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

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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.

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Episode Transcript

Speaker 0 (00:00):
Welcome back to Wealthy AF, the podcast where we
dive into personal development,entrepreneurship and investing
to help you build wealth andtake charge of your future.
I'm your host, Martin Perdomo,and today we've got two critical
updates in the world of realestate and housing you won't
want to miss.
Let's kick things off bytalking about how credit
standards for commercial realestates have tightened in the

(00:23):
fourth quarter of 2024.
According to the FederalReserve latest Senior Loan
Officer Opinion Survey, or SLUS,a modest rare of banks have
tightened their lendingstandards for constructions,
land development andnon-residential loans.
However, multifamily loanstandards largely stayed the

(00:44):
same.
Here's where things getinteresting.
Larger banks are still seeingsome demand in key sectors like
multifamily housing andnon-residential loans, while
smaller banks report weakerdemand across the board.
It's a mixed bag depending onwhere you're looking and who
you're borrowing from, but thebottom line is clear it's
getting harder to secure funding, especially for new

(01:05):
developments.
For those of you keeping an eyeon CRE investments, the single
and more cautious lendingenvironment tightening credit
standards mean that, whileopportunities for financing are
still available, the terms aregoing to be tougher.
So what's the takeaway here?

(01:39):
Be prepared to navigatestricter requirements if you're
planning to invest in commercialreal estateyAFai.
We're constantly updating ourmembers with the latest news,
tips and strategies to navigatethe real estate landscape.
Don't miss out and sign uptoday.
Now let's pivot to somethingsobering here, Some sobering
statistics about housingaffordability in America,

(01:59):
particularly single and divorcedindividuals.
A recent survey by Redfinreveals that nearly 70% of
single people struggle to affordtheir housing payments,
compared to 52% of marriedpeople.
That's a staggering difference.
It turns out that being singleor divorced significantly

(02:20):
increases the financial burdenof housing.
Why?
Because single people aretypically shouldering the entire
cost for themselves, withoutthe advantage of dual incomes
like many married couples.
For instance, in Washington DC,a single renter pays nearly
$12,000 more annually comparedto someone who splits the rent
with a partner.

(02:40):
Beyond the dollars and cents,single people are also making
real sacrifices to keep up withtheir rent or mortgage payments.
According to Redfin's findings,21% of single people and 27% of
divorced or separatedindividuals report skipping

(03:00):
meals just to make ends meet,compared to only 14% of married
folks.
So what does this mean for thehousing market?
Well, the sky-high home pricesand rents that have surged over
the last five years.
It's clear that singles arefeeling the squeeze the hardest.
For those of you in the realestate industry.

(03:21):
This could be a signal thatzoning laws and policies need to
adapt to cater more to singleperson households, with options
like single room housing oraccessories dwelling units
becoming more critical asaffordability worsens.
Now, this has been a problemsince 2020, since the pandemic,

(03:41):
this housing affordability hasbeen 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, andit's guys like us and like
myself in the industry andlisteners like you that can fix
the problem and find solutionsfor this affordability issue in
our country.
And find solutions for thisaffordability issue in our

(04:04):
country.
If you're ready to turn yourgoals into gold, you're in the
right place, Because being brokewas never the plan.
Let's be wealthy.
Af meaning wealthy and faithfultogether.
And that's a wrap for thisweek's real estate market update
Peace out.