In the podcast I describe one of the most important subjects in today’s world, especially for students, housing and earnings, and the stark difference between attainability of housing in our current economic landscape.As students, once we are out of school, one of the biggest plans on most of our minds are “what career will I move to” and “Where will I move to.” But the latter question is not as easily answered today as it was ten to twenty years ago. Affording a house is more difficult than ever, which as our generation enters and leaves college, this can almost become discouraging. Housing markets have always fluctuated up and down, but the steepness that we see now is not just the result of an abnormal market, but of large companies not wanting to provide fair payment for the labor of their workers to scale and accommodate for changes in our society and economy.
Then, we go into how the market got so bad, especially in Arizona, when the company Zillow began purchasing homes, hundreds of millions of dollars in homes. From 2019-2021, Zillow owned more than 10% of homes in Arizona, and is selling them to the highest bidder, mainly snowbirds from up north, elderly couples who have enough money to pay their prices. Zillow now is currently losing hundreds of thousands as they try to offload homes after the market has started to stabilize, but the effects of their rampant buying is permanent, houses in Arizona alone have gone up almost 120-148% in the last 6 years, driving most middle class workers and families out of being able to comfortably afford a home.
This detriment can make life hard for a student, as no one wants to go from paying student loans to living in a house they cant afford, and as rent prices skyrocket to match, and no form of rent control is standard, actually owning something is becoming more and more difficult for the 18-25 crowd.