Single and Struggling: Housing in Crisis | Real Estate Market Update w/ Martin Perdomo

What if the tightening credit standards in commercial real estate could reshape your investment strategy? Discover how the Federal Reserve's latest survey reveals a shifting landscape, with larger banks still catering to multifamily housing, while smaller banks face declining demand. This episode of Wealthy AF, hosted by Martin Perdomo, unpacks the challenges in securing funding for new developments, emphasizing a more cautious and stringent lending environment. Equip yourself with the knowledge to navigate these changes and explore new investment opportunities.

Housing affordability is more than just a buzzword; it's a critical issue affecting millions, especially singles and divorced individuals. Uncover the striking disparities highlighted by a recent Redfin survey, where nearly 70% of singles are struggling with housing payments, compared to 52% of married people. Martin delves into the sacrifices single renters make, from skipping meals to paying significantly more in cities like Washington DC. The episode advocates for policy changes and innovative housing solutions that cater to single-person households, urging industry professionals and listeners alike to join the call for reform.

Transcript

Speaker 0: 0:00

Welcome back to Wealthy AF, the podcast where we dive into personal development, entrepreneurship and investing to help you build wealth and take charge of your future. I'm your host, Martin Perdomo, and today we've got two critical updates in the world of real estate and housing you won't want to miss. Let's kick things off by talking about how credit standards for commercial real estates have tightened in the fourth quarter of 2024. According to the Federal Reserve latest Senior Loan Officer Opinion Survey, or SLUS, a modest rare of banks have tightened their lending standards for constructions, land development and non-residential loans. However, multifamily loan standards largely stayed the same. Here's where things get interesting. Larger banks are still seeing some demand in key sectors like multifamily housing and non-residential loans, while smaller banks report weaker demand across the board. It's a mixed bag depending on where you're looking and who you're borrowing from, but the bottom line is clear it's getting harder to secure funding, especially for new developments. For those of you keeping an eye on CRE investments, the single and more cautious lending environment tightening credit standards mean that, while opportunities for financing are still available, the terms are going to be tougher. So what's the takeaway here? Be prepared to navigate stricter requirements if you're planning to invest in commercial real estateyAFai. We're constantly updating our members with the latest news, tips and strategies to navigate the real estate landscape. Don't miss out and sign up today. Now let's pivot to something sobering here, Some sobering statistics about housing affordability in America, particularly single and divorced individuals.

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A recent survey by Redfin reveals that nearly 70% of single people struggle to afford their housing payments, compared to 52% of married people. That's a staggering difference. It turns out that being single or divorced significantly increases the financial burden of housing. Why? Because single people are typically shouldering the entire cost for themselves, without the advantage of dual incomes like many married couples. For instance, in Washington DC, a single renter pays nearly $12,000 more annually compared to someone who splits the rent with a partner. Beyond the dollars and cents, single people are also making real sacrifices to keep up with their rent or mortgage payments. According to Redfin's findings, 21% of single people and 27% of divorced or separated individuals report skipping meals just to make ends meet, compared to only 14% of married folks. So what does this mean for the housing market? Well, the sky-high home prices and rents that have surged over the last five years. It's clear that singles are feeling the squeeze the hardest.

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For those of you in the real estate industry. This could be a signal that zoning laws and policies need to adapt to cater more to single person households, with options like single room housing or accessories dwelling units becoming more critical as affordability worsens. Now, this has been a problem since 2020, since the pandemic, this housing affordability has been an issue, and if you've been listening to this podcast, I've been talking about this now for years. There needs to be a fix, and it's guys like us and like myself in the industry and listeners like you that can fix the problem and find solutions for this affordability issue in our country. And find solutions for this affordability issue in our country. If you're ready to turn your goals into gold, you're in the right place, Because being broke was never the plan. Let's be wealthy. Af meaning wealthy and faithful together. And that's a wrap for this week's real estate market update Peace out.