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Celebrity Realtor Mauricio Umansky Warns ‘Perfect Storm’ of Housing Unaffordability Is Coming
February 23, 2024
Mauricio Umansky, founder and CEO of The Agency, discussed a “perfect storm” of housing unaffordability for homebuyers. He believes several elements are causing one of the biggest housing crises in history.
Umansky told Fox Business that high interest rates “above 7%” are to blame. Add to that low mortgage applications and no supply of homes, and there’s a trifecta of issues.
The realtor shared his thoughts during his appearance on The Claman Countdown. He discussed when he believes interest rates will drop.
“Until we start seeing the pain and prices drop, I don’t see the government dropping interest rates,” Umansky said. “So, we really need to allow the markets to be markets, and for affordability to start happening so that the government starts dropping interest rates again.”
Other factors of the housing crisis include a home-building decline, likely due to the unaffordability of materials used to construct homes. Also, homeowners are refusing to move due to mortgage rates.
Grant Cardone, private equity fund manager and real estate investor, agrees with Umansky’s assessment. He told GOBankingRates that the housing supply crisis has reached a breaking point. “We’re short 4 million homes in America, and we’re short another 40 million that nobody wants to live in,” Cardone said.
Therefore, he claimed that there was both a housing shortage and a “desirable” inventory shortage. He believes that many buyers would instead buy a smaller home with amenities than an older one needing a lot of work.
One way to improve the supply shortage of homes is for cities to change their zoning rules. These rules dictate where homes can be built and where they cannot. In looking at the old rules, some changes need to be made, reports NPR.
Some cities and states are trying a process called zoning reform to make more housing for interested homebuyers. These rules allow cities to create alternative housing such as multifamily homes, build near transit hubs, and “streamline” the permit process for buyers looking to build new homes.
However, until these zoning reforms are fully implemented, the housing crisis remains one of Americans’ most significant challenges.
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