➡ The cost of housing has been driven up by various factors, including low interest rates during the pandemic and the actions of institutional investors. The speaker believes that institutional investors, who buy up properties and control the market, are a major issue. The Trump administration has implemented policies to reduce housing costs, such as cutting regulations and focusing on immigration issues. However, the speaker warns against buying homes from large developers due to their subpar quality and advises buying land in non-HOA neighborhoods and building from scratch.

➡ The speaker discusses the complexities of the housing market, attributing rising prices to factors like immigration and institutional investors. They caution against investing in certain areas like Florida due to potential issues like high HOA fees and structural problems. The speaker also differentiates between high earners and net worth millionaires, explaining that the former have more financial flexibility. They emphasize the importance of generating revenue through assets or skills to maintain a comfortable lifestyle, regardless of market fluctuations.

➡ Anton believes that market corrections, like the current one in the stock market, are great opportunities to buy more assets like real estate, stocks, and cryptocurrency. He isn’t worried about losses because he sees them as chances to reduce his tax burden and increase his net worth. He emphasizes that understanding how to make money, especially during tough times, is key to becoming richer.

JD Vance did a speech and he spoke on or at least this is what the title of the speech was. He spoke on housing prices and what is driving them up in the real estate market. We do have stock club coming up soon and you might want to tap into the Patreon and look at the last block club. It was pretty incredible. And I broke down some really, really great information for you guys. Make sure you hit a like for the algorithm. Subscribe to the channel and turn your notifications here. Is JD talking that talk as usual? Let’s get into it.

Thank you all. Thank you. Please, please fast forwarded a little bit. Joy the town because it is your city. It’s never easy to come here. And I also appreciate them are more regularly than they do their federal government. And that’s the way it’s supposed to be. That’s the way the Constitution sets sets it up. We know that good government starts at the local level. So while those so and we do that whether we want to or not. So many of the issues that you deal with, of course implicate local issues, but state issues and federal issues as well.

And one area of shared interest between President Trump and I think every single person in this room is the importance of providing good housing for our citizens at a reasonable and affordable cost. And I have to say I’m hard pressed to think of a time in my 40 years of life where it’s been so hard for normal American citizens to afford a home. Even renting a home has become a challenge or worse yet, fallen completely out of reach for so many of our families. Second brother says, dude, you are such a shield, man. Have you seen your avatar? Have you seen your profile? Your profile picture? Dude, you ran that through.

Did you call me a shield? You a grown man with gray in your beard and you called me a shield? Look at your zesty profile picture, bro. I don’t know, maybe you meant it differently. Anytime I see a grown man say, you are such a such. Dude, you’re dude, you’re such a shield. What does that even mean? And let me get back to J.D. vance. I can’t be dealing with y’all sassy dudes. I was talking with a relative a couple of years ago and she just made kind of an offhanded observation. As a younger person than I am, she was looking to buy her first home and just mentioned that when her parents were growing up they could afford a nice home on a single middle class income.

And she was sort of mentioning this as a sorrowful thing. She was sad that that wasn’t true for her generation. And I think all of us in this room, certainly including me, have a little bit more work to do, I think, to make housing more affordable. I want to talk about that because I think it’s the issue where our interests in some ways are most aligned with the people in this room. I read recently that the average income it takes to buy a new house is nearly two times the average salary of your typical American family.

Not the average American worker, but the combined incomes of a husband and wife. And that’s just not acceptable or sustainable in the United States of America. We want Americans to be able to afford the American dream of homeownership because we know that when people own their homes, it makes them a stakeholder. It makes them a stakeholder in their neighborhoods, in their cities, and ultimately, of course, in this country that all of us love so much. We want our citizens to feel that investment in their own country. And it’s hard, it’s hard to feel that investment if you feel like you can’t even own a slice of it, even if that’s what you want to do.

Now, on a more basic level, we don’t want people living paycheck to paycheck. We want them. We don’t want them to make trade offs between a trip to the grocery store and meeting next month’s rent. Because even if you don’t yet own a home, or even if you don’t ever want to own a home, the knowledge that if you work hard and spend wisely, eventually you’ll be able to afford a nice place to live that goes, I think, a very long way to giving people a sense that they belong here and a sense that they have a stake in the future.

What is the American dream today, y’all? I think personally that it has changed. I don’t think that the American dream is the American dream of yesteryear. I know that the American dream for women used to be to get married and to have a white picket fence and maybe a dog and two or three, maybe four kids. For a lot of men, the dream used to be to find a wife or a person that loved them, to have strong kids, family, community, to ultimately become a pillar of their community and to have home ownership. And there were other things that was a part of that.

I know coming from Detroit, and I know that there’s different cultural norms depending on where you from and what part of the country that you’re in. Coming from Detroit, the dream used to have a stable job, maybe get a pension retire after 30 years, have an old school in a car and then a stanking Lincoln or a Cadillac inside of the, inside of the garage. That used to be the dream. One old school and then one luxury car. And then you, maybe you’ll have a little sports car on top of that that you want to take in on that Sunday drive.

But the old school, you only pulled it out on the dream Cruise, you only pulled it out on the weekends. And then the luxury car, you kind of take that on the under, that’s your daily. And then you get a sports car. What is the American dream? Now? I’m not sure if anybody knows or can add a broad scale because I know that we have our own individual goals. But what is the American dream? Meaning that the thing that is marketed to most Americans that would then drive you to be successful, whether you in corporate America, start your own business, so on and so forth.

What is the American dream now? Now there’s some important reasons why that belief is dwindling among Americans today. And a lot of it, of course, comes from the historic inflation that this country has dealt with over the last four years. Now, under the previous administration, get a little bit political. The cost of a median price home in America more than doubled. And that was just in four years. And if your salary, is that true, the cost of an American home, a home in the United States of America, more than doubled in four years. The average home doubled in more than four years.

Pace with inflation and rise 20%, your buying power took even a bigger hit. And of course, if you think about this, if the price of a home doubles and the price and your actual salary doesn’t double, then you’re a lot worse off. And we know that most Americans did not see their salary double over the last four years. So it’s no surprise that home sales hit a 30 year low in 2024. Now, another reason for the elevating costs comes down to zoning. And the reality, as you all know, is that zoning is an area where federal authority is actually quite limited.

And I’m sure none of you want the federal government in the business of mandating how cities and towns handle local laws. And that’s certainly not what we want to do either. But I would ask everyone in this room is to be good partners with us and certainly partners with your citizens and think about how we can improve the cost of our, excuse me, the costs of housing for our citizens. And I think one of the ways that we’re going to have to do that is by being a little bit smarter about our local zoning rules. In particular, when I think about zoning, I can’t help but think about it without, of course, the communities that I know best, which are those that I represented in the state of Ohio.

And, you know, Columbus, Ohio, in particular, I assume we’ve got some Columbus people here. And, you know, Columbus is a boom town in so many ways. I’ve got, you know, relatives and family members who live there who love Columbus. It’s a magnet because it’s had so much economic development. But one of the things that I worry about when I look at a city like Columbus are, you know, Miami, which became a boom town during the COVID years, is. Is the unaffordability of housing. And we’ve got to fix that. If we actually want these places to be magnets, not just for jobs and investment, but also the dreams of our young people, we’ve got to actually make it easier to build homes.

And in particular, I think the city of Austin has done a pretty interesting job, because in Austin, you saw this massive increase of people moving in. The cost of housing skyrocketed. But then Austin implemented some pretty smart policies, and that brought down the cost of housing. And it’s one of the few major American cities where you see the cost of housing leveling off or even coming down. Now, the Trump administration has taken important, I believe, personally, and I’m gonna try to be as objective about this as I can, because I do like J.D. vance, and I do like what he’s saying, but I also believe that there are some other factors that go into it.

The title of this is he’s speaking about how illegal immigrants are also driving up the prices of housing. There’s several different factors that drive up the price of housing. During the pandemic, for example, when interest rates were super low. And that was a mistake, and a lot of people don’t actually want to go into that, but it was actually a big mistake for the Biden administration and for the Fed to actually cut rates as low as they did to continue to stimulate what was going on in the housing market. Because what the banks did was the banks made a lot of money off of the fees and people refinanced financing their home.

And yes, you did get low interest rates a lot of times, but for people that were buying new homes, you were also buying them above asking price. And I seen houses going for above $150,000 over asking price, no inspection. It’s a lot of people that’s walking around here, they can’t sell their house. They want to sell their house. They don’t want to sell their house because of the interest rates, but they got to sell their house because they can’t afford it and they house poor. And they don’t want to continue to live where they bought the house at, but they don’t want to get rid of it because interest rates are too low.

When they drove interest rates down to nothing, basically 2 to 3% in order to continue to stimulate the buying in the economy. Yes, banks made a lot of money. Yes, a lot of people paid for homes over asking price. Yes, you are locked into that 2 to 3% over the next 30 years. I don’t want to give nothing over to the bank. And so I don’t believe in interest at all for myself personally. But it did stimulate the economy. It kept money moving and then they issued those stimulus checks and so on and so forth. Right.

It made people entitled to work from home. But the real, the biggest problem for me personally, the biggest problem that I think that is driving up the cost of housing and making a nation a nation of renters is institutional investors. Institutional investors. That is the biggest, the largest and most impactful thing in my personal opinion that is happening to housing that is driving people and driving up the cost of housing. Because you have to compete with large organizations like BlackRock to then be able to purchase a home which they’re able to control the market because they control everything in the market and they’re driving off, driving up the cost of living and driving up the cost of homes.

If we’re going to institute a rule, if we’re going to solve for the problem, then you have to attack something around institutional investing. I don’t know what the situation is. I don’t know how you do it. I don’t know what goes on with it. But you have to solve for the problem of institutional investors buying up everything in certain cities, in certain towns and driving up the price of these houses. I believe that that is a large, a massive, massive reason because they were looking for protection in spaces that weren’t so volatile, such as the stock market or cryptocurrency, because those are places that have huge swings depending on which type, which companies that you invested in.

But real estate is very pretty stable. You can pretty much predict what, where real estate is going. And usually even if there is a correction in real estate, there’s always a bigger buying opportunity and you can generate more revenue while you continue to hold on to these properties. Institutional investors are a problem. That’s my personal opinion. Steps to make building cheaper and to boost the supply of housing. Now, of course, it’s going to take time, but this is a day one issue for our entire team, from the president on down. On his first day in office, the president issued an executive order making it a priority to bring down prices for new buyers.

Now, part of that will come from slashing needless regulations, which, according to some estimates, account for about 25% of a new single family bill. Today we’ve also seen Secretary Turner, our great Secretary of Housing and Urban Development. He’s working hard on this issue, cutting some of the Biden rules at HUD that hike costs and shifted decision making from local Governments to Washington, D.C. and secretaries Bergam and Wright and certainly Administrator Zeldin at the EPA are putting in important work to bring down the cost of energy, which is, of course, a critical input to the cost of building a home, to say nothing, of course, of human heating one and keeping its lights on.

But I actually want to focus on something a little bit different because I think this is one of the areas where what the Trump administration can do and has done is going to be one of the major drivers of bringing down the cost of housing. Now, local zoning regulations, the cost of energy, these things are about the supply of housing. How do we get more houses out there to be built? But I think it’s important to talk about the demand side of the housing market. And so much of what we’re doing in the Trump administration when it comes to the immigration issue is, is framed about law enforcement, about reducing fentol coming into our communities.

And that is true. That is a big part of why we’re doing what we’re doing at the border. Elena, if you are getting your home built and you want to make sure that you’re going with the local builder, that you’re going with a local architect, that you’re going with a local general contractor. Because if you are going with a large home builder, like a Lennar Homes, personally, I don’t like them Pulte homes, all of these large homes, they will skirt, they will cheat, they will cut corners. They build very cheap. They use very cheap materials, and then they paint them and then they put good hardware on them.

They’ll build. They’ll put up cheap cabinets and then put up paint, cheap cabinets, and then they’ll put deep, nice hardware on them. They do not use. Oh, my God. Listen, listen. I am a home builder myself, and so, you know, I share all of my knowledge inside of the Patreon and the quality of homes that they are building are absolute, in my personal opinion, is trash. And then they also create developments that then require you for to have HOAs. So just be careful is all I’m saying. Be very, very careful if you are building a home and if you’re going through a home builder such as those.

But when we talk Horton also, I don’t care for Dr. Horton either about housing. Look good on the outside, but it’s, it’s, it’s bad, it’s not nice. Why costs are so high. We don’t talk enough about demand. And one of the drivers of increased housing demand we know is that we’ve got a lot of people over the last three years who have come into the country illegally. And that’s something we have to work on if we want to meaningfully reduce the cost of housing. Housing too. Now, just, just think about this and listen, man, I don’t even want to give this type of information out, all right? I’m gonna reserve it.

I’ll just say in a general sense, y’all, gosh, I don’t want to do this because this is usually the type of talks that I have in Patreon, all right? I’m not gonna go into it deep. I’m not gonna deep dive into it and talk all about it. I will say stay away from hoas. I’ll just give you a little bit of general information. Stay away from hoas and stay away from large home developments. Stay away from cookie cutter neighborhoods that are all being developed that is sold by a major manufacturer of homes or a major developer of homes like Pulte Homes, Dr.

Holton, and our homes. Stay away from that. All right? Do not. Under no circumstances. I’m not saying it is bad, but I am telling you that the quality is going to be subpar and the value of those homes are not going to be. You’re better off buying land in an already established non Hoa. Non Hoa neighborhood and building your home from scratch. I’ll just leave it at that. I’m not going to give you no insight. I’m not going to talk more about it. If y’all want some more information, go and watch the live streams and the videos that we re uploaded inside of the Patreon.

I break it down line by line. I show you the, the documents. I show you exactly what I’ve. What I’ve spent. I tell you what my learned lessons is, where I fumble, where I got issues, why I’m building more houses and how I’m going to continue to beat the industry. And why I’m doing what it is that I’m doing. Stay away from these large developments, stay away from hoas, stay away from cookie cutter homes, stay away from large homebuilders. All right, might get in trouble for saying that, but I’m just giving you the game. If you allow 20 million people to compete with American citizens for the cost of homes, you are going to have a large and frankly, completely preventable spike in the demand for housing.

And that is what we, of course, have seen. Because while we made it a little bit hard to build, Toll Brothers, I heard was a little bit better. But Toll Brothers, in a lot of places that I see them being built, they build them in higher end areas. They still use cheap products and cheap materials, but people generally don’t have as many problems. I don’t hear as many complaints about Toll Brothers. I have heard some. I don’t hear as many complaints about Toll Brothers as I hear about other places. Places. All right. Homes in this country over the last four years, we’ve also unfortunately made it way too easy for people to compete against American citizens for the precious homes that are in our country to begin with.

Now, I’ll say this. It’s actually not just an American problem either. If you go to Canada, where because of their laws and regulations, they’ve seen a massive increase in the number of people who have come into their country. You go to the United Kingdom, you go across the world and you see a very consistent, consistent relationship between a massive increase in immigration and a massive increase in housing prices. And we have to be honest about that. Well, I see, I see. I shout out to Sarah. I see. I see one of our nice representatives out here.

So it looks like people are trying to interrupt Trump’s speech. I mean, Trump speech, J.D. vance’s speech, protesters and things like that. I actually had heard about this, but let’s continue on to actually, I guess continue to flood the country with illegal immigrants, making your communities and, and citizens unaffordable. But ma’am, with all respect, one of the reasons why we’re doing what we’re doing is because we want to make it more affordable for Americans to live. That is one of the reasons why we’re doing what we’re doing Now. Last week I visited the southern border and we decided to check in on what’s going on they there at the southern border.

And of course, like I said earlier, you often hear about immigration enforcement as about crime and about drug trafficking. And that is a big part of it. I was at Eagle Pass and I was talking to local border control down there and they told me that in just a matter of weeks their small part of the border had gone from 1500 daily encounters to less than 30. And again, that’s in a matter of weeks. That’s just a. I do believe that there is a large segment of places, especially on the west coast, especially over in California, where housing prices are out of control, really out of control, that the housing, the population of people and the amount of immigrants needing housing over in those places is one of the things that’s driving up the housing prices.

I don’t think that you can point to any one thing that drives up or drives down housing prices. I think that there’s a combination of things that determine what the housing price is or what the market is going to be. All right, you can point to immigration, you can point to institutional investors, you can point to weather, you can point to like, like. I’ll give you an example. I warned you guys years ago, I said do not invest in Florida, especially in these condos, right? Never ever, ever, ever buy a condo in Florida. If you are going to buy a place in Florida, I would just highly advise against it.

If you are going to buy a place in Florida, do not look at it as an investment property. All right, let me say it again. If you’re going to buy a place in Florida, don’t look at it as investment property. If you buy into one of these high rise buildings, meaning that you become an owner of a unit in a high rise building, you are going to largely be responsible for the HOA fees, which can go up astronomically in order to solve for a lot of the issues, the structural issues. A lot of those police places are sinking over there.

You have, the market is being saturated. People are absolutely losing a. They’re losing everything because the majority of what their savings are. When they say a lot of times that, oh, it’s millionaires, let me say this. And then we can move over to the next thing because I want to get over into self, the self deportation app. When they say millionaires, right? Millionaire is largely defined by net worth. Most people’s net worth is in their homes. So that can fluctuate depending on whatever the value is in your home. Also on top of that, there’s a difference between a high earner and a millionaire.

A millionaire could be determined by net worth, but it doesn’t mean that your lifestyle affords for you to be able to do the same things that a high earning millionaire can do. A high earner is a person that can make 750, $800,000, even 6, $700,000 a year. And then over time, they’ve acquired enough, enough assets to be determined as a millionaire. But they can still live a lifestyle that affords for them to have the nicer cars and nicer clothes. They can fly however they want to fly. They can spend, you know, 10, 20, $30,000 for a family vacation.

That is the difference between a high earning millionaire and, and a person that is a net worth millionaire. I prefer the lifestyle of a high earner making a million, $2 million a year. In order to do that, you have to acquire assets that then generate revenue over a period of time or acquire a skill set that generates a lot of revenue. You could be a doctor, you could be a surgeon, you could have a business. It’s a lot of different things that you can go over. And I’m not going to go over it right now, but I want y’all to understand the difference.

Most people in California, most people over in Florida, most people in a lot of these places, they are net worth. Net worth is how we define a millionaire. But all of their wealth is tied into mostly their retirement and their homes. So that means when the market becomes tumultuous, they then suffer and they cannot make the adjustments that a person that generates a lot of income, that is still frugal or still responsible with their resources, they can’t make the same type of moves. Okay, so I’ll give you another example. I’ll give you another example, right? Let’s say all of your net worth is tied into your home, or the majority of your wealth is tied into your home.

And so like, for example, we’ve seen what happened with the wildfires over there in California and all of that, right? But let’s say the market, the market becomes a little bit tumultuous and there’s some ups and downs and topsy turvies. Or let’s say, for example, your homeowner’s insurance in Florida skyrockets because the majority of the home insurers in Florida are pulling out because they understand that like for example, what was happening during the floods and the hurricanes and everything that was being predicted, you see what was going on over in North Carolina and all of this.

And so the state sponsored, state sponsored homeowners insurance are now trying to subsidize which they depend on the federal government to make sure that these homeowners are protected so that we can have confidence in the market so we can continue to buy homes. But Your home is still valued and appraised, raised, and that’s how you determine what your net worth is. So you’re a millionaire, but all you need is one disaster or one circumstance or one pickle that you’re in that then hamstrings, whatever it is that you got going on, you’re still limited by the amount of income that you have going on.

Right. And so you’re waiting on the market of return, you’re waiting on things to happen, you waiting on this, you’re on a fixed income or your 401k or whatever, and you’re waiting for your, the valuation of it to go up. Now let’s say on the flip side, because that person is now restricted based off of whatever it is that’s going on in the market at the time. Let’s say, for example, you’re a millionaire, but you’re a high earner. And this is the difference. Millionaires that are high earners continue to generate revenue. So regardless of what happens in the market, and people keep asking me, Anton, what do you think is happening inside of the stock market? Well, I show my W2s, I show my 1040s, I show my, I show my 1099, I show what my bank account is.

I’m not affected by it. I’m actually blessed by it because I look at it as a buying opportunity. Because there’s a market correction, there’s always going to be a cyclical market correction. So now, whereas you’re affected by it because you’re limited by the ability of you really being able to get out of that home, I’m looking at it as saying, man can’t wait to buy more real estate, man can’t wait to buy more land, man can’t wait to buy more stocks, man can’t wait to continue to capitalize off of cryptocurrency that’s now not as high as it was just two months ago.

Right. Because people that generate a lot of cash, a lot of revenue, our biggest goal is to figure out how we can get away, get rid of it, so we can reduce our tax burden, which increases our net worth exponentially. And the best time to do so is when we then see a lull in the market or there’s a market correction or whatever it is, you’re under duress because we’re going to get your stuff at a discount because you don’t know how to operate under duress. And we always going to have another 250, $300,000 coming the next month.

We, we always gonna have another half a million dollars coming the next month. We don’t care about losses. We write those off. We only care about the wins. We’ll take 10 losses in order to get to one win. We’ll take 10 losses and we don’t care because we gonna write it off to get to one win. That is the difference. And that’s why you need to understand that there’s a difference between the different people’s on a level. Just because you designate yourself as something or just because you put a label on yourself don’t mean that you in the same space as somebody else.

It’s always going to be some more money that’s coming because we know how to go get it. You depending on the market. We waiting on the market to do certain things so we can capitalize off of it. It’s the same thing in real estate. It’s the same thing in stocks. It’s the same thing across the board. If you know how to make money, then you always going to get richer. Especially when things go bad. When things go bad, that is the time that people get richer.
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