EXPECTED TO FACE A JUDGE LATER TODAY. IT’S NOW TIME THE WEEKLY WITH NEWS 6 MORNING
ANCHOR JUSTIN WARMOTH.
>> THIS IS THE WEEKLY ON
CLICK, ORLANDO DOT COM WITH
JUSTIN WARMOTH.
>> GOOD MORNING. I’M JUSTIN
WARMOTH. LAST WEEK WE TOLD YOU
ABOUT THE LACK OF AFFORDABLE
HOUSING IN CENTRAL FLORIDA
PROBLEM THAT’S GETTING WORSE.
NOT BETTER AT A TIME WHEN
EVERYTHING IS MORE EXPENSIVE.
OUR FOCUS THIS MORNING SKY
HIGH RENT PRICES SPOKE WITH
BRIAN CARBERRY FERMENT PAT DOT
COM ABOUT WHAT’S CAUSING
PRICES TO SPIKE OVER THE LAST
FEW MONTHS.
PRICES TO SPIKE OVER THE LAST
FEW MONTHS. At JP Morgan, >> SO REMEMBER, SAYS REALLY
ARE UP EVERYWHERE ACROSS THE
COUNTRY. I MEAN, THERE ARE
CERTAIN MARKET CERTAIN AREAS
WHERE PRICES ARE PRICED. IT’S
MUCH YOU MIGHT ACTUALLY BE
DECREASING. BUT BY AND LARGE,
REALLY EVERYWHERE YOU LOOK,
YOU ARE SEEING JUST HIGH
DEMAND FOR APARTMENTS AND THAT
IS REALLY DRIVING THE INCREASE
AND RATING RIGHT COSTS.
THERE’S JUST A LOT OF PEOPLE
ON THE MARKET RIGHT NOW THAT
ARE LOOKING FOR A NEW PLACE TO
LIVE. AND THERE’S NOT A LOT OF
AVAILABLE INVENTORY. OCCUPANCY
RATES NEAR ALL-TIME HIGH WHEN
THERE’S JUST MORE PEOPLE, AS I
SAID, JUST LOOKING RIGHT NOW
TO FIND A NEW PLACE TO LIVE
THAT REALLY LOOKING TO MOVE IN
THE BEGINNING. PART OF THE
PANDEMIC. SO REALLY WE POINT
TO THAT SUPPLY AND DEMAND IS
THAT MAIN FACTOR. OF COURSE,
THERE’S GOING TO BE CERTAIN
MICRO LEVEL TRENDS THAT WE’RE
SEEING. AND, YOU KNOW, ONE
MARKET COMPARED TO ANOTHER
THAT BY DRIVING RIGHT PRICE
INCREASES IN ONE AREA OVER
ANOTHER. BUT IT REALLY JUST
DOES BOIL DOWN TO JUST THIS
HIGH DEMAND AND NOT A LOT OF
INVENTORY ON THE MARKET.
>> YEAH, ORLANDO AND THE STATE
OF FLORIDA REALLY THAT DEMAND
GROWTH SPECIALLY OUT OVER THE
LAST 2 YEARS, REALLY SINCE THE
PANDEMIC STARTED. BUT I’M
CURIOUS, JUST FITS. IS IT MORE
OF THE HIKE? WHEN IT COMES TO
CURIOUS, JUST FITS. IS IT MORE
OF THE HIKE? WHEN IT COMES TO At JP Morgan, APARTMENTS OR HOW’S IT RENTAL
HOUSING AND THINGS LIKE THAT?
IS THAT ALSO ON THE SAME DIGS
LIKE TRAJECTORY OR THE SAME
RATE HIKE IN THE LAST YEAR?
>> RIGHT. REALLY DOES DEPEND
ON WHERE YOU’RE LOOKING AND
REALLY WHAT TORIES LIKE.
THERE’S JUST GOING TO BE
CERTAIN AREAS. AND LET’S JUST
STICK WITH NEW YORK CITY, FOR
EXAMPLE, NOT GOING TO HAVE A
LOT OF RENTAL HOMES IN THE
MARKET. THEY’RE GOING TO BE
LOOKING AT APARTMENTS WHEN YOU
MAY LOOK AND THE CITY LIKE
ORLANDO, WHERE YOU MIGHT HAVE
MAKE SURE GOT APARTMENTS AND
YOU GET INTO MORE DOWNTOWN
AREAS. BUT IN SOME OF THE
OUTER NEIGHBORHOODS, YOU MAY
HAVE MORE RENTAL HOMES. AND IT
REALLY JUST IS WHAT IS ON THE
MARKET AT THE TIME. THERE WAS
A BIG PUSH DURING THE PANDEMIC
FOR PEOPLE TO TRY TO FIND MORE
SPACE TO GET OUT OF THE
DOWNTOWN AREAS. IT’S NOT FUN
LIVE IN A STUDIO APARTMENT. IF
YOU’RE WORKING FROM HOME AND
YOU HAVE TO WORK IN YOUR
BEDROOM REALLY HAVE NO PLACE
TO GO. SO A LOT OF PEOPLE WERE
LOOKING FOR A LARGER
APARTMENTS TO 3 BEDROOM UNITS
OR WE’RE LOOKING FOR RENTAL
HOMES TO KIND OF GET THAT MORE
SPACE. GOT THAT MORE PRIVACY.
SO THERE IS THAT DEMAND FOR
THAT BIGGER SPACE. FOR THE
PRIVACY FOR RENTAL HOME, I
WOULDN’T REALLY SAY THAT ONE
IS RISING OVER THE OTHER. JUST
DEMAND IS SO HIGH, REALLY FOR
ALL TYPES OF RENTAL PROPERTIES
THAT YOU CAN EXPECT TO PRICE
INCREASES PRETTY MUCH
REGARDLESS OF WHAT SIDE
LOOKING FOR.
>> YOU KNOW, I THINK IT’S
IMPORTANT PRICES DO GRADUALLY
GO UP YEAR OVER YEAR. I THINK
AS WE’VE SEEN WITH GAS PRICES,
FOR INSTANCE, IT’S THE RATE AT
WHICH THE INCREASES OCCURRED
THAT IS REALLY LET LEAVING
FOLKS IN THE AND THE IN A
PLACE WHERE THEY HAVE TO
REASSESS WHETHER OR NOT THEY
CAN STAY THERE, WHETHER OR NOT
ESPECIALLY IF THEY DON’T WORK
FROM HOME. AND THEIR JOB IS
CLOSE BY. AND THAT COMMUTE
STARTS TO FACTOR IN BECAUSE
THEY HAVE TO MOVE FARTHER AWAY
FROM THE CITY IN WHICH THEY
WORK, WHICH IS A WHOLE NOTHER
FACTOR IN THIS. AND THAT’S
WHAT I THINK IT IS WORRYING A
LOT OF PEOPLE. CAN. YOU A
TOUCH MORE ON THAT.
>> YEAH, THAT’S A REALLY GOOD
POINT. AND DURING THE
PANDEMIC, A LOT OF PEOPLE DID
HAVE THAT ABILITY THAT THEY
EITHER WORK FROM HOME OR ARE
ABLE TO MOVE TO PLACES, YOU
KNOW, JUST KIND OF TAKE A YEAR
AND WITH REMOTELY AND WORK
REMOTELY AND NOW HAS A LOT OF
OFFICES ARE BEGINNING TO ASK
PEOPLE TO COME BACK TO WORK.
WE ARE SEEING KIND OF THAT
SHIFT IN WHAT RENTERS ARE
LOOKING FOR. AND EVERY RENTER
IS GOING TO HAVE THEIR OWN SET
OF PRIORITIES. WHAT’S
IMPORTANT TO THEM AND LOCATION
ALWAYS IS GOING TO BE A MAIN
FACTOR. BUT IT’S A LOCATION TO
WATCH. THAT IS REALLY KIND OF
CHANGING RIGHT NOW BEFORE IT
MIGHT HAVE BEEN LOCATION TO
WORK. NOW, IT MIGHT BE
LOCATION TO OTHER THINGS THAT
THEY SHUN TO OUTSIDE SPACES
ARE NOT HAVING TO DEAL WITH,
YOU KNOW, A BIG COMMUTER OR
WHATEVER IT MIGHT BE. SO, YES,
YOU ARE SEEING A LOT OF PEOPLE
ARE STARTING TO CONSIDER LIKE
OKAY, CAN I STILL LIVE WHERE
I’M LIVING BECAUSE PRICES ARE
GOING UP? YES, I AM CLOSE TO
WORK, BUT DO I REALLY NEED TO
BE CLOSE TO WORK ANYMORE OR
KIND OF VICE VERSA? AS WE WERE
TRYING TO MOVE BACK CLOSE TO
WHERE THEIR WORK IS AND ARE
REALIZING THESE PRICES ARE
GOING UP. SO IT REALLY IS UP
TO EVERY INDIVIDUAL ENTERED
THE KIND OF PRIORITIZING LOOK
AT WHAT THEIR WANTS AND THEIR
NEEDS ARE AND DETERMINE, OK,
IS THIS LOCATION A BIG FACTOR
IN WHERE I NEED TO LIVE OR CAN
I 5.10, MILES AWAY, HAVE THE
SAME QUALITY OF LIFE, MAYBE A
LITTLE BIT MORE AFFORDABLE.
BUT YOU KIND OF HIT ON THE GAS
PRICES. AND, YOU KNOW,
HOPEFULLY THESE PRICES ARE
SKYROCKETING. YOU KNOW, BOTH
RENT GAS PRICES ARE
SKYROCKETING FOR LONG. BUT IF
YOU DO MOVE FURTHER AWAY,
THERE ARE OTHER COSTS THAT ARE
GOING TO BE ASSOCIATED WITH
THAT PLACE THAT YOU DO CHOOSE
TO SETTLE DOWN. AND THERE’S A
LOT OF DIFFERENT FACTORS THAT
RENTERS ARE GOING. YOU KEEP IN
MIND, HAS IT REALLY JUST
TRYING TO FIND WHERE THE NEXT
PLACE TO LIVE IS OR IF THEY
DECIDE TO STAY WARM SOMEWHERE
ELSE.
>> WE DO KNOW GAS PRICES GO
UP, GO BUT WHAT ABOUT RENT ARE
THOSE HERE TO STAY?
>> YEAH, IT’S ALREADY PRICES.
YOU KNOW, IF YOU LOOK BACK
TRADITIONALLY BEFORE THE
PANDEMIC BEGAN, PRICES TEND TO
GO UP IN THE SUMMER AND WILL
BE RELATIVELY FLAT IN THE FALL
WINTER AND SPRING. AND THAT’S
JUST BECAUSE OVER THE SUMMER,
HE’S ONE OF OSE PEOPLE ARE
LOOKING FOR A PARK. KIDS ARE
OUT OF SCHOOL, WHICH IS EASY
TIME FOR PEOPLE TO RELOCATE.
AND THIS IS A TREND THAT WE
KIND OF DO EXPECT THIS TO
CONTINUE WHEN THE PANDEMIC
BEGAN, PRICES STAYED PRETTY
MUCH FLAT FOR ABOUT 9 MONTHS.
THAT WHOLE TWENTY-TWENTY
PRICES REALLY DIDN’T DO
ANYTHING NATIONALLY. AT LEAST
ARE GOING HAVE CERTAIN MARKETS
AGAIN, EVERY MARKETS IN THE
KIND OF REACTING DIFFERENTLY,
SOME PLACES BUT NOT SOMEPLACE
RIGHT DOWN PLACES LIKE NEW
YORK CITY, SAN FRANCISCO
PURSES, DRASTICALLY DECREASED
AS PEOPLE WERE LEAVING A HACK
AND LEAVING DOWNTOWN AREAS
JUST BECAUSE AGAIN, EVERYTHING
WAS SHUT DOWN AND NOTHING TO
DO. THERE WAS NO POINT
STAYING. THERE REALLY WASN’T
THAT HIM AND SOME OF THOSE
AREAS IN 2021, WE START TO SEE
PEOPLE LOOKING TO MOVE AGAIN.
KIND OF FIGURING OUT WHAT’S
GOING ON WITH THE WORLD AND
GOING ON WITH THEIR HOUSING
SITUATION. AND IT REALLY WAS
THE SUMMER OF 2021 THAT WE
STARTED TO SEE PEOPLE BE
WILLING TO MOVE TO LOOK TO A
NEW PLACE TO LIVE. AND THAT’S
WHEN THESE PRICES REALLY
STARTED TO SKYROCKET. AND THAT
WAS BECAUSE YOU KIND OF SAW 2
YEARS WORTH OF INCREASES
HAPPENING ALL AT ONCE. SO WHEN
WE SEE THESE RENT PRICES THAT
ARE UP NATIONALLY RIGHT NOW,
20% OR ONE BEDROOM, 20%, 13
BEDROOM. IT’S BECAUSE WE’RE
LOOKING AT A TIME PERIOD. WHEN
PRICES GONE UP, THEY STAYED
RELATIVELY FLAT AS WE GET INTO
THE SUMMER MONTHS. I DO EXPECT
ARE GOING TO CONTINUE TO RIGHT
PRICES GOING UP. BUT THAT RATE
OF INCREASE MAY NOT APPEAR TO
BE AS SIGNIFICANT AS SOME YOUR
BECAUSE IT’S GOT LOOKING AT
AGAINST A TIME WHEN PRICES
HAVE ALREADY JUMPED. SO YES,
PRICES ARE STILL GOING TO GO
UP. IT’S STILL GOING TO
DIFFICULT FOR PEOPLE TO AFFORD
TO PAY IN CERTAIN INSTANCES.
YOU KNOW, IF THEY HAVE A
COUPLE $100 INCREASING THE
MONTHLY RENT THAT’S NOT PLAN
FOR THAT IS THAT IS A
CHALLENGE FOR A LOT OF PEOPLE.
BUT IT KIND OF IS ALL
RELATIVE. IF YOU KIND OF LOOK
AT, OK, WHAT WAS IT LIKE THIS
TIME LAST YEAR? IT’S NOT GOING
TO SEE MUCH BAD, BUT IT IS
STILL GOING TO BE A RED PRICE
INCREASE AND A LOT OF AREAS I
DO EXPECT.
>> SO WHAT YOU’RE SAYING IS
ESSENTIALLY THAT. THESE PRICES
WILL LEVEL UP TO. BUT THE NORM
IS JUST ORGANICALLY OVER TIME.
AND I THINK THAT LEADS INTO MY
NEXT QUESTION BECAUSE I THINK
SOME PEOPLE ARE THEY MIGHT BE
LOOKING FOR SOMETHING RIGHT
NOW. THEY THEY SEE THE PRICE.
WHAT IT IS. AND THEY WOULD
LIKE TO TRY TO STAY AROUND
THAT SAME LEVEL. AND MAYBE
THEY’RE THINKING MAYBE SHOULD
SHY SIGNED A 2 YEAR LEASE
AGREEMENT. IS THAT SOMETHING
THAT THAT THEY SHOULD
CONSIDER?
>> YOU KNOW, IS SOMETHING THAT
YOU SHOULD CONSIDER LANDLORDS
MAY BE MORE WILLING TO LOCK IN
YOUR RATE. AT MORE MORE ALONG
THE LINES WHERE YOU ARE RIGHT
NOW, IF YOU ARE WILLING TO
STAY A LITTLE BIT LONGER
BECAUSE THEN THAT MEANS THAT
THEY KNOW THAT YOU’RE GOING TO
BE THERE FOR 2 YEARS. THEY’RE
NOT GOING TO WORRY ABOUT
FINDING A NEW TENANT THE YEAR
DOWN THE ROAD. SHOULD YOU
LEAVE? LANDLORDS ARE YOU KNOW,
BOTTOM LINE IS THEY JUST WANT
THEIR THEIR UNITS BILL. THEY
DON’T WANT ANY VACANCIES
BECAUSE THAT’S HOW THEY GET
THEIR MONEY. IF THEY CAN
COLLECT THE RENT EVERY MONTH,
YOU KNOW, THEY ARE. IT IS A
BUSINESS THAT ARE GOING TO TRY
TO GET AS MUCH FOR THEIR
PROPERTY TO THEIR UNITS AS
THEY CAN. BUT THEY ARE GOING
TO BE WILLING TO WORK WITH
YOU, ESPECIALLY IF YOU’VE BEEN
THERE FOR A WHILE, YOU CAN GET
A GOOD TENANT HAVING HAVING
PROBLEMS WITH NEIGHBORS. YOU
ALWAYS PAY YOUR RENT ON TIME,
WHATEVER THE SITUATION MIGHT
BE. IF YOU’VE BEEN THAT IDEAL
TENANT THAT THEY’RE LOOKING
FOR, THEY ARE GOING TO BE MORE
LIKELY TO LISTEN TO BE MORE
LIKELY TO NEGOTIATE WITH YOU.
THE POWER REALLY IS WITH THE
LANDLORDS RIGHT NOW BECAUSE OF
THE WHOLE SUPPLY AND DEMAND
ISSUE LIKE THEY KNOW IF YOU
LEAVE, THERE WILL BE OTHER
PEOPLE THAT ARE GOING TO COME
AND WANT TO READ YOUR SO BE
WILLING TO WORK WITH THEM, BE
WILLING TO LISTEN TO THEM,
NEGOTIATE WITH THEM, YOU KNOW,
KIND OF COME IN WITH A COUPLE
DIFFERENT IDEAS OF WHAT YOU
MIGHT WANT TO DO.
DIFFERENT IDEAS OF WHAT YOU
MIGHT WANT TO DO. At JP Morgan, >> AND SOMETHING THE FED IS
CONSIDERING INCREASING
MORTGAGE RATES WILL DISCUSS
WHETHER THAT WILL HAVE AN
IMPACT ON THE RENTAL MARKET
>> THIS IS THE WEEKLY ON CLICK, ORLANDO DOT COM WITH JUSTIN WARMOTH. WELCOME BACK
WITH RECORD-BREAKING
INFLATION. EVERYTHING IS MORE
EXPENSIVE RIGHT NOW. RENT
PRICES.
>> ARE NO EXCEPTION. IN FACT,
THEY’RE ACTUALLY OUTPACING THE
INFLATION RATE AND MORE AND
MORE FOLKS ARE GETTING PRICED
OUT OF THEIR HOMES. BRIAN
CARBERRY FROM REDPATH DOT COM
IS BACK WITH US TO EXPLAIN
WHAT IT’S GOING TO TAKE FOR
THE RENTAL MARKET TO COOL OFF.
>> YOU KNOW, WE DO SEE A
THE RENTAL MARKET TO COOL OFF.
>> YOU KNOW, WE DO SEE A Greatness Lives Here. NUMBER OF NEW APARTMENTS GOING
UP HERE IN THE ORLANDO AREA
THROUGHOUT CENTRAL FLORIDA.
THEY’RE TAKING SHAPE THE NEED
IS IT HASN’T CAUGHT UP. BUT
BUT WE’RE SEEING THOSE NEW
APARTMENTS COMING IN. WHEN IT
WHEN IT COMES HISTORICALLY
SPEAKING. THOSE SHOULD SHOULD
SOMEONE MAYBE I BEING LIKE THE
FIRST TENANT OF THOSE
DEPARTMENTS AND TRY TO TAKE
ADVANTAGE, MAYBE GETTING IN ON
THE THE BASE RATE OR WHATEVER.
THEY’RE THEY’RE TRYING TO
ATTRACT IT THAT’S TACTIC THAT
THEY SHOULD USE.
>> I THINK IT THAT YEAR. THAT
IS ATTACKING THE CAN TRY IT.
YOU NEED TO BE A LITTLE BIT
MORE FLEXIBLE ON THAT MOVE IN
DAY BECAUSE YOU MAY HAVE TO
SIGN A LEASE REACH MONTHS
BEFORE YOU’RE ABLE TO MOVE IN
SOMEWHERE AND YOU KIND OF HAVE
TO FIGURE OUT WHAT YOU DO IN
THAT SHORT TERM. IT REALLY
DOES DEPEND ON EVERY SINGLE
MARKET. OBVIOUSLY YOU HAVE
CERTAIN NEIGHBORHOODS IN
ORLANDO THAT ARE GOING TO BE A
LOT HIGHER DEMAND THAT OTHER
NEIGHBORHOODS AND AT SOME
POINT THE MARKET IS GOING TO
GET KIND OF OVERSATURATED WITH
THESE NEWER PROPERTIES AND A
LOT OF THESE NEWER PROPERTIES.
YOU NEED TO KEEP IN MIND THAT,
YES, IT IS GOING TO ADD MORE
UNITS THAT ARE AVAILABLE. IT’S
GOING TO KIND OF DECREASE. YOU
KNOW, THAT DEMAND. BUT THESE
NEWER UNITS MORE THAN LIKELY
ARE GOING TO PRICE A LITTLE
BIT HIGHER BECAUSE THEY’RE
GOING TO BE IS PROPERTIES,
WHICH MORE OFTEN THAN NOT THE
SERIOUS, MORE UPDATED NEWER.
AND THEY’RE GOING TO BE PRICED
HIGHER THAN WHAT THE AVERAGE
IS ALREADY. SO WHEN YOU HAVE 2
MORE HIGHER PRICE UNITS COMING
ON THE MARKET, IT’S GOING TO
SLIDE THAT BECAUSE IT’S HIS TO
MOVE THAT CURVE. YES, SOME OF
THESE MAY BE MARCH IS MORE
AFFORDABLE HOUSING. AND, YOU
KNOW, HOPEFULLY THEY ARE AND
THAT WILL KIND OF HOPEFULLY
LEVEL THINGS OFF A LITTLE BIT.
BUT A LOT OF THE NEWER UNITS
THAT ARE COMING ON THE MARKET
ARE GOING TO BE MORE PRICE
EACH SO YOU REALLY JUST KIND
OF HAVE TO LOOK AND SEE LIKE,
IS IT WORTH THE PRICE THAT
THEY’RE OFFERING? AND IF THAT
PRICE GOES UP IS THEY WANT TO
GO INTO THE OTHER UNITS ARE ON
THE MARKET. ARE OTHER
PROPERTIES GOING TO BE WILLING
TO LOWER THEIR PRICE, TRY TO
COMPETE AGAINST THAT? YOU
KNOW, COULD LIKELY SEE GAS
STATIONS LIKE OPPOSING
CORNERS, KIND OF HAVING A
BATTLE AS THEY LOWER THEIR
PRICES, TOO, TRY TO ATTRACT AS
MANY CARS AS POSSIBLE. YOU MAY
SEE SOMETHING SIMILAR. YOU
HAVE, YOU KNOW, COUPLE
APARTMENT COMPLEXES ALL WITHIN
A YOU KNOW, I WOULDN’T SIT
HERE AND WAIT FOR THAT. I
WOULDN’T HOLD MY BREATH AND
HOPE THAT THAT’S AN OPTION
BECAUSE IT MAY NOT BE, BUT
IT’S JUST A LOT OF THINGS TO
KEEP IN MIND AS YOU ARE
LOOKING FOR A PROPERTY,
ESPECIALLY WHEN THERE ARE
NEWER PROPERTIES COMING ON THE
MARKET. AND AGAIN, IT REALLY
DOES BOIL DOWN TO EVERY
INDIVIDUAL RENTER ME SEE WHAT
IS RIGHT FOR THEM. WHAT THEY
FEEL COMFORTABLE DOING AND
WHAT MAKES SENSE FOR THEM AND
THAT IT WORKS. EVERYTHING
WORKS. YOU FEEL COMFORTABLE. I
WOULD ADVISE YOU KIND OF GO
WITH YOUR GUT. HE.
>> YOU KNOW, HOUSING
AFFORDABILITY VERSUS
AFFORDABLE 2 DIFFERENT THINGS.
OBVIOUSLY. AND SO WHAT WE’RE
AFFORDABLE 2 DIFFERENT THINGS.
OBVIOUSLY. AND SO WHAT WE’RE Greatness Lives Here. SEEING HERE IN THE CITY OF
ORLANDO REALLY ACROSS THE
STATE OF FLORIDA IS A CRITICAL
NEED FOR AFFORDABLE HOUSING
WHILE AT THE SAME TIME,
HOUSING AFFORDABILITY IS
BECOMING MORE OF A CONCERN
SIMULTANEOUSLY AND LISTEN, I I
KNOW THAT YOU’RE BASED IN
ATLANTA, FUN, NOT THE STEAK
AND BUT WHEN IT COMES DOWN TO
THIS IS REALLY A CRISIS OF
ACROSS THE IS THERE IS THERE
ANYTHING THAT YOUR SHOULD
HAPPEN TO ADDRESS AND THE BEST
REMEDIES THAT WHETHER IT’S ON
THE CITY, STATE OR FEDERAL
LEVEL CAN REALLY EASE THE
BURDEN FOR SO MANY FAMILIES
AND AN INCREASING NUMBER OF
FAMILIES ACROSS THE COUNTRY.
>> YEAH, IT’S A TOUGH
SITUATION RIGHT NOW. AND
AFFORDABLE HOUSING REALLY HAS
BEEN AN ISSUE FOR YEARS WAY
BEFORE THE PANDEMIC. WE’RE
TALKING ABOUT AFFORDABLE
HOUSING AND IT’S SOMETHING
THAT’S, YOU KNOW, CERTAIN
CERTAIN CITIES IN CERTAIN
AREAS ARE KIND OF STARTING TO
NOTICE AND TAKE A LITTLE BIT
MORE SERIOUSLY. AND IT REALLY
KIND OF DOES BOIL DOWN HAS TO
START KIND OF AT THAT CITY
LEVEL FOR PEOPLE TO RECOGNIZE
WHAT THE NEED IS. AND, YOU
KNOW, SEEING SOME OF THESE
LONG-TERM RESIDENTS BEING
FORCED OUT, AS YOU KNOW, NEWER
PROPERTIES, COME ON ARE YOU
KNOW, IF YOU’RE LOOKING AT A
RESIDENTIAL NEIGHBORHOOD WHERE
IT’S, YOU KNOW, HOLMES, YOU’RE
SEEING INVESTORS COME IN AND
BUY SOMETHING AND THEN EITHER
SELL OR RENT IT OUT AND KIND
OF FORCING OUT THESE LONGTIME
RESIDENTS. AND I THINK A LOT
OF CITIES ACROSS THE COUNTRY
ARE BEGINNING TO RECOGNIZE
THAT THIS IS A PROBLEM AND ARE
STARTING TO ENACT CERTAIN
LEGISLATION THAT THAT REQUIRES
A CERTAIN PERCENTAGE OF UNITS
THAT ARE BUILT TO BE MORE
AFFORDABLE. I THINK THAT’S A
GOOD BABY STEP. BUT I REALLY
DO THINK THAT THIS IS AN ISSUE
THAT ISN’T GOING AWAY ANYTIME
I DON’T HAVE AN ANSWER FOR
WHAT WHAT THAT SOLUTION NEEDS
TO BE. UNFORTUNATELY. I MEAN,
YOU KNOW, THE PEOPLE THAT MAKE
MORE MONEY THAN I DO, YOU KNOW
HOW PACIFIC LEVEL THAT’S
THAT’S UP TO THEM TO YOU KNOW,
I DO THINK THAT IF YOU ASK ANY
PERSON ON THE STREETS, THEY
WOULD AGREE THAT THIS IS AN
ISSUE THAT SOMETHING NEEDS TO
BE DONE. I HOPE THAT LAWMAKERS
ARE TAKING IT SERIOUSLY. AND I
DO THINK SOME ARE I DON’T
THINK ENOUGH ARE, BUT I DO
THINK SOME ARE AND THEY’RE
DEFINITELY CERTAIN CITIES
ACROSS THE COUNTRY WHERE YOU
ARE SEEING KIND OF MORE OF A
PUSH FOR IT. AND AGAIN, THAT’S
A GREAT START. BUT THAT MORE
NEEDS TO BE DONE ME ASK YOU
THIS. INCREASED INTEREST RATES
AND THOSE GOING UP.
>> WHETHER OR NOT THE FED DOES
THAT. HOW MUCH OF A FACTOR
THAT HAVE IF HOME PRICES START
TO LEVEL OFF A LITTLE BIT,
WOULD IT BE AN IMMEDIATE
IMPACT THAT THAT WE WOULD SEE
DOING THE SAME THING OR WOULD
THAT TAKE A LITTLE BIT LONGER
TO TO KIND OF KICK IN?
>> AND YOU’RE GOING TO SEE A
LITTLE BIT OF A DELAY. I MEAN,
THIS IS THE CLASSIC CHICKEN
AND THE EGG ARGUMENT LIKE WHAT
IS REALLY DRIVING THE OTHER. I
THINK WHEN YOU LOOK BACK OVER
THE PANDEMIC, YOU REALLY SOLVE
THE HOUSING MARKET START TO
TAKE OFF KIND OF AT THE OF
2020 BEGINNING OF 2021. WAS
WHEN PRICES JUST REALLY KIND
OF SKYROCKETED, IT’S MORE OR
LESS KIND OF LEVELED OFF
DEPENDING ON WHERE YOU LOOK.
AND IT REALLY WAS THE RENTAL
MARKET WAS ABOUT 6, 7, 8
MONTHS, KIND OF DELAY. BUT WE
SAW THE RENTAL MARKET KIND OF
SKYROCKET. I DO THINK, THOUGH,
AS THE HOUSING MARKET BEGINS
TO COOL IN INTEREST RATES DO
GO OFF AND THERE ARE FEWER
PEOPLE LOOKING TO BUY. IT’S
GOING TO KIND OF DECREASE THAT
COMPETITION IN THE HOUSING
MARKET AND PRICES THEN MAY
START TO KIND OF COOL OFF,
START TO COME DOWN AND THEN
YOU MAY SEE PEOPLE THAT WERE
RENTING THAT AWAITING. THINK
ABOUT HOME BUYING AGAIN. ONE
THING YOU DO HAVE TO CONSIDER,
THOUGH, IS THERE WERE A LOT OF
PEOPLE THAT WERE RENTERS THAT
WANTED TO BUY THAT WERE PRICED
OUT AND STILL ARE PRICED OUT
OR THEY’VE HAD FINANCIAL
DIFFICULTIES DURING THE
PANDEMIC AND SAY THEY HAD, YOU
KNOW, 20 GRAND, 30 GRAND,
WHATEVER IS SET ASIDE FOR A
DOWN PAYMENT ON THEIR HOME AND
THEY WERE LAID OFF FURLOUGHED
OR THEY HAD A MEDICAL ISSUE.
THEY HAD TO DIP INTO THAT NEST
EGG AND NOW THEY DON’T HAVE
THAT DOWN PAYMENT MONEY
ANYMORE AND THEY NEED TO WAIT
TO BUY. SO IT’S NOT GOING TO
BE KIND OF THAT MAGIC. NO
REMEDY THAT IS GOING TO
SUDDENLY SAY, OK, GREAT. THE
HOUSING MARKET HAS COOLED OFF.
NOW THE RENTAL MARKET IS GOING
TO DO THE SAME. THERE’S STILL
GOING TO BE A LOT OF FACTORS
AT PLAY. THERE ARE STILL GOING
TO BE A LOT OF RENTERS THAT
WANT TO BUY THAT ARE JUST
UNABLE TO DO SO, ESPECIALLY
WITH THE RENT COSTS GOING UP.
BUT THEY RENEW. AND SO THEY’RE
PAYING A COUPLE EXTRA $100
MONTH. THAT’S MORE MONEY THAT
THEY DON’T HAVE THAT ARE ABLE
TO SAY. SO JUST A LOT OF
THINGS THAT PLACE. I DO THINK
IF THE HOUSING MARKET DOES
COOL OFF, YOU MAY SEE THE
RENTAL MARKET BEGIN TO COOL
OFF AS WELL. IT’S GOING TO
TAKE SOME TIME, THOUGH. IT’S
NOT GOING TO BE IMMEDIATE
THAT.
NOT GOING TO BE IMMEDIATE
THAT. Greatness Lives Here. >> AND LAST WEEK’S EPISODE, WE
TOLD YOU ABOUT THE LACK OF
AFFORDABLE HOUSING IN CENTRAL
FLORIDA AND SOME OF THE STEPS
ADVOCATES ARE TAKING TO
IMPROVE THE ISSUE. YOU CAN
FIND THAT INTERVIEW AND MUCH
MORE.
>> ON CLICK, ORLANDO DOT COM
SLASH WEEKLY. I’M JUSTIN
WARMOTH. WE’LL HAVE A GREAT
SUNDAY.