Epic Real Estate Investing - BREAKING: 42 States Declare Housing Emergency – Donald Trump’s Plan | 1433

Episode Date: February 26, 2025

This episode deals with President Trump's Executive Order 14154 and its far-reaching impacts on housing. Key issues include the housing supply crisis, soaring rent prices, and corporate takeovers of residential properties. The discussion highlights alarming statistics such as the home deficit of 1.5 million units, the rising cost of construction materials, and the demographic challenges facing Gen Z and seniors. The script paints a picture of a future where America is predominantly a renter nation unless trends change. It also offers a pathway for investors to capitalize on these trends using data-driven, systematic approaches, and invites viewers to a special real estate investment seminar in Las Vegas. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-i-a-com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Last week, President Trump signed executive order 14154, reopening 625 million acres of offshore federal land for energy development. Not housing, but its ripple effects on material costs and corporate land grabs are undeniable. You see, while 42 states declare housing emergencies, the White House just fast-tracked billions in federal loans to corporate landlords like Blackstone's invitation homes under Trump's emergency price relief order. Instead of homes for families, they're building rental fortresses, tens of thousands of units each month, all exempt from local rent controls under Chapter 103 loopholes. The result? Rents are now rising nearly twice as fast as wages in battleground states.

And here's why math says it gets worse. There are three tectonic forces colliding right now. The first one is the political land grab, the homestead siege executive order I just mentioned. Two, is the corporate takeover. One and four new homes will become institutional rentals. And three, the demographic time bomb. 74% of Gen Z, they're already locked out. So let's expose the real numbers that they're hiding. The first, the supply crisis.

The numbers they really don't want you to see. You see, the current deficit, right now we're at 1.5 million homes nationally behind. We need those 1.5 million homes just to stabilize prices. And the hidden truth here is, the total shortage could, exceed 4.4 million homes when accounting for all of this latent demand we got in the market. Then there's the construction labor shortage. 5101,000 workers are needed right now to overcome this deficit. And the shocking projection is that 1 million plus workers are going to be needed by 2006 as 1.9 million are quitting annually. And then the material costs. Those are up 30% from pre-2020

levels. So concrete is at 15%. Copper is up 45%. An electrical component. And the electrical components. And are up 128%. And the killer stat here is lumber prices. They tripled in six months during COVID, and were still 60% above pre-pandemic prices. Builders are completing 1.6 million units annually, but we need 1.7 million just to break even. Every year, we fall further behind. And late, last week, Trump just fast-tracked $7.6 billion, but builders confirm 93% will go to REITs, the real estate investment trusts, not families. And the reason why is, material costs are spiking 45% faster on federal sites due to tariffs. Number two, the demographic time bomb. The majority of Gen Z, over 70% are locked out of homeownership due to skyrocketing prices and stagnant wages.

The new reality is $64,500 is the minimum income needed for a starter home, versus $52,000 being the median wage. Millennial homeowners are delayed by two years compared to previous generations. 17 million of them are stuck renting despite their peak earning years. And then the silver tsunami. The number of renters over the age of 65 has surged by over 40% in the last decade, with millions more expected by 2030. And then number three, the institutional land grab. Corporate landlords own 3% of single-family homes.

That's projected to reach 7% by 2030. And the hidden fact here is that one in four, new single-family homes now built will be used as a rental, making entire neighborhoods locked into permanent rental status. They're not building suburbs. They're erecting rental fortresses. 90,000 units started last month alone, all exempt from local rent controls under Chapter 103. Here, let me pay it a picture for you. Unless the current trends are interrupted by 2035, America will officially become a renter-majority nation. That means more people renting than and owning homes for the first time in history.

And here's the primary trend causing this, the affordability nightmare. Home prices are up 47% since 2021. That's the fastest surge in 50 years. Mortgage payments, they're 40% higher than pre-pandemic at 7% rates. And the average down payment is projected to be $110,000 by 2035. Rents are growing one and a half times faster than wages since 2019. And the average rent is consuming 30% of the median household income. And here's a killer insight. Every 1% rent increase pushes 150,000 Americans into housing poverty.

The average renter now spends $12,000 more annually than pre-pandemic. That's someone's entire retirement contribution. And then there's geographic pressure. 40% of rental demand is concentrated in just three states. Zoning restrictions are blocking high-density development, and 73% of residential land prohibits multifamily housing. Now, much of this we've known, we've been discussing it here for a while on the channel, but here's why this trend exploded last week on February 18th to be specific. First, the political firestorm. Project 2025's Chapter 15, the Heritage Foundation, mandates elimination of discriminatory

fair housing laws, and this redefines federal assistance eligibility, meaning one and three zip codes could lose all affordable housing protections by third quarter of this year, 2025. The second are the emergency declarations. The U.S. Conference of Mayors, this was on February 19th, 42 states now under housing state of emergency, meaning 42% of households now are cost burdened. That's up from 33% in 2024. And then the third thing is the corporate feeding frenzy. Blackstone's invitation homes secured $7 billion in USDA-backed loans for homestead siege developments, meaning one and four new single-family homes now are corporate-owned rentals.

So all of this data, it projects three critical shifts by 2035. The first one, the vacancy rates will drop to 4% from 6.6% today. The second is rent growth will exceed 5% annually. And the third, 32.1 million aging homeowners will transition to renters. And because of all of this, we're looking at two very different Americas via two distinct paths. Path A, renters paying $2 million plus over their lifetime time. landlords, and that's statistically probable for most Americans. Or Path B, where you've got owners and builders capturing $12 trillion of wealth transfer. And this isn't speculation. The Fed's own

models show that housing starts will crash to $800,000 a year by 2050. So this window, it's closing. And the question is, which path do you want to be on? You see, while millions are being priced out of home ownership, those headed down Path A, there's another group quietly cashing in, those on path B, landlords. And I'm not just talking about big corporations buying up entire neighborhoods, though they're doing that too. I'm talking about everyday people, people like you who've figured out how to position themselves on the right side of this tidal wave. Think about it.

Rents have been rising one and a half times faster than wages since 2019. That's money flowing straight into landlords' pockets every single month. And with a housing shortage of over four million rental units projected by 2035, this trend isn't slowing down anytime soon. Now, if you stayed with me through this analysis, you're probably wondering how to position yourself on the right side of this. Because you might have noticed by now that this isn't just market analysis. No, it's a roadmap to opportunity. Because as they say, a rising tide lifts all boats. So, smart investors are using these exact trends to get as many boats in the water as possible so they can build significant wealth. And here's the fascinating

part. The most successful ones aren't doing it the traditional way. Because our data shows that investors using systematic hands-off approaches are seeing average first-deal returns of $25,000 plus. We're tracking portfolios that have scaled to seven figures without ever dealing with traditional landlord headaches. Look, here's the deal. I'm doing this crazy thing in Vegas where I'm breaking down every single data point, every single metric and system that makes this possible. We're going to be covering precise market timing metrics. Data-driven deal selection criteria. systematic scaling approaches, risk mitigation strategies, and funding optimization methods. And if you'd like to join us, we'll fly you out here.

Yes, the flight and the hotel, it's on me. And for two days, I'm sharing every single system that's helped my students do ridiculously well in real estate. I'm talking about normal people pulling in $25,000 or more on their first deals and building million dollar portfolios without breaking a sweat. If you like the sound of that, the details are available at Intensive-2025. But the best part, we're giving you everything, LLC setup, access to up to $150,000 in funding at zero interest. And my entire playbook for finding killer deals that nobody else knows about.

Plus, you get three months of me personally holding your hand through your first deals. But here's the thing. We're super picky about who gets in. So if you've got a 680 credit score or better, you've kept your financial nose clean the last seven years. And most importantly, you're actually serious about this. You should probably grab one of the 20 spots before they're gone. Now, this isn't about emotion. No, it's about mathematics.

And the math shows that this market shift is creating unprecedented opportunity. Within the next 10 years, you're going to be either paying rent or collecting it. So if you'd rather be collecting rent, go to intensive, 2025.com for the details. And if it makes sense to you, join us. If not, no big deal. All right. See you next time. Take care.

And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio.

Living the dream. Yeah, yeah, we got the cash flow. You didn't know home world. We got the cash flow. This podcast is a part of the C-suite radio network. For more top business podcasts, Visit c-sweetradio.com