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- [00:01]
Daniel Fauch
Welcome back to another episode of Real Estate Without Borders. I'm joined by the one and only Daniel Fauch. And today we have a really interesting episode and we're going to cover how home prices in the US are up 4.5% year over year, but almost no one's buying. And we're seeing inventory at historic lows, mortgage rates at near 7%, and somehow these prices are still climbing. So what's really happening? Are we actually in a market that's cooling or are we just propping up prices with low supply and builder incentives? So in this episode, we're going to break down the real estate in the US Housing market kind of state by state and go by and go through the winners and the losers here. I'm excited for this one.
- [00:44]
Unnamed Co-Host
Sounds good, man. I think the, you know, the prices being up thing is interesting because you really only see this stuff on a year over year basis. So, you know, prices could already be falling, but then you don't really, you don't really realize that they're, they have fallen yearly until like a year from now. Right. And I think that that's kind of the case. I think that, you know, prices are up year over year, but they're probably down for the last couple of months.
- [01:10]
Daniel Fauch
Right.
- [01:11]
Unnamed Co-Host
And now you've got even, you know, you've got the Zillows of the world even saying that they project that house prices are going to fall. I don't really know what, you know, policymakers could do to fix this. But this comes from Lance Lambert from Residential Club, which is like a really great, like analytical blog on our analytical news publication on, on the housing market.
- [01:32]
Daniel Fauch
But what a handful.
- [01:33]
Unnamed Co-Host
A couple of.
- [01:34]
Daniel Fauch
Lance Lambert.
- [01:36]
Unnamed Co-Host
Yeah, it's a great one, sure.
- [01:37]
Daniel Fauch
Unreal. I need to meet Lance.
- [01:39]
Unnamed Co-Host
Sounds like a superhero. So here's a couple of projections from Mozilla's perspective. This is city by city because you're, you're going to do state by state. But you know, they have San Jose expected to go minus 4.8% year over year. Phoenix minus 1.5, which, you know, we just talked about that in our last episode about how Canadians are selling a lot of property in Arizona. You know, do we think that that's going to have an impact? I don't know. Austin minus 4.1, New Orleans or Nolans minus minus 7.6%. Great city. Love that city. I don't know. Wonder what's going on there. Then you've got like random places, Rochester, they expect to go a lot of western New York stuff. They're expecting to go up 1.8% probably because that's part of the GTA, right? Part of Canada, basically. Buffalo. Yeah, Buffalo's the cheapest city in the GTA. Milwaukee minus 1.2%. So these are just a couple from the map that he posted. But it is interesting that you know that, that Zillow even is turning bearish on, on, on the housing market now.
- [02:45]
Daniel Fauch
And I know this is off topic and we're already, we always kind of jump around, but can you cover why? What you meant. I saw your posts about Zillow and Redfin no longer advertising off market listings.
- [02:58]
Unnamed Co-Host
The agents were. MLS has wanted to have the ability to publish listings that would only go on MLS like or like kind of like exclusives. Like MLS exclusives. So agents could kind of try and generate the leads and whatever. And they basically said if you do that for that listing and then later decide to make it a non exclusive, it'll never be seen on Zillow. So it's either you get to put it on Zillow or like Zillow is like 70% of the search traffic on the Right. You know what I mean? So either you, you get so there. The boards were trying to take back some of the control, right? And the real estate profession was trying to take back some of the control. And Zillow basically said nuh and Redfin did the same thing, right? So they basically said, no, the listing's either public or it's exclusive. And it's, if it's exclusive, it's never going to be on our site. It's staying exclusive. So they, you know, you can make that decision if you want, but you're going to pay for it. You're in trouble. Right. I think there's, there's probably a way around it. Like you know, that would just be with that Realtor. An agent could cancel or, sorry, a client could cancel with that Realtor and then go list it with a new realtor if they don't want it to be exclusive. And you know what I mean, it seems like a hard thing for them to police. But anyway, that's kind of what they're, they're pushing back against the boards trying to, to take back some of the.
- [04:12]
Daniel Fauch
Control I got us to, to get us back on track though. Sorry, I had to ask that. I just thought these are all relevant things.
- [04:18]
Unnamed Co-Host
Whatever.
- [04:18]
Daniel Fauch
It's true. I got reasons, reasons for New Orleans. New Orleans real estate price drops in 2025 high insurance costs, Surging property insurance premiums, particularly in Orleans are A major driver. Let's see, cost per thousand dollars average 24 point, blah, blah. 82 average increase. Wow. Of property insurance. High mortgage rates, obviously increased housing inventory. 24% increase of inventory noted recently. That shift combined with fewer sales down 14% year over year. Let's see, average days on market 33 to 51. Despite the median home price of 340,000 in 2024. And let's see, prices dropped to a 7% high interest rates obviously declining buyer demand. One of the coolest markets in 2025, which we just talked about. Post pandemic market correction, which I think we're going to get into in this episode again, that's pretty much it. Natural disaster risks risks Louisiana vulnerability to hurricanes. Post hurricane Ida increases insurance costs. Oh, okay. Interesting. That's pretty much it.
- [05:26]
Unnamed Co-Host
Yeah. Yeah. I mean, well, hurricanes have been bad. When they had the really bad hurricane like a while ago, right? Which one? I can't remember the name of that now. But the whole city flooded, right? It was like. No, no. But no, this was like. It was all. I don't know, I gotta, I gotta figure out the year that that was. But the whole city flooded, right? Like they have like a levy. Like the city's technically like below sea level, not. Not the whole city, but like a portion of it. And so there's like a big levee and then the bit like got breached and water just. It was, it was not a good. It's not a good scene. So I, I think like a lot. So you're seeing this happening in a lot of markets in, in the US and this is an important thing to be thinking about around the world. Again, regardless of your opinion on climate and climate change and stuff like that, I would argue that the weather seems to be getting a little bit more wild. Right? Is that like that fair assessment?
- [06:17]
Daniel Fauch
Very fair, agreed.
- [06:19]
Unnamed Co-Host
So weather, climate. Not no climate, just weather. Weather's just be wilding out. We're going through a bit. It's angry, it's doing some crazy stuff, right? You know, you had the huge snowstorm in Buffalo, A bunch of people died. You got this huge hurricane that just happened in, in the US Weather, not climate, but weather related, disaster related. Insurance issues are becoming a huge factor for, I mean, wildfires too. Another one, right? So now, now all of a sudden a bunch of insurers don't want to insure properties. It's like if an insurer doesn't want to insure it, then a lender doesn't want to lend on it because there's no insurance that they're going to. If the house burns down or gets leveled by a tornado or whatever that they're going to. You know, they're going to be protected. And this has caused a big issue in liquidity of properties. So there's a Miami or not. Not Miami. South Florida. All of Florida, actually. I think is. Is the easiest way to think about this. That hurricane happened. A lot of stuff got in trouble, but so two things happened. So there's that one. So there's a bunch of areas in the floodplain that are uninsurable in, like, the Florida market. Then on top of that, there's also this whole thing going on with the. I've talked about this with you. Right. The condos, like, remember that building collapse? Yeah. So, okay, so the condos, there's a bunch of condo buildings now that are on what's called a mortgage blacklist. So lenders will not lend on them. So knowing that the majority of purchasers buy property with mortgages, you're in trouble if you're. If you own an asset that somebody can't get a mortgage on. Right, right. Like you, You've seen this in Toronto with the condos, where the fees are super high or whatever. Some buildings just. You can't sell.
- [07:49]
Daniel Fauch
Right, right. I'm trying to. No, yeah, definitely. I'm looking at like, some uninsurable areas, which. I didn't know that was a thing. Specific cities where it's a whole city where they won't. Okay, so example? Well, Miami and Miami beach, they face high flood risk.
- [08:06]
Unnamed Co-Host
Yeah. I was down there once for. For a cloud break. Like where like, basically like a cloud comes over and then it just pisses all the rain in one shot. All the airports are flooded. We got stuck there for like four days. Couldn't fly out. Yeah. All the airports were closed.
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Daniel Fauch
So, I mean, that. That also happens in other places too, not just Florida. So maybe this is happening in. In Orlands as well.
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Unnamed Co-Host
Well, yeah, it could be. That could be a big issue. Right. That could be a big reason why, you know, in Florida's like, there's a lot of money there. Right. So it's, you know, some people, you know, that you could buy away a lot of that problem where it's like, hey, yeah, okay, I can't get a mortgage on it, whatever. I'm just gonna buy a cash. Right. But like, New Orleans is not that kind of market. Not as much so as. As Miami or a lot of South Florida.
- [08:48]
Daniel Fauch
Right. I got here, though. So what is the. It's The Fannie Mae blacklist. Fannie Mae, a government sponsored enterprise, basically. That's like the. What would you compare Fannie Mae to in Canada? Right?
- [09:02]
Unnamed Co-Host
Kind of. Yeah.
- [09:03]
Daniel Fauch
Just so for our Canadian listeners. So this list identifies condos and buildings that are ineligible for Fannie Mae backed conventional loans due to financial, structural or operational issues. We have that in Toronto too, where there's a lot of like issues within the, the corporation, the condo Corp. Or there's big red flags where CMHC won't lend. It happens in Canada too, in Toronto. I don't think this list is actually public knowledge. It's more so behind the scenes. I think like a lot of lenders have access to this, but I don't think it's a public list.
- [09:35]
Unnamed Co-Host
It says top 10 states with unsellable condos. Top 10 states with the most condo projects, like blacklisted by Fannie Mae. Florida, 1300, 1300. Georgia, 160. California, 695. Texas, 165. Colorado, 210. Illinois, 141. New Jersey, there's wilding out up there, 151. And New York 129. There you go.
- [10:07]
Daniel Fauch
Yeah, I saw it says, I got. As of March 2025, there's about 5175 condo developments nationwide, up from 1700 in May 2023. That's 191% increase. Florida has the most with over 1400 buildings. This says 48% of which are in South Florida. Crazy. The list was historically confidential access accessible only to lenders, leaving owners associations unaware until a loan denial in 2024. Yeah, interesting. I know. And then Fannie Mae began providing access to condo associations via web based tool, but it's not fully publicly available as of yet. Interesting. I think it's the same in Canada though. You wouldn't know. You wouldn't know. A condo is un. Not being like unloanable until you're in a conditional period of a status certificate review.
- [10:57]
Unnamed Co-Host
Realistically, yeah, that's pretty messed up like that. Like that's a tough position to be in. Imagine you're like literally you're trying to sell your condo. You don't know. You're kind of one of the, you know, one of the first people to sell since this new change. And then basically all of a sudden you're like, you know, and maybe your realtor doesn't even know. Nobody knows. Right? I guess until. And then you go to list it, buyer tries to buy it, and then all of a sudden they're like Nah, you and everyone in your building are now screwed. Right?
- [11:27]
Daniel Fauch
This happens all the time. This happens all the time. I just had it happen in at. I won't say the address, but one of my clients, they had a special assessment. Each individual owner was. Had a $35,000 payments.
- [11:40]
Unnamed Co-Host
Okay, let me do, Let me do a definition thing now. You'd explain a special assessment to me? No, because this is, this is what's happening with all of these Florida condos. Basically what happened just like the one collapsed in Surfside. And then basically they said, okay, all of these places, all of these old condos could. This could happen to. So we need to run these inspections on all of them between now and then. And then, basically they've started doing that and it's yielding all of these big expenses that need to be covered. What happens when that happens?
- [12:11]
Daniel Fauch
Well, what happens so is it does. Each individual building will. Is run like a corporation for the most part. And there's a reserve fund which is like the access of funds because every, every individual owner pays into an HOA or maintenance fee, whatever. But if they come back with a special or with this, you know, report that finds there needs to be a major repair, if there's not enough money in the reserve fund or the reserve fund will be like empty after this, they'll put a special assessment on every unit owner. And based off of the square footage you own, you'll be required to pay back a lump sum of whatever the building needs. You know, I've seen upwards of like hundreds of thousands of dollars. Yeah, there's.
- [12:47]
Unnamed Co-Host
There's a. There was a list of properties. I'll try and use GROK to find it on X. But there was a list of properties where the special assessment cost actually exceeded the value of the condo. Yeah, there's like. And there's like. Yeah, so let me see if I.
- [13:04]
Daniel Fauch
Can find that where in South Florida.
- [13:06]
Unnamed Co-Host
There's like all over the place. But yeah, I guess a lot of it's from South Florida. Where the, where this is. These structural issues are becoming a problem.
- [13:13]
Daniel Fauch
I think that should be. Again, we're kind of like off topic a little bit, but that should be.
- [13:17]
Unnamed Co-Host
Not really. This is the topic now. This is because we're figuring, we're trying to get to the bottom of why some of these values are plummeting.
- [13:23]
Daniel Fauch
Right, right. It should be public information, I feel like, because this is why working with a professional obviously is super, super important. I don't. You know what? Now that I'm, I'm actually curious, I would Assume there would be some sort of conditional wording that would be the same in the US as we have in Canada where it's like we put wording into the agreements that would, we wouldn't. It'd be a conditional period based off of a status certificate review in Toronto or I think it's Canada. But in Canada a status certificate shows the financial health of the building. I would assume that has some of that stuff in the US But I wonder how, you know, open there, because that, that, that's what a, what a disaster that would be if you did not have that conditional period. You bought a property and then now you realize you're either walking into a huge special assessment or you can't get even worse, you can't get funding or, or lending to that property. That'd be disaster. I'm assuming that it has something like that in the US I'm actually going to look that up and find out now. But yeah, if that's like, I mean, it says here. Where did it say that? How many percent of people or buildings in. In my. 48 of these buildings are.
- [14:31]
Unnamed Co-Host
Are.
- [14:32]
Daniel Fauch
Of the entire 50 or 5,000 condo developments nationwide, 48 of them in South Florida are uninsurable. And you're not able to get a loan on these properties. That's a big number. That's not, that's not little. But I mean, and that obviously kind of ties back into the affordability of it. Right. If you're. Or even inventory. Because that will sit on the, sit on the market forever. No one's going to take that on. You know, it doesn't make any sense to you. So that helps with. Or that's, that's a direct correlation to the affordability challenges and then ties directly into the low inventory or, sorry, maybe even high inventory if stuff is sitting on the market.
- [15:11]
Unnamed Co-Host
Well, yeah, like basically you've got a bunch of sellers who thought their condo was worth 400k and now it's worth whatever. Okay. Less the special assessment, probably. Right. So like there was an example that I found on Grok that was one post mentions a $134,000 special assessment on a condo purchased for 190,000. It doesn't exceed the property value, but it's pretty close. Right. Like basically you'd get wiped out if you, you know.
- [15:36]
Daniel Fauch
Right.
- [15:37]
Unnamed Co-Host
And so again, if you, you know, buyers are just going to be reluctant to buy those units. Right. So, and then now all of a sudden you basically have to sit on it. You have to pay the special assessment. You know, in a Lot of cases you can't finance that. So you're going to have to come up with some sort of, maybe the condo Corp can finance it to you or something. So I mean these are basically, you basically have a handful of condo buildings that are, are functionally illiquid. Like there's no, there's no buyers and everyone in the building is basically a seller because the units are no longer worth anything.
- [16:08]
Daniel Fauch
Right.
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Unnamed Co-Host
So that's. That's problem. That's a problem. And that's not even the problem. Right, let's. So you know, this has created this, this inventory pile up. Like the other piece is mortgage rates.
- [16:17]
Daniel Fauch
Right.
- [16:18]
Unnamed Co-Host
So we talked about this in the last episode a little bit. You asked me about yields and stuff. Well, you actually asked me about the dollar, but I went on about yields. But you know, a lot of people are speculating that Trump's trying to get the bond yield down on the, on U.S. government bonds, which mortgage rates are kind of a function of loosely. And because the yield's going up now, mortgage rates are up at like, you know, they're hitting the sevens again for a 30 year mortgage. Right. So mortgage rates being high has been prohibitive because it's not helping. And now you're getting pow and Trump kind of like arguing with each other. Right. Jerome Powell runs the Federal Reserve. You know, they're. Trump obviously wants rates lower. He's a real estate guy. He wants, you know, he wants the debt market to be cheap to stimulate the economy through real estate. That's pretty. I think his MO is pretty clear on that. Powell's not sold on the idea probably because the USD is already getting sold off and reducing rates further will put further downward pressure on, on the US dollar. So I think mortgage rates are playing a big role too. Like why, you know. Yeah, people can't afford it. There's a. Let me see if I can find. There's a couple. Yeah we talked about.
- [17:27]
Daniel Fauch
I'll find.
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Unnamed Co-Host
There's a couple posts. Yeah, there's a couple posts. I'm gonna put them up on, on how housing affordability is like super bad right now because like your marginal buyer is like the first time buyer, right. Or like the own, the owner occupier, not the investor. Let's see why they're having such a hard time buying and I'll show you.
- [17:42]
Daniel Fauch
Actually you sent me, I'm gonna pull it up. Let's see. We basically just send each other a bunch of different links. It was generational, this one. The housing market sees a generational shift or A plot twist. The return of boomers, the Generation born between 1946, 1964 to the top of the buyer demographic, signals a changing dynamic in housing competition. Cash buyers, largely boomers, are outmaneuvering younger bidders who are reliant on loans. So that pattern is kind of like reshifting how people.
- [18:17]
Unnamed Co-Host
Yeah, let me. Yeah, I'll pull this one up.
- [18:21]
Daniel Fauch
Ours and sellers generational trends report 26% of younger boomers and 16% of older boomers were home buyers, compared to 12% of younger millennials and 17% of older millennials. It's kind of crazy.
- [18:35]
Unnamed Co-Host
Yeah. The craziest part is when you go, it says, while millennials still represent a large share of first time buyers, their purchasing power is being diminished by economic pressure. As of 2024, the median age of a home buyer rose to 56 compared to 31 in 1981. This rise tracks with increasing home prices and borrowing costs. One of the starkest divides in buyer behavior lies in financing. More than half of older boomers paid for their homes entirely in cash. Among millennial buyers, more than 90% required mortgage financing, according to Nars 25 Home Buyers and Sellers, Generational Trends Report. So, I mean, this is the big issue, right? Is that, is that young people are using debt and, and this has made it, made it difficult for them because debt is expensive right now.
- [19:15]
Daniel Fauch
Right. Boomers have the capital because they've owned these properties for so long. So it's like they're the only ones that can maybe even sell and still survive, you know, because they're selling their house at such a huge profit that they don't need that loan to get into the next property. That's the thing. It's like the first time home buyers, they're relying strictly on a loan because they have no liquid equity. They're usually probably purchasing based off, well, they are purchasing based off of just straight savings or money from the parents.
- [19:43]
Unnamed Co-Host
It looks like younger boomers are the biggest by a large margin, the biggest buyers and sellers in the market.
- [19:52]
Daniel Fauch
Interesting.
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Unnamed Co-Host
Interesting. I'm screenshotting this and post this.
- [19:56]
Daniel Fauch
There's a tweet right there.
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Unnamed Co-Host
Sick tweet.
- [19:59]
Daniel Fauch
That's a good one. I'm always trying to send you. I'm trying to. I know you're on Twitter just as much as me now, but. Well, I'm on much, as much as you. I mean, because you showed me Twitter, but I'm always trying to find cool tweets that I can send them to you. So I, I give you the most up to date information for you. Whenever I see a cool chart, I'm always like, fosh. I'm on Twitter. You see my tweets, dude?
- [20:21]
Unnamed Co-Host
Yeah, yeah, I know I did. They're lighting it up. You get getting some traction there or what? No, it's a hard platform to grow on, to be fair. Very.
- [20:28]
Daniel Fauch
I'm just strictly using it for my Instagram posts because it looks cooler than me just writing the words.
- [20:33]
Unnamed Co-Host
Right, right.
- [20:34]
Daniel Fauch
That's it. I'm just trying to. I'm trying to bring. I'm trying to take the. The, like, doom and gloom and make it a little bit brighter for Realtors, because I know a lot of Realtors are nervous right now, so that's okay. Okay. Do you want to cover, like, state by state price changes? We can go. I can go over, like, the top gainers.
- [20:58]
Unnamed Co-Host
Yeah, let's do it.
- [20:59]
Daniel Fauch
All right. The top gainers and state by state price changes. The Northeast dominated price growth with Rhode island increase of price of 12.8%. Increase of price by 12.8%. New Jersey 12.2. Connecticut, 11.5. Massachusetts, 10.2. In the top five, alongside Wyoming. High demand and low. Okay, that makes sense. High demand, low inventory, and metro adjacent areas drove these increases. That's not obvious, though. I feel like.
- [21:31]
Unnamed Co-Host
No, I think a lot of, like, the, like, even when you look at, like, western New York, like, New York's up 7.1%. A lot of it's like western New York. So it's like your Buffalo, like, or Ohio is another one. Right. Like Ohio up 6.7%. They're pretty affordable markets.
- [21:45]
Daniel Fauch
Right, right, right, right.
- [21:46]
Unnamed Co-Host
And so a lot of. I think you're getting, like, a lot of those young people who are like, ah, I can't afford a house else. So I'm just going to go to some of these states that, you know, where you're seeing, like, Buffalo's population's been contracting for like, 10, I don't know, like, several.
- [21:58]
Daniel Fauch
Right.
- [21:59]
Unnamed Co-Host
Hundreds of years. Right. So go to some of those markets where, you know, you're growing, you're not competing with more and more people. Right.
- [22:07]
Daniel Fauch
You.
- [22:07]
Unnamed Co-Host
You look at the areas that are seeing the biggest losses. I mean, for the most part, they were the ones that were popular or expensive. Right. Arizona is expensive. Florida is expensive. Colorado is expensive. California is expensive. You do get kind of your. Your Midwest, like, flyover Louisiana and Mississippi, which those are. I think Mississippi is the cheapest in the country. It is. West Virginia is the cheapest in the country, actually, really north.
- [22:36]
Daniel Fauch
So Northeastern hotspots Cities like Camden, Syracuse saw double digit growth due to. Yeah, okay, so it's the same. Everyone's just like, okay, so everyone's seeking affordable metros near like the major city hubs like New York. That's the same thing that's happening in Toronto. People can't afford the house in Toronto, they move to Bowmanville or they move. You know, that's.
- [22:53]
Unnamed Co-Host
Yeah, this happens everywhere. Drive till you qualify.
- [22:56]
Daniel Fauch
Right?
- [22:58]
Unnamed Co-Host
Drive till you qualify.
- [22:59]
Daniel Fauch
Cooling Sunbelt markets like Florida, they saw 6.1%. Is that right? 6.1% decrease increase. I can't be right.
- [23:09]
Unnamed Co-Host
No. Yeah, I wouldn't. This, this is showing it as decrease 2%. But yeah, it really varies based on what increase month over month. Like. Yeah. And what, what markets you're. You're looking at and what, what time frame you're looking at. Right. Is it year over year? Is it month over month? Is it. Right.
- [23:26]
Daniel Fauch
They keep talking about Washington too, because I think Washington for a while there was a hot topic on Twitter because they were saying the Washington market was in shambles.
- [23:33]
Unnamed Co-Host
Washington D.C. yeah, for sure. For sure. Yeah. I think a lot of these markets are really going to suffer. Like there's no, there's no arguing that they're not right. Like they're just. Yeah, it's gonna, it's gonna get bad.
- [23:45]
Daniel Fauch
I think it's also too like one thing that we, A lot of the remote work maybe is. Is over or not over, but less popular.
- [23:52]
Unnamed Co-Host
Yeah. Return to office has been big. You are seeing like a lot of like your New Yorks and la's are really ramping up because people are going back to the office and they have to move back to some of those places. Right. Where like during COVID you might have moved to Florida and you know, you had to go to the office every now and then you fly three hours up the coast to New York, you know, and a lot of the banks, like banks were moving to like South Beach. You were starting to see like a lot of the like investment banks setting up offices in Florida. That's gone. They're all back in New York again. So interesting.
- [24:25]
Daniel Fauch
It says a couple other points here like obviously inflation connection zoning and regulation. Strict zoning laws in states like California, Hawaii limit multifamily housing. Is that true?
- [24:34]
Unnamed Co-Host
Yeah, yeah. Like most of the US is, is very much limited by their, the ability to develop multifamily. Like it's exclusionary zoning. Right. So it's basically like all single family seeing some areas like there's some, some markets. Was it Cambridge, Massachusetts? Where they basically upzone for. That's, that's where Harvard is.
- [24:55]
Daniel Fauch
Okay.
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Unnamed Co-Host
They've up zoned and it's becoming like a big case study. I'll see if I can find the article on it.
- [25:00]
Daniel Fauch
Are they allowing this? Is, are they allow, you know, like, are they allowing like auxiliary units in the backyard or anything for, for California homes?
- [25:08]
Unnamed Co-Host
No, no, not really, to be honest. Like you're not seeing that. You see, you see it more in like dense areas, but you still have to like go through a full process. Like you're not seeing like fast track, missing middle like we've seen, we're seeing in Canada. I think they'll get there, to be honest with you. I think that they'll get to the point where, I mean again like, I actually think we'll see it even during a Trump presidency where like, you know, the guy loves real estate and real estate development. He's literally just going to be like, oh, like let's multiplex everything. Right, Right. But hoas and stuff like that in the US like you're, you know, that you think about in Canada, like the stuff that people have to say about like multiplexes and like you know, 15min cities and all this stuff, right?
- [25:42]
Daniel Fauch
Yeah.
- [25:42]
Unnamed Co-Host
And then, you know, imagine what that's like in the US there's a lot of reluctance to, to or there's a lot of government push back. Right. Or, or sorry, public push back to, to try and get policies like that done. I was trying to find this, this Cambridge thing, but we can't.
- [26:03]
Daniel Fauch
I'm looking at some stuff about rent to own too. So rent or rent versus ownership, but like rising rents in some markets, like Dubai is up 60% since 2020, in contrast to the US declines. LA is down 4% affecting decisions to rent or buy, which is also a part of the issue of, of people getting into the market because rent's dropping. So people are going for that option because it's a lot cheaper, which is interesting actually. I didn't know rent was that high in Dubai, but I guess it makes sense.
- [26:32]
Unnamed Co-Host
It would make sense, yeah. Ton of demand, really expensive. Everything's like brand new build. So it's, you know, it's all basically expensive. Right? Like it's not like it's older aged housing stock that's, that's depreciated or whatever. So as soon as it's new, as soon as it's new, you know, the cost goes up. Right. So like Dubai, I mean majority of Dubai was built in like what, the last 20 years, 10 years yeah. On this note, this is this missing middle housing thing for Cambridge, Massachusetts. They've basically done, like, the whole thing. I think you're going to start seeing this all over the. All over the US to be honest with you. It'll probably start in more left areas, politically left areas. So, like, probably expect it more in your blue states. But this will become a solution to the housing crisis. It's cheaper to build, faster to build. It's nice for cities. We've determined that, you know, people in the Western world want to live in cities. Most people in the world want to live in cities. I think, like, it's just. I think. I think as a human nature, we want to, like, live in these, like, little, you know, what do you call it? Like, tribes.
- [27:38]
Daniel Fauch
I was gonna say the word was on my tongue.
- [27:41]
Unnamed Co-Host
Yeah.
- [27:41]
Daniel Fauch
Interesting.
- [27:43]
Unnamed Co-Host
Yeah. So I. I'm interested to see how this whole missing middle thing moves across the U.S. we'll do a whole episode on it because I don't want to. I don't want to stretch this one out and bounce it around too much. Anything else that you want to mention on. On why some of these places? I guess there's a couple other ones. Right. Zoning. You got to. Tariff impacts.
- [28:00]
Daniel Fauch
Yeah, I mean, we've done a lot of episodes on that. I think tariffs are kind of the bigger.
- [28:05]
Unnamed Co-Host
The biggest story seems to be so far. Like, tariffs is like, people like, you know, travel people maybe selling properties in some of those, like, vacation markets. So, like, again, your Florida's Arizonas seem to be the ones that are most impacted.
- [28:18]
Daniel Fauch
Yeah, I think we covered, like, all the major points and some extra ones as well. This is a good episode to get an understanding of who's winning, who's losing, and why they're winning and why they're losing. And again, I think it's super cool because you see a lot of these, the same trends across the world, not just Canada or the US which is cool. It's cool to see the connections.
- [28:39]
Unnamed Co-Host
Yeah, 100% cool. Okay, we'll wrap it up there. Thanks for listening. Please follow the show. Press the subscribe button on whatever platform that you're listening to this on. Send it to a friend, leave us a review, leave us a comment, whatever. Give us an episode recommendation and click the links in the show notes. Check out our brokerage, the events that we're going to be running. If you want to get involved, you want to learn how to. How to buy and sell real estate all over the world rather than just in the country that you live in. And this isn't just for people in Canada or the U.S. or Mexico or whatever. This is like if you live in Dubai and you have a real estate license and you want to buy and sell properties in the U.S. you know, we're going to help you learn how to do that. We're building out a system to make it possible for people. So see you next time.