IT IS JUST CRAZY TO ME.
CHARLES: STEVE, YOUR THOUGHTS ON
THIS.
>> THE KEY THING IS REGULATION.
RENT CONTROL MAKE THESE THINGS
UNNECESSARILY EXPENSIVE.
TO FIND ALL SORTS OF HOUSING AND
NO REASON WHY WE CAN'T DO IT IN
HOUSING.
SENATOR WARREN CONFUSES ASSETS
WITH CASH.
HE PUT A TAX ON AN ASSET IT GOES
DOWN IN VALUE.
SHE HASN'T LEARNED THAT YET.
CHARLES: THE MILLENNIAL THOUGHT