You're a home buyer somebody or a young Person looking to buy a home you need a Bit of a reset there there is a Possibility on the other side of this That that uh inflation could be could Actually be quite low you got that you Guys welcome back to real estate mindset Today's video is going to be absolutely Bonkers I had to take a break from what I was doing to talk about what's going On around America and how institutional Investors are absolutely destroying the American dream for everyday Americans Just like you and I and here's the real Problem you guys if you look back at the Peak of investment market share Investors were purchasing per quarter Over 18% of total real estate that is a Massive problem you guys now a lot of People and a lot of data has come out That has basically said that Institutional investors and investors in General are not investing in the housing Market as much but the situation is guys It's not that they're not investing as Much but but the thing is is what They're investing in is affordable Housing so it's still a huge problem Because maybe they're not doing midsize Houses but the most affordable housing Is horrible because that's most of the Inventory stock we need America right Now obviously guys has an
Unaffordability problem so the fact that Recent data shows investor market share Is 26% of total affordable housing you guys That's live data that's recent data of What's going on right now so even though Yeah there's quantitative tightening of 2 years that's not enough to properly Curve investor demand in the housing Market and it's not just institutional Investors now you guys obviously you Could see here I did take you guys all The way to Florida I am landbased shark Fishing it's catch and release all Conservation I think we're hooked up Right now so I may need to pause this Video but regardless you guys for all This effort if you can let me know You're still there like the video Subscribe if you haven't already shoot Me a comment below and either way you Guys I hope you enjoy this video You Know guys I guess what I'm really trying To say is something needs to change and This is going to be a video of Hope Because something is changing and that Change is finally starting and it's Starting in my home state of Texas now We'll review an article titled Government Greg Abbott wants the Texas Legislator to ring in investors behind a Large scale home purchases now there are Many issues with the housing market Institutional investing in sfrs is a big
Problem a lot of people say there's only Three four 5% of total housing stock That goes towards two institutional Investors but that's still a lot of Housing stock and most of the housing Stock guys don't forget is in high Concentration areas so they have a lot Of it in just a few areas nevertheless Though Mom and Pops also have way too Much real EST and so the question is is Like how much is too much I'm okay with Like people having only one house if you Have more than one house you're taxed More on it right so maybe something like That but regardless solution is what we Want to talk about today and so we'll Dig into that before I end this what do You guys think about this scene I mean Look at where I'm at you guys I had to Go here to something like this because Quite frankly I needed to take a break Don't forget to take a break obviously You got to have a lot of patience when Waiting for house prices to be more Affordable and you know and being in the Data too much is not always a good thing And so I've taken you guys here I'm Really hoping you guys are going to Enjoy the rest of this seriously guys I Absolutely love it here but let's jump Into the article now the article points Out that Governor Greg Abbott called on State lawmakers Friday to try to stop Wall Street's presence in the Texas
Housing market and real quick you guys I Hope the sound of the ocean doesn't Interfere I'll get another scene after Reading this but listen to that Super calming right back into the Article as the nation's housing Affordability crisis continues unabated Lawmakers and housing Advocates have Increasingly concentrated scrutiny on So-called institutional home buyers Meaning investors big and small as well As corporations who buy single family Homes to rent them out they accuse Corporations and hedge funds of playing An outsized role in the home buying Market and outbidding would be firsttime Home buyers even though estimates show Investors only owe a small percentage of The nation's overall housing stock and So again how can a normal everyday Consumer compete with Wall Street I mean Seriously guys comment below I want to Know what you think to me you can't Really do that it's not fair I mean I Struggle just to get normal consumers Just to pay attention to what an Interest rate is what an amortization Schedule is now they potentially have to Represent themselves when buying a house You're asking for a lot you're putting a Lot of weight now again I think Consumers can handle change like this But when you put in Wall Street in that Mix it becomes almost an impossible game
But let me know what you guys think so Far with what the article is pointing Out a spike in investor activity in the Housing market in the covid-19 pandemic Era has sense prompted lawmakers to try To Curel and even ban it as it means to Bring bring down home prices and give Firsttime home buyers a leg up in the Market Abbott joined the frey Friday now Honestly guys big props to Texas so Hopefully Texas continues to lead the Way hopefully we have our hero when it Comes to curving institutional Investment out of the housing market Again I don't know big hill to climb Obviously there's great corruption and Fraud so it's probably a long journey But but obviously it's nice to know that People are starting to talk about it and It's starting to become mainstream let Me know what you guys think so far let's Jump back into the article this is the Governor I strongly support free markets So it's important to understand that Because this is really kind of a Double-edged sword because people don't Want the government to come in and Reregulate and take away our freedoms Which is totally understandable but on The other hand you have again corruption Greed and fraud so at what point do you Need government intervention I mean Seriously you know ask yourself that Question because I understand all of
Those points but are you saying that we Don't have an issue with institutional Investors in our housing market let me Know what you guys think let's jump into The article but and here's the butt part But this corporate largescale buying of Residential homes seems to be distorting The market and making it harder for the Average Texan and hopefully this will be American eventually but for now the Average Tex To purchase a home this must be added to The legislation agenda to protect Texas Families and again we want that Texas to Be replaced with obviously Americans Because this is a nationwide problem It's not just isolated in Texas Investors ramped up their home Purchasing noticeably during the Pandemic when interest rates were at Historical lows Texas in particular was A major hotbed for investor activity in The home buying Market as demand for Housing skyrocketed amid the state's Robust growth Texas led the nation in Home purchases by investors in 2021 Unfortunately according to the National Association of Realtors 28% again you Guys 28% of all homes sold that year Went to an Institutional Investor in the State of Texas 28% now it says Institutional Investor that just Pro it Probably means means investors not just Institutional investors if it's
Specifically institutional investors can You guys imagine I mean how much time do We have to become homeowners before cor Corporations are going to own every Single housing unit I mean is this stuff Not disturbing again thank goodness we Have someone talking about it seeking Change real estate mindset check it out Man it was absolute pleasure talking to You I'm glad you understand that America Has a spending problem with the dollar Deficit spending it's absolute pleasure Man I mean good people are around you Guys that's why I always say if you have Anxiety if you're stressed about the Housing market think of someone other Than yourself and start serving some People right have a relationship Relationships are probably one of the Most important things in life in my Opinion not trying to get all mushy Let's jump back into the article the Figures of 28% prompted State lawmakers Last year to try to re in this type of Investment now Texas lawmakers approved A Bill to commission an annual report From the Texas Real Estate research Center at Texas A&M University to track Institutional buyers Moves In the state Housing market so they're doing Something about it but not enough an Avat vetoed that bill part of a rash of Vetos he used to pressure then wearing Republicans legislators to agree on a
Massive property tax cut package and Honestly you guys remember that package Because I'm in a Texas remarkable Package he actually you know depending On where you are obviously I'm not CPA Consults and attorney but the governor Got us basically $100,000 off on our Assess value so for example my tax rate Is 35% so if I save $100,000 that's $3500 a year he just Saves me so again he kind of put this on Pause he's helping homeowners in that Way and hopefully he'll make his way Back to this legislation and he will get Them out of the housing market and the Rest of America follows we can only hope Let's dig back in economists and housing Experts questioned Friday whether Limiting investors from buying and Owning homes would improve the housing Market and really benefit first-time Home buyers and I'm going to just say Obviously yes institutional investors Share of single family homes in some Parts of the country can be high Research says but it's unclear how much They distort the overall housing market An estimate from Brookings institution Pegs Institutional Investor share of the Nation single family rental stock at 3% so again I don't care if it's 1% Don't buy sfrs build apartments and I do Think it absolutely is going to help for Some home buyers especially in the areas
Heavy in institutional investing like Texas limiting or barring institutional Investors from purchasing homes who then Rent out their homes would mean fewer Rental units overall so they're playing This oh well then the rental Market's Going to be horrible that could Potentially bar renters who tend to have Lower incomes from living in wealthier Neighborhoods with access to better School districts and job opportunities She said so yeah you know what she's got A point right let's just steal and Profit off of the American dream of home Ownership are they really making that Point right now do they re are they Really concerned about renters when they Should be concerned about renters Purchasing the homes that they want to Buy shouldn't that be the real focusing Point here let me know what you think Institutional investors aren't buying as Many homes as they did during the Pandemic but we do know that they are Buying more affordable homes so doesn't That make the problem even worse owing To high interest rates investors with at Least a thousand homes in their Portfolio made up .4% of us home Purchases at the end of the fourth Quarter last year according to the Figures provided by John Burns research And Consulting a firm that tracks the Housing market that's down from the peak
Of 2.4% in 2022 that Trend was apparent In some parts of Texas in the Dallas Area the number of investor purchases Peaked in early 2022 at around 40,000 Figures from John Burns data at the end Of 2023 those purchases had fallen to a Little more than 20 ,000 in line with Preco levels now here's the thing about The rental market I get it but the good Thing is is we still have an Overwhelming amount of apartments and Inventory that's coming on the market in The rentals the problem is you guys is We need them to come on the market right Now so there may be a little bit of pain Coming back in my opinion to the rental Market but that will be eventually Offset by the flood of apartments that Continue to be completed and from a Historical aspect you can see that here With new privately owned housing units Under construction that are five units Or more and this goes back all the way To the 1970s so you know again I say Let's focus on the big issues here one Of the big issues in my opinion even if It's not institutional investors it's Medium-sized investors even small Investors I myself you guys would Sacrifice my goal of investing in real Estate if it meant that everyone had an Equal chance at becoming a homeowner First in other words I'm okay okay with Owning just one home I'm good with that
I don't need to own more than one home So I say take it away from everyone help The home buyers out help the new home Buyers out and let's bring ballic back To the housing market now obviously There's a lot of things involved I don't Know exactly how that would work I don't Know exactly what to do I know everyone Has their hands full and that's why I'm Reaching out to you guys let me know What you think should happen in the Housing market exactly when it comes to Institutional investors should there be No government intervention or Is it time for the government to finally Do something about what's happening in Regards to investing in the housing Markets I really appreciate you guys Watching the video obviously again you Guys take a look where I'm at absolutely Beautiful I'm glad that I can share a Little bit about what I do for fun how I Stay balanced with you guys you guys Have absolutely changed my life I'm so Humbled I am so blessed I really hope I'm making you as strong as you're Making me don't forget about the free Home buying course I'll be putting out Some more data some more videos don't Miss the lives the lives are filled with Overwhelming value at least that's what I try to do and a market update and Other than that guys I really appreciate You if you guys are out there investing
In real estate you guys already know I Wish you luck and I hope you win
