1 00:00:00,320 --> 00:00:03,760 Speaker 1: You're listening to KFI AM six forty on demand. 2 00:00:05,160 --> 00:00:08,320 Speaker 2: Louke Penrose with you this evening until ten. Good to 3 00:00:08,360 --> 00:00:10,720 Speaker 2: have you along with us. Thanks you for tuning in. 4 00:00:10,840 --> 00:00:14,400 Speaker 2: Everybody is talking about this viral discussion. There are viral 5 00:00:14,520 --> 00:00:18,119 Speaker 2: videos and then there are viral discussions, and it started 6 00:00:18,160 --> 00:00:21,479 Speaker 2: on Reddit and just continued to build. And it's a 7 00:00:21,520 --> 00:00:25,480 Speaker 2: simple graph, but it has so many implications. Twelve percent 8 00:00:25,760 --> 00:00:31,440 Speaker 2: of thirty year old Americans are married homeowners right now. 9 00:00:32,080 --> 00:00:36,800 Speaker 2: Twelve percent. Now you can say is that a little 10 00:00:37,080 --> 00:00:39,360 Speaker 2: or is that a lot? And that's how the perspective 11 00:00:39,920 --> 00:00:43,000 Speaker 2: comes in to put it in perspective. That's really low 12 00:00:43,080 --> 00:00:48,360 Speaker 2: and dropping and has been dropping pretty dramatically. In the fifties, 13 00:00:48,360 --> 00:00:51,440 Speaker 2: it was over fifty percent. Post World War Two, over 14 00:00:51,560 --> 00:00:55,640 Speaker 2: fifty percent of thirty year old Americans were married homeowners. 15 00:00:56,880 --> 00:01:00,720 Speaker 2: By twenty twenty that dropped to fifteen percent, and since 16 00:01:00,800 --> 00:01:07,760 Speaker 2: COVID it has continued to drop. And everyone's opining as 17 00:01:07,760 --> 00:01:12,959 Speaker 2: to why that is right across the board about for 18 00:01:13,080 --> 00:01:17,520 Speaker 2: young American millennials, home prices are too expensive or every 19 00:01:17,560 --> 00:01:21,080 Speaker 2: combination in between. Here's Megan Kelly, she got in on 20 00:01:21,160 --> 00:01:25,560 Speaker 2: this discussion on this is Megan Kelly serious xm Our 21 00:01:25,560 --> 00:01:27,080 Speaker 2: competition is the percentage. 22 00:01:26,680 --> 00:01:29,720 Speaker 3: Of thirty year olds who were both married and homeowners. Okay, 23 00:01:29,800 --> 00:01:34,000 Speaker 3: nineteen fifty it was over fifty percent, and in twenty 24 00:01:34,040 --> 00:01:37,000 Speaker 3: twenty it is under fifteen percent. 25 00:01:36,959 --> 00:01:40,760 Speaker 2: Under fifteen percent, and twenty twenty today it's at twelve percent. 26 00:01:40,840 --> 00:01:43,840 Speaker 3: They are not getting married and they cannot afford a home. 27 00:01:43,920 --> 00:01:45,840 Speaker 3: That's the reason. The reason they don't own a home 28 00:01:45,920 --> 00:01:48,760 Speaker 3: is because they cannot afford one. I'm sure they'd love 29 00:01:48,800 --> 00:01:50,280 Speaker 3: to own one, but they cannot afford it. 30 00:01:50,520 --> 00:01:53,680 Speaker 2: I'm not sure that they would love to have one. 31 00:01:54,160 --> 00:01:57,760 Speaker 2: That's not necessarily accurate. A lot of people would think that, 32 00:01:57,800 --> 00:02:00,880 Speaker 2: but it's not necessarily So you have to talk to 33 00:02:01,160 --> 00:02:04,280 Speaker 2: the twelve percent that are thirty and do not on 34 00:02:04,360 --> 00:02:07,720 Speaker 2: a hull because there is a reason. And what's interesting 35 00:02:07,760 --> 00:02:11,000 Speaker 2: to me is there's been lots of discussion and it 36 00:02:11,080 --> 00:02:14,000 Speaker 2: really covers the spectrum. So I'm not one of these 37 00:02:14,040 --> 00:02:17,040 Speaker 2: talk show hosts that tell you should get married and 38 00:02:17,040 --> 00:02:20,320 Speaker 2: buy a home. I leave that to the religious fundamentalists. 39 00:02:20,360 --> 00:02:25,240 Speaker 2: You do whatever you want, but we're allowed to examine 40 00:02:25,240 --> 00:02:28,799 Speaker 2: what you do and wonder why you're doing it. And 41 00:02:28,840 --> 00:02:32,160 Speaker 2: the comments that have come in on this Reddit discussion 42 00:02:32,280 --> 00:02:35,640 Speaker 2: are just incredible because it's all over the charts. It 43 00:02:35,760 --> 00:02:42,399 Speaker 2: is a huge shift, Like everybody that is thirty had 44 00:02:42,480 --> 00:02:47,959 Speaker 2: parents that were married and probably many of them lived 45 00:02:48,000 --> 00:02:51,400 Speaker 2: in a home. So it is a real shift in 46 00:02:51,440 --> 00:02:55,000 Speaker 2: our culture. And it's not one hundred percent due to finance, 47 00:02:55,000 --> 00:02:59,359 Speaker 2: although everyone is saying it is. Here's the story now 48 00:02:59,400 --> 00:03:01,560 Speaker 2: that has come out since the discussion and it all 49 00:03:01,600 --> 00:03:04,360 Speaker 2: started online. Only twelve percent of thirty year olds are 50 00:03:04,400 --> 00:03:09,440 Speaker 2: married and own homes. It reflects a widely discussed statistic 51 00:03:09,680 --> 00:03:14,560 Speaker 2: highlighting a sharp decline from over fifty percent in the 52 00:03:14,600 --> 00:03:18,240 Speaker 2: mid twentieth century, driven by rising housing costs. There it 53 00:03:18,320 --> 00:03:23,840 Speaker 2: is economic shifts and changing societal values making traditional milestones 54 00:03:23,880 --> 00:03:27,880 Speaker 2: like marriage and home ownership increasingly challenging for younger generations. 55 00:03:27,880 --> 00:03:30,640 Speaker 2: But not all young people agree. Some young people just 56 00:03:30,639 --> 00:03:34,120 Speaker 2: don't want to own a home at all. And again, 57 00:03:34,280 --> 00:03:37,920 Speaker 2: when we say young people were saying thirty thirty, I 58 00:03:37,920 --> 00:03:41,320 Speaker 2: don't know. It doesn't seem like young people territory to me. 59 00:03:42,080 --> 00:03:45,760 Speaker 2: But then there's other thoughts that thirty is the new 60 00:03:45,800 --> 00:03:48,600 Speaker 2: twenty and twenty is the new fifteen. So here's a comment. 61 00:03:48,640 --> 00:03:52,840 Speaker 2: The chart is heartbreaking, but mathematically inevitable. When housing costs 62 00:03:52,920 --> 00:03:56,360 Speaker 2: fifty percent of income and childcare another thirty percent, and 63 00:03:56,400 --> 00:03:58,880 Speaker 2: you're starting with six figures in student debt. Getting married 64 00:03:58,920 --> 00:04:01,800 Speaker 2: and buying a house stops being a life goal and 65 00:04:01,880 --> 00:04:06,080 Speaker 2: becomes a statistical impossibility. Here's another I'm part of the 66 00:04:06,120 --> 00:04:09,920 Speaker 2: twelve percent, and I don't believe the chart. Everyone I 67 00:04:09,960 --> 00:04:14,320 Speaker 2: know owns a home. Well, you can surround yourself with yourself. 68 00:04:14,360 --> 00:04:18,800 Speaker 2: That doesn't necessarily make it. So there's another one. The 69 00:04:18,839 --> 00:04:22,400 Speaker 2: assumption is that thirty year olds want to be married 70 00:04:22,480 --> 00:04:25,039 Speaker 2: and own a home, and the want is in all caps, 71 00:04:25,200 --> 00:04:28,560 Speaker 2: so emphatic. The assumption is that thirty year olds want 72 00:04:28,560 --> 00:04:30,400 Speaker 2: to be married and own a home. People are now 73 00:04:30,440 --> 00:04:32,880 Speaker 2: more mobile than in the past, and owning a home 74 00:04:32,920 --> 00:04:36,040 Speaker 2: takes away from that opportunity. People are also choosing not 75 00:04:36,080 --> 00:04:39,400 Speaker 2: to marry because of various social issues. Marriage just isn't 76 00:04:39,400 --> 00:04:42,680 Speaker 2: important to young people in America. You're either committed or not. 77 00:04:42,720 --> 00:04:45,840 Speaker 2: You choose a partner wisely or not. Well, look, this 78 00:04:45,880 --> 00:04:50,160 Speaker 2: is all very interesting to me, because it's fine if 79 00:04:50,200 --> 00:04:52,960 Speaker 2: we're going through a shift. It's happening in Europe right now. 80 00:04:53,680 --> 00:04:57,280 Speaker 2: I have relatives, my cousins are all about the same 81 00:04:57,320 --> 00:05:01,640 Speaker 2: age as me and my brother, and none of them 82 00:05:01,640 --> 00:05:04,679 Speaker 2: are married, and they have families, they just never married. 83 00:05:05,839 --> 00:05:09,000 Speaker 2: So there is something at least in Western Europe, and 84 00:05:09,320 --> 00:05:11,680 Speaker 2: things tend to start in Western Europe and then come 85 00:05:11,760 --> 00:05:17,479 Speaker 2: this way. So people are eschewing the actual vow, just 86 00:05:17,520 --> 00:05:21,680 Speaker 2: living their lives together, but not buying a home. That's 87 00:05:21,680 --> 00:05:28,400 Speaker 2: a much different thing because homes represent communities. And if 88 00:05:28,400 --> 00:05:30,760 Speaker 2: people just decide that, look, I don't want to be 89 00:05:30,800 --> 00:05:32,880 Speaker 2: married to anybody, and I never want to own a home, 90 00:05:33,200 --> 00:05:36,000 Speaker 2: we're gonna have to build a lot more apartment buildings. 91 00:05:37,880 --> 00:05:41,119 Speaker 2: So it is interesting to examine why young people feel 92 00:05:41,120 --> 00:05:44,000 Speaker 2: this way and why they're behaving the way they are behaving. Again, 93 00:05:44,080 --> 00:05:46,520 Speaker 2: I'm not telling people what to do. I'm just asking 94 00:05:46,520 --> 00:05:49,640 Speaker 2: why you're doing it. There's another one. Due to many inputs, 95 00:05:49,680 --> 00:05:54,719 Speaker 2: our society remains much more immature for longer than was 96 00:05:54,760 --> 00:05:58,240 Speaker 2: historically the case. Somehow children became locked into an extended 97 00:05:58,240 --> 00:06:02,920 Speaker 2: psychological adolescence. This has created a scenario we now live 98 00:06:02,960 --> 00:06:05,640 Speaker 2: in where thirty is the new twenty and twenty is 99 00:06:05,680 --> 00:06:11,120 Speaker 2: the new fifteen. That's not bad. I think that might 100 00:06:11,160 --> 00:06:17,440 Speaker 2: be closer to right than all the financial concerns because 101 00:06:17,920 --> 00:06:21,120 Speaker 2: this gets back to this affordability word. You heard the 102 00:06:21,160 --> 00:06:26,200 Speaker 2: President last week criticize the use of the word affordability. 103 00:06:26,279 --> 00:06:30,960 Speaker 2: Affordability isn't really a thing. It's a condition, and it's 104 00:06:31,000 --> 00:06:35,960 Speaker 2: independent to the parameters of your own definition. In other words, 105 00:06:37,200 --> 00:06:41,159 Speaker 2: you can afford a house somewhere, you may not be 106 00:06:41,200 --> 00:06:44,440 Speaker 2: able to afford to live where you want. That's very 107 00:06:44,480 --> 00:06:48,320 Speaker 2: different but saying I'm not getting married because I can't 108 00:06:48,320 --> 00:06:51,520 Speaker 2: afford a house, and that was Megan Kelly's analysis, right, They. 109 00:06:51,400 --> 00:06:54,280 Speaker 3: Are not getting married and they cannot afford a home. 110 00:06:54,360 --> 00:06:56,280 Speaker 3: That's the reason. The reason they don't own a home 111 00:06:56,360 --> 00:06:57,920 Speaker 3: is because they cannot afford one. 112 00:06:58,000 --> 00:07:00,400 Speaker 2: Yeah, I'm not sure that's accurate. I'm not sure that's 113 00:07:00,440 --> 00:07:06,040 Speaker 2: a fact. Because you can you can move like people 114 00:07:06,080 --> 00:07:12,400 Speaker 2: do move. We have all kinds of historical I mean, 115 00:07:12,560 --> 00:07:15,400 Speaker 2: there's been there's been times in our nation's history where 116 00:07:15,400 --> 00:07:20,640 Speaker 2: people moved for all kinds of reasons. My job opportunities, 117 00:07:21,040 --> 00:07:25,600 Speaker 2: running away from slave owners, just moving west for expansion, 118 00:07:25,800 --> 00:07:29,040 Speaker 2: elbow room, there's all kinds of reasons. We're going through 119 00:07:29,040 --> 00:07:31,840 Speaker 2: it right now. I just saw the U Haul report 120 00:07:32,840 --> 00:07:36,080 Speaker 2: that people are moving out of California and the top 121 00:07:36,080 --> 00:07:39,840 Speaker 2: five states where they're moving too, so people are constantly 122 00:07:39,920 --> 00:07:44,000 Speaker 2: moving for better quality of life. Part of that quality 123 00:07:44,000 --> 00:07:47,040 Speaker 2: of life for most people would be the ability to 124 00:07:47,080 --> 00:07:53,360 Speaker 2: buy a house and move into it. So it is 125 00:07:53,400 --> 00:07:56,400 Speaker 2: worth worthy of examination. But I think almost everybody has 126 00:07:56,400 --> 00:07:58,000 Speaker 2: it wrong. I'll tell you why I have it right, 127 00:07:58,240 --> 00:08:00,680 Speaker 2: and I think I am right about this, and we'll 128 00:08:00,680 --> 00:08:03,200 Speaker 2: talk about that. Coming back, lou Penrose. 129 00:08:04,000 --> 00:08:07,440 Speaker 1: You're listening to KFI AM six forty on demand. 130 00:08:12,080 --> 00:08:13,800 Speaker 2: It's not really a report. There's been a lot of 131 00:08:13,840 --> 00:08:18,840 Speaker 2: an examination about this, but sometimes these viral discussions just erupt. 132 00:08:19,000 --> 00:08:23,440 Speaker 2: This erupted on Reddit the New American Dream, Single and 133 00:08:23,480 --> 00:08:28,000 Speaker 2: renting forever. Twelve percent of thirty year olds in America 134 00:08:28,160 --> 00:08:31,800 Speaker 2: are married and own a home. That is down from 135 00:08:32,000 --> 00:08:35,400 Speaker 2: fifty four percent a generation ago. 136 00:08:35,520 --> 00:08:38,560 Speaker 3: A mere twelve percent of thirty year olds are married 137 00:08:38,920 --> 00:08:41,680 Speaker 3: and own a home right now. Twelve percent. 138 00:08:41,840 --> 00:08:44,320 Speaker 2: Its Megan Kelly. Everyone's talking about it, Hey, Louke. 139 00:08:44,480 --> 00:08:47,160 Speaker 4: Me and the love of my wife just celebrated sixteen 140 00:08:47,240 --> 00:08:51,120 Speaker 4: years together last week and both have high school educations. 141 00:08:51,240 --> 00:08:53,520 Speaker 4: With a combined income of about one hundred and eighty 142 00:08:53,559 --> 00:08:57,280 Speaker 4: thousand dollars and getting a house, a two bedroom house 143 00:08:57,440 --> 00:09:00,520 Speaker 4: completely out of reach for us with more mortgage and 144 00:09:00,559 --> 00:09:04,520 Speaker 4: down payment. Even with the twenty percent down payment, it's unreachable. 145 00:09:04,720 --> 00:09:07,280 Speaker 4: Which we could buy a house archeculators. 146 00:09:06,679 --> 00:09:12,080 Speaker 2: Happy anniversary. I think you can. I'm not exactly sure 147 00:09:13,360 --> 00:09:15,960 Speaker 2: why a combined income of one hundred and eighty grand 148 00:09:16,760 --> 00:09:18,880 Speaker 2: you ought to be able to scratch together a down payment. 149 00:09:19,440 --> 00:09:21,600 Speaker 2: I think you can pull that off. You might not 150 00:09:21,720 --> 00:09:27,560 Speaker 2: get the house you ultimately want, but where are my realtors? 151 00:09:27,600 --> 00:09:28,960 Speaker 2: Somebody get him into a starter house. 152 00:09:29,000 --> 00:09:29,480 Speaker 1: Hey, Loue. 153 00:09:29,480 --> 00:09:33,440 Speaker 5: We started with a condo that was about one hundred 154 00:09:33,440 --> 00:09:36,559 Speaker 5: and twenty five one hundred and fourteen, somewhere in that range, 155 00:09:37,040 --> 00:09:39,839 Speaker 5: and by the time we sold it, we got three 156 00:09:39,960 --> 00:09:41,920 Speaker 5: hundred for it. We took that and we put it 157 00:09:41,960 --> 00:09:45,320 Speaker 5: into a house, and thirteen years later it's. 158 00:09:45,200 --> 00:09:46,120 Speaker 6: Worked over a million. 159 00:09:46,600 --> 00:09:49,200 Speaker 5: So you start small, work your way up, and you 160 00:09:49,240 --> 00:09:50,439 Speaker 5: can't afford to get a house. 161 00:09:51,640 --> 00:09:54,360 Speaker 2: You absolutely can't afford to get a house. I agree 162 00:09:54,640 --> 00:09:58,440 Speaker 2: you might not be able to live where you want 163 00:09:58,440 --> 00:10:02,920 Speaker 2: to live, but that is an affordability problem. That's a 164 00:10:03,120 --> 00:10:09,800 Speaker 2: choice problem. I hear this a lot, and this part 165 00:10:09,800 --> 00:10:13,360 Speaker 2: of it is, we in southern California do have a 166 00:10:13,360 --> 00:10:17,360 Speaker 2: bit of an entitlement. We love it here. We we 167 00:10:17,440 --> 00:10:19,720 Speaker 2: feel like we fit, we feel like we belong, and 168 00:10:20,000 --> 00:10:22,480 Speaker 2: that's unique, I think, to Southern California, and I get 169 00:10:22,520 --> 00:10:26,240 Speaker 2: it right. I don't know really anywhere else in America 170 00:10:27,200 --> 00:10:32,000 Speaker 2: where people have wanted to move to wait place their 171 00:10:32,040 --> 00:10:34,920 Speaker 2: whole life and knew it as a young child, Like 172 00:10:34,960 --> 00:10:37,600 Speaker 2: I knew that I was moving to Southern California as 173 00:10:37,600 --> 00:10:40,800 Speaker 2: a kid, there was no question that I would live here, 174 00:10:41,760 --> 00:10:44,200 Speaker 2: and I don't I don't even know where that came from. 175 00:10:44,600 --> 00:10:48,679 Speaker 2: Maybe it was from watching television, watching Three's Company and 176 00:10:48,720 --> 00:10:51,960 Speaker 2: seeing Jack Tripper in Santa Monica, I don't know. Maybe 177 00:10:51,960 --> 00:10:54,120 Speaker 2: that was what put it in my head, or watching 178 00:10:54,200 --> 00:10:57,599 Speaker 2: Quincy sleeping in Marina del Rey on the boat. I 179 00:10:57,600 --> 00:10:59,440 Speaker 2: don't know. It may have been television. I don't know. 180 00:10:59,520 --> 00:11:01,040 Speaker 2: But all I know is that I always knew I 181 00:11:01,120 --> 00:11:04,080 Speaker 2: was gonna live here, and here I am, and people 182 00:11:04,120 --> 00:11:06,760 Speaker 2: that are not born and raised in Southern California have 183 00:11:06,840 --> 00:11:10,640 Speaker 2: the exact same story. So there is a sense that 184 00:11:10,800 --> 00:11:13,800 Speaker 2: we are gonna be here, and I think that also 185 00:11:14,559 --> 00:11:17,400 Speaker 2: gives rise to a sense that we should always be 186 00:11:17,600 --> 00:11:21,839 Speaker 2: able to live here. You hear this a lot when 187 00:11:21,840 --> 00:11:25,040 Speaker 2: people say Lou I mean, come on, housing in southern 188 00:11:25,120 --> 00:11:28,280 Speaker 2: California is getting crazy. People can't afford to live in 189 00:11:28,320 --> 00:11:33,360 Speaker 2: the same town they grew up in. And at first blush, 190 00:11:33,440 --> 00:11:35,720 Speaker 2: that sounds oh, that's terrible, and then you think, why 191 00:11:35,760 --> 00:11:38,280 Speaker 2: the hell do you think you deserve to live in 192 00:11:38,320 --> 00:11:42,760 Speaker 2: the same town you grew up in. That's actually great 193 00:11:43,400 --> 00:11:47,920 Speaker 2: for your parents, that you can't afford to buy your parents' house, Like, 194 00:11:47,960 --> 00:11:50,600 Speaker 2: that's good for that, right, Rising housing values is a 195 00:11:50,600 --> 00:11:55,439 Speaker 2: good thing. Yes, so I understand why that's off putting 196 00:11:55,559 --> 00:11:58,320 Speaker 2: that we can't afford to live in that on the 197 00:11:58,320 --> 00:12:02,840 Speaker 2: street that we grew up in or on. But remember, 198 00:12:03,760 --> 00:12:06,960 Speaker 2: rising housing values is not a terrible thing. You just 199 00:12:07,040 --> 00:12:10,760 Speaker 2: heard the caller there. I mean he rode, he rode 200 00:12:10,800 --> 00:12:12,400 Speaker 2: the hobby horse all the way up. You want to 201 00:12:12,440 --> 00:12:15,559 Speaker 2: do that, You want to get yourself a condoct start small, 202 00:12:15,600 --> 00:12:18,480 Speaker 2: get into some townhouse and move into a single family house, 203 00:12:18,760 --> 00:12:20,960 Speaker 2: and then watch that equity go up, up, up, up up. 204 00:12:21,480 --> 00:12:24,959 Speaker 2: Then don't do with so many in Southern California do 205 00:12:25,040 --> 00:12:28,360 Speaker 2: with equity, and that is pull it and buy yourself 206 00:12:28,360 --> 00:12:31,640 Speaker 2: a speedboat and a boot job. Keep the equity in 207 00:12:31,679 --> 00:12:35,640 Speaker 2: the house and roll that up and ride the wave. 208 00:12:35,760 --> 00:12:35,880 Speaker 3: Up. 209 00:12:36,000 --> 00:12:39,839 Speaker 6: Always enjoy when Lou Penrose is on KFI. Great show 210 00:12:40,679 --> 00:12:41,640 Speaker 6: and great information. 211 00:12:41,880 --> 00:12:42,840 Speaker 2: I appreciate the call. 212 00:12:42,800 --> 00:12:43,640 Speaker 6: Hey, what's going on. 213 00:12:43,760 --> 00:12:46,280 Speaker 2: It comes down to this, I don't eat the fancy 214 00:12:46,320 --> 00:12:49,040 Speaker 2: steakhouse every night because I can't afford to you. If 215 00:12:49,080 --> 00:12:51,720 Speaker 2: you can't afford to live in San Diego, then you 216 00:12:51,760 --> 00:12:53,960 Speaker 2: move somewhere where you can afford to live. It's as 217 00:12:53,960 --> 00:12:55,760 Speaker 2: simple as that, I know. And they tell me that 218 00:12:55,800 --> 00:13:01,000 Speaker 2: San Diego is more affordable than La or bitching about 219 00:13:01,040 --> 00:13:06,760 Speaker 2: living along the coast. So here's the reality. And I 220 00:13:06,760 --> 00:13:10,200 Speaker 2: think the last it was an email that we got 221 00:13:10,280 --> 00:13:11,760 Speaker 2: on this. I think I think the last one was 222 00:13:11,800 --> 00:13:15,360 Speaker 2: the right one. And that is we do live in 223 00:13:15,400 --> 00:13:19,880 Speaker 2: an extended adolescence. And thirty is the new twenty and 224 00:13:19,920 --> 00:13:25,640 Speaker 2: twenty is the new fifteen. And that's very different than 225 00:13:25,640 --> 00:13:30,480 Speaker 2: a generation ago. A twenty year old young adult in 226 00:13:30,600 --> 00:13:33,839 Speaker 2: nineteen sixty five is very different than a twenty year 227 00:13:33,840 --> 00:13:38,760 Speaker 2: old in twenty twenty six, very different with respect to 228 00:13:38,800 --> 00:13:41,480 Speaker 2: their perspective on life and where they're going. They haven't 229 00:13:41,520 --> 00:13:46,600 Speaker 2: even really made up their mind, like they're still fifteen, 230 00:13:47,320 --> 00:13:50,640 Speaker 2: which is why twenty is the new fifteen. Now, part 231 00:13:50,679 --> 00:13:53,960 Speaker 2: of that is prosperity, right, We can afford to be 232 00:13:54,040 --> 00:13:57,520 Speaker 2: a little less mature. We can afford to not rush 233 00:13:57,880 --> 00:14:02,079 Speaker 2: into the you know, the hustle and bustle of life 234 00:14:02,120 --> 00:14:05,720 Speaker 2: and the grind some of us anyway, even the ones 235 00:14:05,760 --> 00:14:07,760 Speaker 2: that can't afford it and really should be up and 236 00:14:07,800 --> 00:14:11,880 Speaker 2: at them, are still pretending like they're teenagers. Nevertheless, thirty 237 00:14:11,920 --> 00:14:16,160 Speaker 2: comes fast, and if you're not prepared for thirty in 238 00:14:16,200 --> 00:14:22,360 Speaker 2: your twenties, then you don't have a down payment and 239 00:14:22,520 --> 00:14:27,800 Speaker 2: you're probably not seriously involved with a fiance. So that's 240 00:14:27,880 --> 00:14:30,040 Speaker 2: really what's happening more than anything else. I don't think 241 00:14:30,080 --> 00:14:32,280 Speaker 2: it's a huge shift. I don't think things are going 242 00:14:32,360 --> 00:14:35,400 Speaker 2: to really change. I think people ultimately will want to 243 00:14:35,440 --> 00:14:38,480 Speaker 2: be in a house, you know, with a front door 244 00:14:39,280 --> 00:14:46,200 Speaker 2: and rooms and a yard like normal people. Renting will 245 00:14:46,200 --> 00:14:49,000 Speaker 2: only work for every It will only work for a 246 00:14:49,080 --> 00:14:51,640 Speaker 2: small amount of people. Some people say that, they say, well, 247 00:14:51,640 --> 00:14:54,280 Speaker 2: I'm just gonna rent with my whole life, Like most 248 00:14:54,360 --> 00:14:57,000 Speaker 2: people can't pull that off, and if you start having 249 00:14:57,000 --> 00:15:00,800 Speaker 2: a family, you certainly can't pull that off. So even 250 00:15:00,800 --> 00:15:04,720 Speaker 2: though it's being pushed back probably a half a decade, 251 00:15:05,720 --> 00:15:09,760 Speaker 2: because maturity has been retarded by about half a decade. 252 00:15:10,520 --> 00:15:15,760 Speaker 2: I think that ultimately people will soon want to move 253 00:15:15,760 --> 00:15:19,160 Speaker 2: into a house. And it's really important because we built 254 00:15:19,200 --> 00:15:23,760 Speaker 2: the entire landscape. The whole real estate landscape is predicated 255 00:15:23,880 --> 00:15:27,880 Speaker 2: on behavior that we're assuming. We assume that you live 256 00:15:27,920 --> 00:15:31,880 Speaker 2: in your parents' house, and you graduate high school and 257 00:15:31,920 --> 00:15:35,160 Speaker 2: you either go off to university or go learn a trade, 258 00:15:35,320 --> 00:15:37,920 Speaker 2: or go join the army or whatever you do, but 259 00:15:38,600 --> 00:15:44,760 Speaker 2: you apprentice of some sort professionally, or you know, just 260 00:15:44,840 --> 00:15:48,840 Speaker 2: to somehow figure out what you're going to do with yourself. 261 00:15:49,160 --> 00:15:53,520 Speaker 2: And then four years later, sometime around twenty one, you 262 00:15:53,600 --> 00:15:56,880 Speaker 2: and a buddy go get an apartment somewhere, like I did. 263 00:15:57,680 --> 00:16:00,880 Speaker 2: I moved into an apartment on still there in Washington 264 00:16:00,920 --> 00:16:04,520 Speaker 2: and Lincoln. And you know, you work and you go 265 00:16:04,560 --> 00:16:07,520 Speaker 2: out and you enjoy your life, and then you find 266 00:16:07,520 --> 00:16:10,120 Speaker 2: a beautiful girl and you get married. And then eventually 267 00:16:10,400 --> 00:16:12,120 Speaker 2: the two of you say for a house, and you 268 00:16:12,200 --> 00:16:16,000 Speaker 2: buy a house. And then you now you vacated the apartment. 269 00:16:16,000 --> 00:16:18,440 Speaker 2: That opens the apartment for the guy that's just about 270 00:16:18,440 --> 00:16:21,200 Speaker 2: to graduate and move out of his parents' house. You see, 271 00:16:21,320 --> 00:16:23,440 Speaker 2: then you move into a house. Now you have children, 272 00:16:23,480 --> 00:16:25,400 Speaker 2: need more bedrooms. You got to sell the house and 273 00:16:25,400 --> 00:16:27,760 Speaker 2: get yourself a bigger house with more bedrooms. Hopefully you're 274 00:16:27,760 --> 00:16:30,240 Speaker 2: making more money. You should be planning on making more money. 275 00:16:30,400 --> 00:16:34,000 Speaker 2: Now you've just emptied the starter home, right, the two 276 00:16:34,000 --> 00:16:37,120 Speaker 2: bedroom too bad? That opens up that home for the 277 00:16:37,160 --> 00:16:40,520 Speaker 2: people that are just getting started. And then and the 278 00:16:41,000 --> 00:16:43,520 Speaker 2: retired people, the empty nesters, they're supposed to sell their 279 00:16:43,560 --> 00:16:47,560 Speaker 2: homes and move into a condo, right and that vac 280 00:16:47,760 --> 00:16:50,840 Speaker 2: like that. We have all these types of models of 281 00:16:50,960 --> 00:16:54,760 Speaker 2: homes that really that dot the the the real estate 282 00:16:54,840 --> 00:16:58,160 Speaker 2: landscape in southern California for a reason, and they're all 283 00:16:58,240 --> 00:17:00,600 Speaker 2: predicated on the assumption that everyone's going to live like that. 284 00:17:01,200 --> 00:17:03,040 Speaker 2: So that's the only way it will work out. 285 00:17:03,760 --> 00:17:07,640 Speaker 1: You're listening to KFI AM six forty on demand. 286 00:17:08,760 --> 00:17:14,520 Speaker 2: At lou Penrose with you until ten talking about this discussion, 287 00:17:14,600 --> 00:17:20,119 Speaker 2: this really this viral discussion that's going on online about Americans. Now, 288 00:17:20,160 --> 00:17:26,679 Speaker 2: twelve percent of Americans thirty and under are homeowners and married. 289 00:17:26,880 --> 00:17:30,159 Speaker 2: Those are the two conditions. And what's striking about it, 290 00:17:30,240 --> 00:17:32,119 Speaker 2: Well you hear that and you think, so what I mean, 291 00:17:32,160 --> 00:17:34,720 Speaker 2: nobody gets married? And who what thirty year old can 292 00:17:34,760 --> 00:17:39,680 Speaker 2: buy a house? Loup Well, more than half of Americans 293 00:17:39,920 --> 00:17:44,520 Speaker 2: thirty years like a generation ago, Like everybody you knew 294 00:17:45,119 --> 00:17:48,600 Speaker 2: was married at thirty and owned a house. And it's 295 00:17:48,640 --> 00:17:51,800 Speaker 2: a it's a discussion being had. Is Megan Kelly's the. 296 00:17:51,800 --> 00:17:55,240 Speaker 3: Percentage of thirty year olds who were both married and homeowners? Okay, 297 00:17:55,320 --> 00:17:59,520 Speaker 3: nineteen fifty it was over fifty percent, and in twenty 298 00:17:59,560 --> 00:18:03,040 Speaker 3: twenty it is under fifteen percent, right, and now. 299 00:18:02,880 --> 00:18:05,880 Speaker 2: It's at twelve percent. And the question is what's happening 300 00:18:05,880 --> 00:18:06,280 Speaker 2: out there? 301 00:18:06,400 --> 00:18:09,640 Speaker 6: Hili? Love your show. You're entertaining and is very bright. Anyway, 302 00:18:10,080 --> 00:18:13,840 Speaker 6: grew up and we're in Timbron specifically, very expensive. Never 303 00:18:13,880 --> 00:18:17,160 Speaker 6: lived there the way my parents did, in a beautiful home, 304 00:18:17,760 --> 00:18:19,919 Speaker 6: and then they moved to Pacific Heights. Lived there as 305 00:18:19,960 --> 00:18:23,200 Speaker 6: a young adults, you know, I was going to college 306 00:18:23,240 --> 00:18:25,720 Speaker 6: and everything then. And then I lived in southern California. 307 00:18:25,760 --> 00:18:28,480 Speaker 6: I raised my two kids, father, had an incredible job, 308 00:18:28,560 --> 00:18:31,359 Speaker 6: got divorced, moved to San Diego. Now I just moved back, 309 00:18:31,359 --> 00:18:34,960 Speaker 6: and every single place equally expensive. They're all expensive. 310 00:18:35,040 --> 00:18:38,679 Speaker 2: They're all expensive. So there's two things in there that 311 00:18:38,720 --> 00:18:42,160 Speaker 2: I heard. I'll take the second one. First, Why does 312 00:18:42,200 --> 00:18:46,560 Speaker 2: everybody get divorced and move to San Diego it's it's 313 00:18:46,640 --> 00:18:51,359 Speaker 2: it's amazing to me. I hear that all the time 314 00:18:51,359 --> 00:18:55,120 Speaker 2: in San Diego, like everybody that's new in town while 315 00:18:55,119 --> 00:18:58,720 Speaker 2: I'm divorced. Like divorced women moved to San Diego first, 316 00:18:58,960 --> 00:19:01,400 Speaker 2: that's the first place they got. It doesn't matter if 317 00:19:01,440 --> 00:19:07,639 Speaker 2: they're from Marin or where she said that they started. 318 00:19:08,400 --> 00:19:11,200 Speaker 2: She started a Marine, went to Pacific Heights, then to LA, 319 00:19:11,600 --> 00:19:13,520 Speaker 2: then got divorced and went to San Diego. By the way, 320 00:19:13,560 --> 00:19:17,080 Speaker 2: that's a downward trajectory of a real estate family tree. 321 00:19:17,800 --> 00:19:23,359 Speaker 2: So I'm not sure what's going on there, but you 322 00:19:23,440 --> 00:19:27,159 Speaker 2: might want to course correct that because it's next stop 323 00:19:27,240 --> 00:19:30,400 Speaker 2: is Marino Valley. So yeah, I mean, if you're going 324 00:19:30,400 --> 00:19:33,520 Speaker 2: from Marine, Pacific Heights, La San Diego, now you're back 325 00:19:33,520 --> 00:19:37,960 Speaker 2: in LA. But the other thing that you mentioned that 326 00:19:38,000 --> 00:19:40,240 Speaker 2: I thought was striking, and you hear this all the time. 327 00:19:41,280 --> 00:19:44,040 Speaker 2: She said, my parents. I was born in Marin and 328 00:19:44,119 --> 00:19:46,920 Speaker 2: my parents were there. I could never live the way 329 00:19:47,000 --> 00:19:53,040 Speaker 2: they did. And that's so true, whether you live in 330 00:19:53,160 --> 00:19:56,520 Speaker 2: LA or San Diego or Marino Valley for that matter. Right, 331 00:19:56,560 --> 00:19:58,680 Speaker 2: none of us are living the way our parents did. 332 00:19:58,800 --> 00:20:02,760 Speaker 2: So what were they doing differently? Because things had to 333 00:20:02,800 --> 00:20:07,880 Speaker 2: be expensive then too adjusted for inflation. We just came 334 00:20:07,920 --> 00:20:12,719 Speaker 2: off the holidays and we were going through some old photos. 335 00:20:13,800 --> 00:20:15,879 Speaker 2: I'm not even sure what I was looking for. I 336 00:20:15,920 --> 00:20:18,320 Speaker 2: think it was a project that one of my sons. 337 00:20:18,320 --> 00:20:22,199 Speaker 2: I have three boys, and one of them is in 338 00:20:23,000 --> 00:20:25,119 Speaker 2: sixth grade, and there was some kind of project that 339 00:20:25,160 --> 00:20:27,439 Speaker 2: he had to do over the holiday and involve me 340 00:20:27,480 --> 00:20:30,159 Speaker 2: looking up an old photo. And so I got out 341 00:20:30,200 --> 00:20:32,159 Speaker 2: the box with all the old photos from when I 342 00:20:32,200 --> 00:20:37,159 Speaker 2: was a kid, and I was looking at like my parents' 343 00:20:37,160 --> 00:20:44,520 Speaker 2: Thanksgiving and Christmas dinner table. Now I'm Italian, so like 344 00:20:44,640 --> 00:20:49,040 Speaker 2: Thanksgiving to regular people is like Sunday to an Italian. 345 00:20:50,640 --> 00:20:53,520 Speaker 2: I think my Mexican American listeners could agree. Right, if 346 00:20:53,760 --> 00:20:55,960 Speaker 2: you're Mexican, you know what I'm talking about. Like when 347 00:20:55,960 --> 00:21:00,680 Speaker 2: we have company, we don't have two people over four 348 00:21:00,720 --> 00:21:04,919 Speaker 2: people over company to an Italian like company to a 349 00:21:04,960 --> 00:21:12,159 Speaker 2: Mexican you're talking eight, ten, fourteen people coming over. And 350 00:21:12,720 --> 00:21:17,160 Speaker 2: then there's no event, like it's just Sunday. So when 351 00:21:17,160 --> 00:21:20,359 Speaker 2: I look at some of these photographs of Thanksgiving or 352 00:21:20,400 --> 00:21:24,399 Speaker 2: Christmas Eve, and I see like thirty people at the house, 353 00:21:25,160 --> 00:21:28,400 Speaker 2: and I think, how did they do it? How did 354 00:21:28,400 --> 00:21:29,159 Speaker 2: my parents do it? 355 00:21:29,200 --> 00:21:30,480 Speaker 6: I just. 356 00:21:32,560 --> 00:21:34,720 Speaker 2: Now that they're gone. But now that I'm a grown 357 00:21:34,800 --> 00:21:38,040 Speaker 2: up and I file tax returns and like do grown 358 00:21:38,119 --> 00:21:41,159 Speaker 2: up things, I would love to see my dad's tax 359 00:21:41,240 --> 00:21:45,439 Speaker 2: return like he was. My dad was a barber in 360 00:21:45,480 --> 00:21:47,960 Speaker 2: a barber shop, and he didn't own the barber shop. 361 00:21:49,280 --> 00:21:51,480 Speaker 2: I know that because I remember my mom and dad 362 00:21:51,480 --> 00:21:54,800 Speaker 2: talking about making the rent check to mister Lee. Mister 363 00:21:54,920 --> 00:21:58,720 Speaker 2: Lee was the guy that ran the dry cleaner next 364 00:21:58,760 --> 00:22:01,280 Speaker 2: to my dad's barber shop. But mister Lee owned the building, 365 00:22:01,880 --> 00:22:05,600 Speaker 2: so he owned the duplex of the business suite. So 366 00:22:05,640 --> 00:22:09,600 Speaker 2: my dad didn't own the barber shop. But I mean, 367 00:22:09,640 --> 00:22:12,639 Speaker 2: how much can you make cutting men's hair? It was 368 00:22:12,720 --> 00:22:16,280 Speaker 2: men's haircut, It wasn't unisex. I remember that fight. Everyone 369 00:22:16,320 --> 00:22:19,840 Speaker 2: recommended that he go unisex, and he said, no, men 370 00:22:19,920 --> 00:22:23,639 Speaker 2: don't like going to places where women get their hair done. 371 00:22:23,840 --> 00:22:27,680 Speaker 2: That was my dad's philosophy. And how many how many 372 00:22:27,680 --> 00:22:30,640 Speaker 2: haircuts can you do in a day? Right? The shop 373 00:22:30,720 --> 00:22:34,639 Speaker 2: opens at nine and closes at five or six. But 374 00:22:34,880 --> 00:22:37,280 Speaker 2: he was able to buy a house. We had a house, 375 00:22:37,960 --> 00:22:39,919 Speaker 2: Me and my brother, have an older brother, just the 376 00:22:39,920 --> 00:22:41,560 Speaker 2: two of us, but we all had each had our 377 00:22:41,560 --> 00:22:44,080 Speaker 2: own bedroom and as a kid. You don't think about 378 00:22:44,119 --> 00:22:46,560 Speaker 2: these things, right, they my mom and dad had a car. 379 00:22:46,600 --> 00:22:49,880 Speaker 2: They each had cars. My mom worked part time as 380 00:22:49,880 --> 00:22:53,320 Speaker 2: a bookkeeper in a grocery store. My mom was a 381 00:22:53,400 --> 00:22:58,320 Speaker 2: high school dropout. My dad was an illiterate Italian immigrant. 382 00:23:00,920 --> 00:23:05,000 Speaker 2: And the Christmas Eve party that I was looking at 383 00:23:05,000 --> 00:23:07,920 Speaker 2: the photograph of from like from you know, the late seventies, 384 00:23:07,920 --> 00:23:15,200 Speaker 2: early eighties, Man is unbelievable acres of food and wine everywhere, 385 00:23:15,320 --> 00:23:19,800 Speaker 2: and bottles and champagne, And I'm thinking, what's going on here? 386 00:23:19,920 --> 00:23:22,200 Speaker 2: How are these people footing this bill? I went with 387 00:23:22,200 --> 00:23:24,840 Speaker 2: my wife to Costco to go get stuff because we 388 00:23:24,880 --> 00:23:27,119 Speaker 2: had Christmas Eve at our house, so we were like 389 00:23:27,200 --> 00:23:30,360 Speaker 2: home base for the family. Now, my family's not that big. 390 00:23:30,400 --> 00:23:34,600 Speaker 2: It's basically my wife's family. But we were in the teens, right. 391 00:23:35,200 --> 00:23:37,080 Speaker 2: You know, you walk out of Costco, you're looking at 392 00:23:37,160 --> 00:23:40,160 Speaker 2: five hundred and six hundred bucks for Christmas Eve dinner 393 00:23:40,200 --> 00:23:43,399 Speaker 2: if you're getting champagne and everything else. So I don't know, 394 00:23:43,440 --> 00:23:45,919 Speaker 2: adjusted for inflation, how do these people do it? So 395 00:23:46,080 --> 00:23:50,480 Speaker 2: I appreciate that comment. I don't know how my parents 396 00:23:50,480 --> 00:23:53,959 Speaker 2: in Marin lived, but I was never able to do it. 397 00:23:53,960 --> 00:23:57,600 Speaker 2: And you're right, The question is could your parents today 398 00:23:58,480 --> 00:24:03,119 Speaker 2: afford to live in Marine County or is it just 399 00:24:03,320 --> 00:24:06,400 Speaker 2: us and we're not working hard enough. I'm not sure. 400 00:24:06,400 --> 00:24:07,320 Speaker 2: I'm not sure we'll ever know. 401 00:24:08,640 --> 00:24:14,840 Speaker 1: You're listening to KFI AM six forty on demand. 402 00:24:16,560 --> 00:24:20,399 Speaker 2: Only twelve percent of thirty year olds are married and homeowners. 403 00:24:20,800 --> 00:24:25,600 Speaker 2: That is significantly down from a generation ago where over 404 00:24:25,680 --> 00:24:29,600 Speaker 2: fifty percent of thirty roles in America we're married homeowners 405 00:24:29,640 --> 00:24:30,560 Speaker 2: and we're talking about it. 406 00:24:30,640 --> 00:24:33,080 Speaker 7: There are no starter houses anymore. No contractor wants to 407 00:24:33,080 --> 00:24:35,960 Speaker 7: build a starter house. Okay, they don't make any money 408 00:24:36,000 --> 00:24:38,200 Speaker 7: doing that. You have all these people saying, I'll buy 409 00:24:38,240 --> 00:24:40,959 Speaker 7: your house, I'll buy your house, you know, and what 410 00:24:41,000 --> 00:24:43,119 Speaker 7: do they do. They flip it and they improve it, 411 00:24:43,160 --> 00:24:45,439 Speaker 7: and they flip it and it costs more money. Also, 412 00:24:45,600 --> 00:24:48,240 Speaker 7: they buy houses and then they run them out to people. 413 00:24:48,400 --> 00:24:50,639 Speaker 7: So there aren't a lot of houses out there. 414 00:24:50,720 --> 00:24:53,159 Speaker 2: Well, that's not one hundred percent true. There are people 415 00:24:53,200 --> 00:24:58,520 Speaker 2: buying homes, but that's because they are in disrepair or 416 00:24:58,560 --> 00:25:02,720 Speaker 2: there's been so much defer maintenance. But when we talk 417 00:25:02,760 --> 00:25:06,119 Speaker 2: about starter homes, what traditionally what we're talking about is 418 00:25:06,200 --> 00:25:11,920 Speaker 2: smaller residences that people start their life in with the 419 00:25:11,920 --> 00:25:16,199 Speaker 2: intention of gaining a little equity or maybe making some 420 00:25:16,280 --> 00:25:19,680 Speaker 2: improvements making the house more valuable so that you can 421 00:25:19,720 --> 00:25:22,840 Speaker 2: buy a bigger house to have your family. Nikki, you're 422 00:25:22,880 --> 00:25:24,520 Speaker 2: in a starter home. I mean you refers to your 423 00:25:24,520 --> 00:25:27,520 Speaker 2: home as a starter home, right, I mean it's a condo, 424 00:25:27,680 --> 00:25:28,959 Speaker 2: but it's yours. 425 00:25:29,359 --> 00:25:31,960 Speaker 8: Yeah, it's it's my first home I bought in la 426 00:25:32,160 --> 00:25:34,480 Speaker 8: I call it a starter home because it's my first home. 427 00:25:34,520 --> 00:25:38,280 Speaker 8: It's a condo though, right, that's a great part of town. 428 00:25:38,880 --> 00:25:42,080 Speaker 2: I love it there. I mean you it's almost I mean, 429 00:25:42,119 --> 00:25:43,919 Speaker 2: I don't know if it's walking distance to Venice, but 430 00:25:44,080 --> 00:25:45,480 Speaker 2: yeah it is. I'm super close. 431 00:25:45,960 --> 00:25:47,520 Speaker 9: Yeah, so it's an amazing investment. 432 00:25:48,160 --> 00:25:50,679 Speaker 2: The only problem with living there, and I did for 433 00:25:50,680 --> 00:25:54,879 Speaker 2: about two years, is you have to make decisions on 434 00:25:54,920 --> 00:25:57,720 Speaker 2: the weekends with respect to parking because if you move, 435 00:25:57,920 --> 00:25:59,600 Speaker 2: if you move, if you have a good parking spot 436 00:25:59,640 --> 00:26:03,640 Speaker 2: in front anywhere near your home and leave, and then 437 00:26:03,640 --> 00:26:05,119 Speaker 2: someone's going to grab it and then you won't be 438 00:26:05,160 --> 00:26:06,359 Speaker 2: able to park until Sunday night. 439 00:26:06,440 --> 00:26:09,080 Speaker 9: How did you know? It's just the bane of my existence. 440 00:26:11,080 --> 00:26:14,840 Speaker 2: Can you literally make you make social decisions on whether 441 00:26:14,920 --> 00:26:17,159 Speaker 2: or not you want to give up that choice parking spot. 442 00:26:17,200 --> 00:26:19,920 Speaker 8: And actually I have two car spots there, but one 443 00:26:19,960 --> 00:26:23,959 Speaker 8: I turned into storage and the other is taken up 444 00:26:24,000 --> 00:26:26,800 Speaker 8: by another vehicle. So I do have to battle to 445 00:26:26,840 --> 00:26:29,040 Speaker 8: find a spot on the street. But it's worth it. 446 00:26:29,600 --> 00:26:32,119 Speaker 2: Yeah, But no, if you have a really good spot 447 00:26:32,520 --> 00:26:35,840 Speaker 2: and you're called and someone's throwing a party, you think 448 00:26:35,920 --> 00:26:37,840 Speaker 2: you're calculating in your head, is this going to be 449 00:26:37,840 --> 00:26:39,040 Speaker 2: worth giving up that parking spot. 450 00:26:39,080 --> 00:26:41,040 Speaker 9: I take the opportunity to walk, get my. 451 00:26:41,000 --> 00:26:45,280 Speaker 2: Steps in right, yep, I remember now, I remember. I 452 00:26:45,760 --> 00:26:47,880 Speaker 2: love that area. Tis very walkable at that I mean, 453 00:26:47,880 --> 00:26:52,040 Speaker 2: that's where you are. That's Jim Morrison Midnight Alley's rome. 454 00:26:52,760 --> 00:26:55,880 Speaker 8: I actually say I stayed in Jim Morrison's apartment when 455 00:26:55,920 --> 00:26:58,159 Speaker 8: I first emigrated to the USA. 456 00:26:58,240 --> 00:26:59,280 Speaker 9: Actually, yeah, I. 457 00:26:59,240 --> 00:27:01,560 Speaker 2: Think everybody did. I think everybody. The first thing they 458 00:27:01,640 --> 00:27:04,399 Speaker 2: wanted to see it's a big mural down in Venice 459 00:27:04,440 --> 00:27:07,600 Speaker 2: Beach and then go over on over by Los Sienagas. 460 00:27:07,680 --> 00:27:12,000 Speaker 8: Esthetically, a bird flew in the window and nearly decapitated 461 00:27:12,040 --> 00:27:13,400 Speaker 8: itself on the ceiling fan. 462 00:27:14,359 --> 00:27:16,960 Speaker 9: I think that was Jim Morrison's spirit there. 463 00:27:17,000 --> 00:27:17,399 Speaker 6: He was. 464 00:27:17,560 --> 00:27:19,639 Speaker 2: He was coming to visit you, all right, So you 465 00:27:19,680 --> 00:27:23,040 Speaker 2: have a house. Yeah, so it is possible. But I 466 00:27:24,240 --> 00:27:27,960 Speaker 2: get it that conditions change, because if people aren't buying 467 00:27:28,000 --> 00:27:32,080 Speaker 2: these single family homes, then investors will and they'll turn 468 00:27:32,080 --> 00:27:35,879 Speaker 2: them into rentals. But that marketplace ebbs and flows too. 469 00:27:36,640 --> 00:27:41,399 Speaker 2: Owning single family homes is its own investment model. In 470 00:27:42,119 --> 00:27:46,280 Speaker 2: another life, I worked as an industry advocate for multi 471 00:27:46,280 --> 00:27:49,920 Speaker 2: family housing, and I'm here to tell you apartment buildings 472 00:27:49,920 --> 00:27:53,080 Speaker 2: are buildings for a reason. If you want to be 473 00:27:53,119 --> 00:27:55,359 Speaker 2: in the multi family housing business, you want to own 474 00:27:55,640 --> 00:28:02,399 Speaker 2: multifamily housing buildings, residential communities. Right. Owning a whole lot 475 00:28:03,119 --> 00:28:07,920 Speaker 2: of houses not as good because you know, you own 476 00:28:07,920 --> 00:28:10,600 Speaker 2: an apartment building with the sixteen units, you get a vacancy, 477 00:28:10,640 --> 00:28:13,560 Speaker 2: all right, paint and carpet, get some rental applications, get 478 00:28:13,600 --> 00:28:17,480 Speaker 2: the vacancy filled, and you're back in business. Two people 479 00:28:17,520 --> 00:28:19,719 Speaker 2: move out of a sixteen unit apartment building, not going 480 00:28:19,720 --> 00:28:24,040 Speaker 2: to break the bank. You have five single family houses, 481 00:28:24,800 --> 00:28:27,600 Speaker 2: and one person moves out. You're looking at thousands of 482 00:28:27,640 --> 00:28:30,000 Speaker 2: dollars in carpet and paint, and that's if they haven't 483 00:28:30,000 --> 00:28:33,520 Speaker 2: destroyed the place, which they do. Two people move out 484 00:28:33,560 --> 00:28:38,880 Speaker 2: of your five house portfolio of ownership. Now you're looking 485 00:28:39,080 --> 00:28:41,800 Speaker 2: at calling the bank. So it isn't the best way 486 00:28:41,840 --> 00:28:45,360 Speaker 2: to go. People do it, people make money doing it, 487 00:28:45,840 --> 00:28:49,080 Speaker 2: but I wouldn't do it. This is wrong. Well, me 488 00:28:49,120 --> 00:28:51,400 Speaker 2: and my wife got buried and we moved to California. 489 00:28:51,840 --> 00:28:54,960 Speaker 2: We found a house we could afford and needed some work. 490 00:28:55,640 --> 00:28:58,200 Speaker 2: We fixed it up. We made it, you know, a 491 00:28:58,200 --> 00:29:00,960 Speaker 2: little house into a home, lived there for a while, 492 00:29:01,560 --> 00:29:04,600 Speaker 2: and we sold it. We bought another wood, we fixed 493 00:29:04,640 --> 00:29:08,360 Speaker 2: it up, lived there for a while, and now we 494 00:29:08,400 --> 00:29:12,239 Speaker 2: own a house that's worth over a million dollars. You 495 00:29:12,320 --> 00:29:13,840 Speaker 2: just got to put in the work in the time. 496 00:29:14,840 --> 00:29:17,680 Speaker 2: Talk to you later, talk to you later. What's interesting 497 00:29:17,680 --> 00:29:21,240 Speaker 2: about that story, And that's not a unique Southern California story. 498 00:29:21,440 --> 00:29:23,320 Speaker 2: You didn't even need to put in the work, like 499 00:29:23,360 --> 00:29:25,360 Speaker 2: it didn't really didn't even need to fix it up. 500 00:29:26,400 --> 00:29:30,680 Speaker 2: You could have just lived in the unupdated house and 501 00:29:30,720 --> 00:29:34,000 Speaker 2: it still would have appreciated. That's the magic of Southern 502 00:29:34,000 --> 00:29:37,200 Speaker 2: California real estate. It still would have went up. I 503 00:29:37,280 --> 00:29:42,200 Speaker 2: know this because my wife will go and look inside 504 00:29:42,240 --> 00:29:46,000 Speaker 2: open houses, in houses that she has no intention of buying, 505 00:29:46,440 --> 00:29:48,719 Speaker 2: just to look at the upgrades. Oh what are they 506 00:29:48,760 --> 00:29:52,760 Speaker 2: doing now? What is the height of the cabinet? In 507 00:29:52,800 --> 00:29:55,880 Speaker 2: the powder room, like, these are the things that she 508 00:29:55,960 --> 00:29:58,000 Speaker 2: looks at. I have absolutely no idea what she's looking at. 509 00:29:58,320 --> 00:30:01,560 Speaker 2: And she'll come out and because I'm not going in, 510 00:30:02,360 --> 00:30:04,719 Speaker 2: and I'll say, so, how was it? And she'll say, oh, 511 00:30:04,760 --> 00:30:07,000 Speaker 2: my gosh, that house hasn't been updated since the eighties. 512 00:30:08,360 --> 00:30:11,080 Speaker 2: And I don't even know what that means. How can 513 00:30:11,120 --> 00:30:14,880 Speaker 2: you possibly know that they haven't changed the cabinet since 514 00:30:14,920 --> 00:30:17,959 Speaker 2: the eighties? And she knows, I guess the style or 515 00:30:18,000 --> 00:30:21,520 Speaker 2: the color or whatever. But the house will still be, 516 00:30:21,720 --> 00:30:27,160 Speaker 2: you know, it'll be competitively priced. It'll still be you know, 517 00:30:27,160 --> 00:30:29,440 Speaker 2: the asking price will still be higher than any of 518 00:30:29,480 --> 00:30:32,200 Speaker 2: the comps around it, even though the thing needs to 519 00:30:32,200 --> 00:30:35,280 Speaker 2: be completely gutted. So you did it right. You bought 520 00:30:35,280 --> 00:30:38,400 Speaker 2: a house, lived in it, you made the improvements. Maybe 521 00:30:38,400 --> 00:30:41,920 Speaker 2: they were creature comforts for you. That's fine. Then you 522 00:30:41,960 --> 00:30:43,880 Speaker 2: sell it, move into a bigger house, sell it, move 523 00:30:43,920 --> 00:30:45,400 Speaker 2: into a bigger house, and the next thing you know, 524 00:30:45,440 --> 00:30:50,920 Speaker 2: you're a millionaire. You're in a three bedroom, two bath, 525 00:30:51,320 --> 00:30:56,120 Speaker 2: three thousand square foot million dollar house. But that's the 526 00:30:56,160 --> 00:30:59,560 Speaker 2: way it works. Hey, good news. Though, I worked for 527 00:30:59,600 --> 00:31:02,920 Speaker 2: the member of Congress that increased the amount of money 528 00:31:03,600 --> 00:31:06,560 Speaker 2: that you can take tax free. Back in the day, 529 00:31:07,480 --> 00:31:10,240 Speaker 2: it was one hundred and twenty five thousand dollars. That 530 00:31:10,400 --> 00:31:12,479 Speaker 2: was the cap, one hundred and twenty five thousand dollars 531 00:31:12,800 --> 00:31:16,440 Speaker 2: tax free. You had to pay taxes after that, and 532 00:31:16,480 --> 00:31:18,640 Speaker 2: if you're a married couple, that was two fifty Right, 533 00:31:19,400 --> 00:31:22,040 Speaker 2: that's an incredible amount of money, two hundred fifty thousand dollars. 534 00:31:22,520 --> 00:31:27,000 Speaker 2: But in Southern California that I mean that that didn't 535 00:31:27,720 --> 00:31:31,200 Speaker 2: houses appreciated so much more when I worked in Congress 536 00:31:31,200 --> 00:31:34,000 Speaker 2: in the I worked in Congress two thousand to twenty 537 00:31:34,040 --> 00:31:37,200 Speaker 2: and fifteen, and the second member of Congress that I 538 00:31:37,320 --> 00:31:42,000 Speaker 2: worked for authored the legislation to increase that limit from 539 00:31:42,040 --> 00:31:45,240 Speaker 2: two hundred and fifty thousand dollars to five hundred thousand dollars. 540 00:31:45,520 --> 00:31:50,040 Speaker 2: And I remember having a hard time convincing other members 541 00:31:50,640 --> 00:31:54,320 Speaker 2: of Congress that it needed to be raised because we 542 00:31:54,400 --> 00:31:56,920 Speaker 2: live here in southern California and the member of Congress 543 00:31:56,960 --> 00:31:59,840 Speaker 2: that I worked for represented southern California. But you have 544 00:31:59,920 --> 00:32:02,000 Speaker 2: to realize there are four hundred and thirty five members 545 00:32:02,040 --> 00:32:06,080 Speaker 2: of Congress, and like four hundred and thirty five members 546 00:32:06,120 --> 00:32:11,360 Speaker 2: of Congress, four hundred of them represent districts where the 547 00:32:11,560 --> 00:32:17,640 Speaker 2: average home price is in five figures, and that would 548 00:32:17,680 --> 00:32:21,520 Speaker 2: include the then Speaker of the House, John Bayner, who 549 00:32:21,560 --> 00:32:24,880 Speaker 2: came from Ohio, and he said, why do we need 550 00:32:24,920 --> 00:32:27,920 Speaker 2: to raise the limit from two hundred and fifty thousand 551 00:32:27,960 --> 00:32:32,360 Speaker 2: dollars to five hundred thousand dollars. Well, where we live, 552 00:32:33,440 --> 00:32:37,560 Speaker 2: you wouldn't believe it, but houses can appreciate. You know, 553 00:32:38,080 --> 00:32:40,280 Speaker 2: after a couple of years, you can buy something for 554 00:32:40,280 --> 00:32:43,080 Speaker 2: two hundred thousand dollars and the live in it, and 555 00:32:43,120 --> 00:32:45,000 Speaker 2: the you know, and they want to sell it. It may 556 00:32:45,200 --> 00:32:47,880 Speaker 2: sell for six hundred thousand dollars. And it was like 557 00:32:47,960 --> 00:32:51,120 Speaker 2: absurd trying to convince other members of Congress that people 558 00:32:51,200 --> 00:32:54,000 Speaker 2: could have five hundred thousand dollars in equity in their 559 00:32:54,000 --> 00:32:56,440 Speaker 2: home in a short period of time, like not over 560 00:32:56,520 --> 00:32:59,520 Speaker 2: the course of their lives, like in a section of 561 00:32:59,520 --> 00:33:02,680 Speaker 2: their life, like from one house to another, in a 562 00:33:02,760 --> 00:33:05,760 Speaker 2: course of four houses, that you could gain five hundred 563 00:33:05,800 --> 00:33:07,959 Speaker 2: thousand dollars in equity. They looked at us like we 564 00:33:07,960 --> 00:33:12,120 Speaker 2: were from Mars, but we got it. So if you 565 00:33:12,200 --> 00:33:16,640 Speaker 2: got five hundred thousand dollars in equity, that's tax free. 566 00:33:16,680 --> 00:33:18,480 Speaker 2: You grab that. I don't care how much you made. 567 00:33:18,520 --> 00:33:21,280 Speaker 2: There's no way you can say five hundred grand and 568 00:33:22,360 --> 00:33:26,080 Speaker 2: thank United States Congressman Ed Royce retired because he authored 569 00:33:26,080 --> 00:33:29,560 Speaker 2: that legislation. All right, when we come back. The pizza 570 00:33:29,600 --> 00:33:35,000 Speaker 2: industry is going through a renaissance. They're really just changing everything. 571 00:33:35,280 --> 00:33:38,360 Speaker 2: Wall Street Journal big story. The pizza industry is not 572 00:33:38,400 --> 00:33:42,800 Speaker 2: what the pizza industry was. Delivery has changed everything. The 573 00:33:43,480 --> 00:33:47,040 Speaker 2: pizza delivery model was caught flat footed. They don't know 574 00:33:47,040 --> 00:33:49,320 Speaker 2: what to do, and it's very expensive to make a pie, 575 00:33:49,360 --> 00:33:51,240 Speaker 2: so they're changing everything. We'll tell you all about it. 576 00:33:51,800 --> 00:33:54,320 Speaker 1: KFI six on demand