How an obsession with home ownership can ruin the economy

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Название	:	How an obsession with home ownership can ruin the economy
Продолжительность	:	12.50
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Is this for real? so this objectively cost the same but with one YOU ACTUALLY OWN SOMETHING, and this guy is saying its a toss up
Comment from : Ryan Reppucci

This is a mix of few reasonable points with a bunch of garbage Yes, excessive focus on fostering home ownership can reduce the funds available to social programs who benefit those who cannot get on the property ladder Yes, home ownership can make people less mobile But if it's somewhat reasonable to expect youth to move around looking for opportunities, it is normal for established adults to want to settle down, but I guess according to the authors we should sacrifice this to the altar of the economy, because our overlord the labour market wants us mobilebrbrChoosing Switzerland and Romania as countries to compare is quite ridiculous No point can ever be made by picking only two countries with lots of differences and attributing everything to the home ownership rate Many older people in Romania own their home because it was assigned to them by the communist government That's why the home ownership rate is high But many now cannot afford to fix the roof and the walls, which is why in many towns in Romania you'll see signs warning that shingles and plaster may fall brbrSwitzerland is far from the idyllic system they describe: a olygopolised real estate market, where real estate agencies have incredible unwarranted power You are (somewhat) protected as a tenant but you are at the full mercy of the agencies as a perspective tenant brPeople are reluctant to force agencies to lower their rent if they don't know that they'll spend a decade or more in that apartment, as being blacklisted by agencies can make it way harder to find a place if you need to move brSimilarly, although it is nice that rent cannot be increased without a reason, it cannot even be adjusted for inflation As such, any change in the market happens with new contracts only You have old or middle-aged people with 20+ years old contracts spending half the youth next door As a consequence, people hog their apartment and don't leave it unless they have to I know people who live in Lausanne and commute daily to Geneva to work (for decades) not to let go of their rent contract Again, this helps tenants but perspective tenants foot the bill
Comment from : Niccolò Ricardi

seems like capitalism is now aiming to make us all homeless keep your apartments everyone!
Comment from : Serdar Güven

It should be! Cleaning grease isn'r fun! And having people call on cell phone's to scare people because they live another way is poor! Plus if you follow the rules and outsiders cause issue's, what does that say about them and our security within our country! Security is not a uniform gig, it's a respect issue and what a person worked for to get thier home! Such as flipping house's, fixing a cottage and gaining 40'000$ equity to pay for a down payment! Stop squater's and people disturbing other's hard earned land! 2023! To many dogs making marks within other people place's!
Comment from : Nathan Mciver

Serious content, but I can't help but laugh a little at 2:45 with the sped-up dancing
Comment from : foreverteuk

A promo video for the WEF explaining how you shouldnt own anything to be happy brbrAnnoy the WEF, own property and be happy
Comment from : Someguy12121

This has got to be the weakest argument I have ever seen Even the people you interviewed highlighted the intricacies of how it changes according to your circumstances and the current economic state (boom vs bust stage of the cycle) 3 years later it's clear that rent prices are not sustainable since they end up being treated like they are a derivative stock product causing prices to increase while wages fail to keep up Garbage liberal economics propaganda
Comment from : Khalid

house shall remain house, not investment
Comment from : Wiandry Adi Wasistio

In a western society with the ever increasing gap between the haves and the have nots, one really has to question a so called economist's critique of the working man desiring to have somewhere/something to call his own Ask any German or Dutch person if they would prefer to rent or own their own home The answer is easy They rent out of necessity not because it's more preferable
Comment from : Paddy234

While I agree with the main argument about the economic benefits to society of a housing policy promoting rents over buying, the comparison of the benefits of renting over buying for the individual are, in my opinion, not correct Every month that I pay my mortgage, the portion of capital repayment of that payment is an internal transfer of savings from my bank account to my 'brick account', so I'm effectively keeping that money Only interest, insurance and other costs are 'lost' But when I pay rent, every penny is 'lost' There's no netting out between the minus in my bank account, and the plus on my 'brick account' The right calculation should therefore be to compare rental payment against interest + insurance + other costs payments, excluding the principal repayment 12:50
Comment from : marcosoave

The effects of the downturn are beginning to sink in People are being impacted by the long-term decline in property prices and the housing market I recently sold my house in the California area, and I want to invest my lump-sum profit in the stock market before prices start to rise again Is now the right moment to buy or not?
Comment from : Antonio Bianh

On first viewing, this video is absurd Has anyone at "The Economist" studied Hans-Jochen Vogel's writings, in particular, "Gerechtigkeit"? Among many others, this video raises the following question - - Which is more at fault for unstable housing: (1) government policies encouraging home ownership, (2) government policies promoting continuous growth of populations and growth of productivity, (3) the inability of economists and government policy makers to recognize the fundamental difference between land and products or services, where land is fixed in supply? So long as real estate prices continue to rise, due to increasing populations and hence demand, while livable land cannot multiply, land prices will continue to rise faster than wages Already 60 of Americans do not have sufficient income to afford the median priced home in their geographic region because the monthly mortgage would exceed 30 (bank policy) of their income What this means is that a smaller and smaller slice of wealthy elites will be able to afford to buy raw land or developed property More and more Americans will be forced to pay rent to a smaller and smaller group of wealthy property owners Or, in other words, more and more Americans will be slaves to low paying corporate wages with a bigger and bigger slice of their income going to pay rent This video also totally ignores the consequence of life long renting, which can leave a person destitute without any retirement savings, while home ownership gradually builds a pile of equity, especially from the longer term climb in real estate values Is it right for people who have grown up in a city to be forced to leave because investors want to continue pushing up real estate prices and rents? I think there is a more fundamental right to life, liberty, and pursuit of happiness, which supersedes any goal of increasing corporate profits to increase dividends to shareholders and already astronomical salaries for CEO's Can you only measure quality of life by superficial metrics using abstract efficiencies of productivity? Wealthy Americans, REITs, and Hedge Funds already have the advantage of being able to pay cash for real estate, while those with insignificant savings and income cannot qualify for a mortgage loan from any source, further segmenting the landed aristocracy and disadvantaging the poor
Comment from : Omni Zen

Though I hear the case made here based on an individual life span, the argument breaks down if you think about generational wealth Renting a home across multiple generations is obviously more costly that securing a home that future family generations can use
Comment from : pm

Buying is the same as rentinguntil your mortgage is paid and when you retire have you got the means to continue to pay your rent?brMortgage pay for 25 yrsbrRent pay for life
Comment from : simoncycles

Renting is ALWAYS worse
Comment from : bot owner

The government is your landlord, you don't "own" anything - the industry's done an amazing job at programming people
Comment from : Wise One Beats

You vill own nothing and be happybr- Klaus Shuab
Comment from : Dani Thomas

I think a housing crash will happen because all those people who bought homes over asking price, although it was at a low interest rate, they are over their heads They have no equity if the housing prices continue to go down, and if for whatever reason they cannot afford the house anymore and it goes into foreclosure because even if they try to sell, they will not make any money I think this will happen to a lot of people especially with the massive layoff predicted for the future and the cost of living rising at a high speed
Comment from : Rane Pacheco

How is never ending rent payments a better idea? We own our house, car and truck All the money that went to payments is now ours
Comment from : catitude4

This is the worst psy op
Comment from : PikáchuClásico

Home rental is considered as a less stable lifestyle in Japan because elderly people and foreigners are more likely to be refused when they try to rent a house How about in other countries?brI don't know whether other countries have the same problem, but it seems that many countries are sharing the idea of "unstable rent, stable ownership"
Comment from : レッド레드

Sounds like the authors are socialists
Comment from : Rachel Klein

Only fifty percent of German’s own there own homes
Comment from : Rosemarie Tolentino

If as a renter there is no assurance of stability (in both the price and the access), people will always want to buy and own This is what extensive privatization of land gets you
Comment from : al cue

I detest the monopolizing practice of millionaire real estate investors Buying up all the homes (simply to rent them out), investors are ruining the real estate industry by making homes less affordable for the average person who wants to live in one Real estate investors are also decreasing the quality of American homes by not purchasing homes they really care about People follow their lead, and the entire industry just thrives on flimsy real estate for profits br brMost homes today are overpriced for their value, poorly constructed, covered in cheap vinyl plastic, and worthless Every house looks exactly the same, so there is no character You can no longer tell one house from the other in most neighborhoods, and greedy investors are partly the blame br brBuilders aren't using high-quality materials to build homes, because buyers aren't purchasing better quality homes Americans are moving far too often Buyers might as well be investors, since they're moving every 3-5 years! In the past, people never moved that often When buyers constantly buy-flip-move-repeat, they lose interest in the quality of the homes they're buying Moving so often, buyers aren't inclined to care about how homes are made and whether the homes they purchase were built to last br brThose who care about housing affordability AND quality end up with limited choices because builders are just catering to real estate investors and frequent movers A problem too are the many "quick homebuyers" or "cash-for-houses" investors cropping up who trivialize the homebuying process and treat homes as though they were mere throw-away commodities br brFinally, I'll say that we have enough wanna-be real estate investors! We need more people who want to buy AND live in well-designed homes, and live in them for a really long time This needs to happen for builders to revert to caring about building homes properly and well Real estate agents and investors not caring about the quality of the homes they help people purchase and sell, does an incredible disservice to American homeowners
Comment from : Artisan Home

So who are the renters renting from? People that own not one, but multiple properties Is the point of this video promoting having only a rich few people own a large portion of homes, while the rest of the peasants have to be content to just rent instead of having the security of their own property?
Comment from : David

As a renter:brbr-Can't paint the wall the color I likebr-Can't have a dog if the landlord doesn't agreebr-Can't change the old furnituresbr-Can't change the old appliancesbr-Can't renovate the house to my own standardbr-My rent can go up anytimebr-I can be kicked out anytimebr-I can't register my business without landlord's permissionbr-I pay a lot of money to the landlord every monthbrbrIS THIS OBSESSION OR YOU ARE TRYING TO MAKE US ALL LOOK LIKE FOOLS?
Comment from : lnteI

Hmm Maybe justifiable when rents were only eye-wateringly expensive - rather than the eye-bleedingly rates we see now
Comment from : lazeeegirl

I think it’s ideal to buy You might not benefit but your kids will because they will not have to buy their own house
Comment from : Dolly Parton

The ads in between are so distracting
Comment from : Yasmijn B Privé

Who can afford a home theses day's it's for the rich
Comment from : Dave Eden

Yes, definitely much better to line the pockets of some landlord via massively above-cost rent than build your own wealthbrI wonder if the staff of the economist would see themselves more as the renters or the landlords in this new system? I wonder if they would vote for rent controls?
Comment from : Alex R-T

The elites are the ones who buy homes in the richest neighborhoods of every state Of course they don't preach what they practice Follow what they do not what they say they're hypocrites basically
Comment from : Steve

Most people look to there home as a form of saving When the mortgage is finished you have a larger spendable income to use or save Renting you rent until you pass away
Comment from : Adrian Rouse

I am living in central Florida Renting a place of similar size, location, quality and features as my home is neither affordable or available
Comment from : Wilfried Dehne

Too many open questions after this Would really appreciate links to the studies mentioned This is especially needed around Western housing policies being a "mistake" and references to how they determined renting and buying being a break even in the long run
Comment from : Trevor Harris

Bro renting will never be better than buying otherwise no one will ever buy a real estate and everyone will just rent and developers will go bankrupt but having said that real estate is the worst and jobbers are seriously being scammed here
Comment from : Prateek Sarin

to all the offended homeowners: this is about macroeconomical implications and its relations to social dynamics not about your mortgage that you are proud of for some reason lol
Comment from : Jaime D

@ the Economist: I don't think you accurately understand why the 2008 crash happened in United States There are lot of resources out there that you can read to better educate yourself
Comment from : Saranath Godagama

I am preoccupied with people's aspirations, as living organisms, to buy and necessarily hold possession of houses stuffed with tons of hodgepodge, often to the disadvantage of their short life No doubt, biology convincingly proves that nature, once launched life into production, provides it exclusively for rent or leasing without the right of redemption; In simple terms, by subscription and without any guarantees of its quality, composition and, most importantly, its durationbrMediocre service, you would say, if the service weren't called "life" but a subscription to Netflix Of course, the belief in the afterlife, the immortality of the spirit and the goal-setting of any business to produce and sell more and more do their job With this in mind, it is quite evident to me that a more harmonious scenario that would make life better and possibly happier is the promotion of the lifestyle of humankind under the motto of "everything for rent", as nature intended People would become more mobile, the economy would perform effectively, living believers would be more pleasing to Gods, a business would welcome endless cycles of efficient consumption, and nature would receive relief with a rational consumption of resources Renting is better than possession: houses, cars, computers, jewellery and even graves, you name it The incentive to own assets kills life!
Comment from : Mind your Family

Wow, I just wasted 12 minutes of my life listening to the most worthless thing that anyone could come up with Who in the right mind would regret buying a home?
Comment from : Indientis

Home ownership is my save hause ! It's batter to rent and to pay every year more and more ? I don't think so
Comment from : MichaL „Kosmita“

Did a landlord write this lol
Comment from : Alex Lewis

The financial collapse wasn’t caused by home owners it was caused by a $27 trillion dollar mortgage securities fraud brAfter the banks lost the securities market they had no income so they foreclosed on 20-30 million homes that hadn’t defaulted
Comment from : The Jack of all travels

"Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies I would greatly appreciate any suggestions
Comment from : Theressa

'You'll own nothing, and you'll be happy'brbrThe reason house prices have soared is because government's stopped building council houses to keep their landlord donors happy Most politicians themselves are landlords
Comment from : Hi There

Wow What a bad takewhat about the lenders giving out subprime loans that caused the 2008 crash? It's as if they're trying to say it selfish for anyone who wants home to get one because too many people already own homes??? Mortgages cause higher unemployment rates??? What I agree more housing should be built for all incomes, but blaming the home owners and guilt tripping prospective home buyers is not going to win many allies here Especially in the US where rents are skyrocketing and a fixed rate mortgage would be a dream for many of us
Comment from : Meiu

Well Germany also has a low ownership rate, being only in front of switzerland Yet here, houses are also WAY more expensive than they were in 1970s
Comment from : Tim Brandl

Another reason it's less likely to happen that way is that there is already too much demand waiting to absorb that regardless of how everyone is panicking and calling the crash Nobody was making this prediction in 2008, at least not the general public, as I indicated below In the other comment, it was mentioned that the ownership rate peaked in 2004 As of today, we are at the median level, having previously peaked in the second quarter of 2020 It decreased by 3 over 4 years, from 2008 to 2012, going from 68 to 65 in the second quarter of 2020
Comment from : Nimaga Bouna

Renting is like paying off a mortgage but with the difference that you don't own the asset at the end
Comment from : Immortalist

Home ownership can ruin the economy? Really? What's the alternative? Renting? Just asking
Comment from : linzie rogers

Be wary of any argument that can inadvertently privilege the concentration of land and property ownership into fewer hands, rather than decentralizing the ownership of land and homes Anything that increases the possibility or power of a landed gentry is susbrbrThe extreme version of this argument: "You will own nothing and be happy"
Comment from : Edward Thach

The media is starting to normalise paying rent beacuse Opportunities to buy your first house are being taken away Rents are being increased This is how the rich stay rich and the poor stay poor, it is not a mistake
Comment from : Leo Darnell

This still didnt age well
Comment from : Alt Thinking

Yawn ! Give it to the economist to not look at the real problem: speculative housing market, for profit housing, zoning laws Not supply or NIMBYS All the housing that is being built is luxury housing and many big cities have high vacancy rates, just greedy landlords and property owners artificially inflating prices while people can’t find a home The problems is and always will be capitalism
Comment from : JORGE CRUZ

Singapore housing is provided by the state
Comment from : Michael Mallal

Not paying rent or mortgage makes it possible to live on pension; even perhaps o/s
Comment from : Michael Mallal

What a load of great reset properganda
Comment from : Connor Barnes

An obsession with home ownership??? is it a bad thing now?
Comment from : Martek

Why don't you mention that it was wall street and the banks that caused the crash on purpose!
Comment from : Bad Dude Corn Pop

what stupidity of The economist, now it turns out tha is better rent than buy your own house
Comment from : Jairo Eduardo Jimenez Sotero

Every single person I know who bought property when they were young and paid off over 50 while living in it, purchased another property 10-15 years later and kept the first one which they rented outbrSome of these people now own 3-5 properties and can retire at the age of 55brMy family always rented, and we own nothing!brThis documentary plays into the hands of large Banks and property funds: get everyone enslaved to give you money every month, make them work for you and set the wages so they can't leave
Comment from : PF

buy smart
Comment from : Oliver W

This is dumb That just means the one with the obsession IS the landlord This is not changing the obsession, it is just promoting monopolization of housing by the richest people I denounce this video and this whole concept People should own their houses If anything we neeed LESS LANDLORDS who are hurting the economy by taking the lion's share of everyones wages so they have less to contribute to the economy or to use for alternative purposes such as starting a small business, which would help the economy further!
Comment from : Ryan Mckenna

I think the only ones against home ownership are the bankers Because a home isn't money in the bank!
Comment from : Nancie Nordwick

Nothing is wrong with home ownership It should be the idea What the real problem is is zoning laws, that is single family zoning, not letting multi unit buildings be built so houses can be affordable
Comment from : Wisdomseeker

What a manipulation
Comment from : Pawel Sz

I dont understand what is the message here That home ownership and renting cost the same but after 30 years you own the property? How is that the bad option? I see this curent around the world where news articles try to convince the population that renting is the best for an unknown reason
Comment from : Big Dady Puf

These rich losers are now making propaganda to convince you owning land is a bad idea
Comment from : A T

If you were a Mellinial in America prepared to buy a house between September 2020 and March 2021 (when this video Came out)😂… You hit the jackpot … 275 interest rate … Your property value increased by 20-30 … but your payment stayed the same … compared if you rented and your rent is increasing yearly and in most parts of the US rent and mortgage the same price …brbrAll this happened and your income probably increased over the past 2 years
Comment from : A Z

2 years ago today … Interest rates were a record low of 275 … Imagine taking this advice 2 years ago … now the cost of home went up, and interest Prime Rates are now 75 , Rent increased by 15-20 percent all across america Cost of living increased … and your rent already increased twice … brbrWhen if you bout a home in your budget you have 275 and same payment for 30 years … and u could have rented it out if you didnt want to, sell it if you want and get the Equity … these ppl want you to own nothing and be happy … while keep paying for their dreams
Comment from : A Z

In the US, on average, homeowners have 40X (!) the net worth of renters
Comment from : Roger Rouse

Need land value tax
Comment from : Nicholas A

as much as I understand this concept can't help but want to own a home; it's been engrained into me
Comment from : Awoken Entertainment

WEF
Comment from : MO Ally snackbar

Who are the Rothschild's? 🤔
Comment from : js1112111

I thought it was artificial scarcity if a fundamental human life need like shelter that was so profitable and reliable for home owner enterprises
Comment from : André Oliveira

(::) economist(: hey
Comment from : Tea Tevin Ponder

I have given up on house ownership it keeps getting higher and higher in pricing, yet wages are very hard to increase
Comment from : Sean Shingatok

No Home ownership is the only way for the average person to build wealth in America brJail the bankers and liquidate hedge funds
Comment from : Cam Adams

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Comment from : yegfreethinker

Funny how this aged after a pandemic
Comment from : JackOfSomeTrades

More "You will own nothing and be happy" claptrap
Comment from : Fred Garvin

This was not a video against home ownershipit was an argument against big government Does anyone alive still want big government?
Comment from : Ebony Penguin

These silly millenials wanting to own their own home Would you not all live in the middle of a field like sheep? Alternatively, you could have no pension because all of it will go towards rent
Comment from : Gargan

Blackrock propaganda
Comment from : JiveChip

It do mean private property with class relation will bring end of capitalism and that is why this conflict is abolished in marxist economics
Comment from : TANUJ AADITYA

Nothing better in capitalism as it will come conflict with majority and much of its development like presently automation and robotics being useless,for fundamental needs the decisive being proletariat as Engels correctly said,the abolition of anti thesis between town and country is utopia just like abolition of anti thesis between capitalist and wage workers
Comment from : TANUJ AADITYA

How can they say that renting or owning is the same on the long turn? It's exactly when It starts to make a difference! 20 years of rent or 20 years of mortgage and owning property lives you in the end in two completely different situations: one you keep paying rent after 20 years, the other you just have the property charges or you recover most of your money if not more by selling The only dangerous thing in England is the changing rates of the mortgage We don't have that in France Not at this level, so there is absolutely no hesitation I own a house in France, and I rent in London, can really see the difference
Comment from : Sophie Garbisu

What if you are single and alone with no siblings, is it better to rent or buy a house?
Comment from : RHUYI SIA

죽어도 롯데
Comment from : Cho Hyunchul

For example, the situation in Spain is that in a certain way you are forced to buy a ownership, because the rents are very expensiveThere is no control on rent increases
Comment from : Elena Cortés