In this article, I want to emphasize my belief that the United States is currently experiencing a recession. Many individuals are struggling financially, while the wealthiest 10% see their income grow at an unprecedented pace. The gap between the rich and the poor continues to widen, particularly following tax cuts for corporations introduced by President Trump. Current tax laws and regulations disproportionately benefit the affluent, allowing them to enjoy tax breaks for luxuries like private jets, while the average person faces increasing financial hardship.

Be sure to check out my YouTube channel, Crypto 2 Moon, where I recently shared a market analysis for both the crypto and stock markets. This analysis provides a contrasting perspective on real estate, which appears far less optimistic compared to my outlook for crypto and stocks this year.

As we delve deeper into today's real estate landscape, I want to provide a crucial disclaimer:

The insights shared in my video are intended for educational purposes only. We are not certified financial advisors, and I recommend consulting with a fiduciary or licensed financial expert before making any financial decisions. It's always wise to conduct your own research and seek professional guidance tailored to your circumstances.

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It's essential to critically assess all information sources and seek out trustworthy individuals who genuinely aim to provide helpful content rather than exploit others.

It's widely recognized that the United States has the highest number of millionaires and billionaires globally, which significantly influences market trends. According to Forbes, the U.S. is home to over 735 billionaires and approximately 25.58 million millionaires, representing 39.1% of the world's millionaire population. Notably, 17 of the world's 25 wealthiest individuals reside in the U.S.

Despite my view that we are in a recession with many Americans facing financial difficulties, the political climate is heating up as elections approach. The government is pumping money into the markets and lowering interest rates to create an illusion of economic stability, hoping to secure re-election. This influx of loans, bank bailouts, and inflation control measures could lead to a continued rise in crypto and stock markets throughout the year. However, the real estate market presents a different scenario. While interest rates may be lower and loans more accessible, this does not guarantee approval for everyone.

Typically, those with higher incomes, who pose less risk to banks, are the ones more likely to secure loan approvals. This allows them to reinvest and further increase their wealth, leaving the average person at a disadvantage. If you're among those struggling financially, you might have accrued debt and seen a decline in your credit score. Job losses or reductions make it challenging to qualify for loans or mortgages, making property ownership seem out of reach. As rents continue to rise and new homes are priced beyond affordability, many feel trapped in a cycle of renting. I urge you to explore ownership options; it can be a pathway to building a legacy and gaining an advantage amid these challenges.

There are significant discrepancies regarding the state of the real estate market, largely dependent on the information source.

Politically, the U.S. government is reducing interest rates to create a facade of prosperity as we approach elections. However, the reality is that substantial changes are needed. Conditions are not favorable. Prominent real estate experts, such as Chris Krohn, predicted a downturn in the real estate sector back in 2017, and I still hold that belief today.

The average American is struggling with the rising costs of renting and the inability to afford homeownership. Debt continues to pile up, and with soaring credit card interest rates, bankruptcy is becoming increasingly common.

Home insurance companies often have affiliated firms that declare bankruptcy when necessary to cover losses from natural disasters like California wildfires, nationwide floods, and Florida hurricanes. While these companies may seem secure, insurance is becoming unaffordable for the general public. The cost of living has escalated dramatically; if you earn less than $100,000 per year, you're likely facing a tough few years ahead. It's crucial to take proactive steps to improve your income.

In addition to these challenges, we have witnessed numerous bank failures in the past two years, both domestically and internationally. President Biden's intervention to bail out Silicon Valley Bank with taxpayer money raises questions about who truly benefits. For instance, during the Silicon Valley Bank crisis, top executives secured last-minute profits and resigned, leaving regular investors to bear the losses, while taxpayers were left to cover the bank's failures. This situation highlights a troubling dynamic: the average citizen, already burdened by a recession, is forced to bail out banks, while those responsible often evade accountability.

To ensure the general public understands the value of their money and continues to deposit it in banks, the U.S. government may feel compelled to demonize crypto investments. However, if traditional banking is perceived as unsafe, where can individuals safely invest their funds? Holding cash in savings accounts can lead to losses due to inflation, making it unfeasible to expect growth from such savings.

All of these factors influence the real estate market. Many claim there is a housing shortage, but this perspective is misguided. With fewer people having children and effective birth control methods, the population growth rate is relatively stable. While buildings are being constructed at unprecedented rates, the materials used in U.S. construction are often subpar, resulting in homes that may not withstand severe weather conditions.

What occurs when there is an oversupply of houses and insufficient demand? Properties linger on the market, leading to significant financial losses for owners. Over time, homes can deteriorate, forcing owners to lower prices just to recover some of their investment.

As a homeowner, if you purchased your property during a period of high interest rates above 5%, rising expenses and potential job losses can compound your financial burdens, a common experience during recessions.

It's essential to recognize that, while recessions can be delayed, they inevitably have consequences.

Homeowners who do not make informed purchasing decisions, as highlighted in my other videos, may risk losing their properties. Those who navigate recessions successfully tend to have higher incomes or multiple revenue streams, allowing them to endure economic hardships. Renting properties instead of being a renter can be a smart strategy.

The Airbnb market appears oversaturated, with many hosts reporting low booking rates and resorting to price cuts just to mitigate losses. To succeed in this market, your property must stand out; otherwise, securing bookings will be challenging.

In summary, population growth remains stable, housing construction is at an all-time high, we are in a recession, the general public is struggling financially, and the housing market is both costly and competitive. It is becoming increasingly difficult for new buyers to enter the market unless they are already established investors capable of leveraging real estate income to acquire more properties.

For personalized insights on improving your life, check out my YouTube channel, Level Up with Alyssa Mahin.

When considering real estate investments, recognize the potential impact of a recession and adapt your strategies based on your local market. Many areas are experiencing saturation, particularly in the Airbnb sector. The financial struggles faced by the general public mean that the wealthiest individuals are currently reaping the rewards. It's often necessary to invest money to generate more wealth.

With my Master's degree in Environmental Law from Vermont Law School, I have a keen understanding of environmental justice and the financial disparities that affect individuals throughout their lives. Your financial health directly influences your overall well-being, so it's vital to make informed investment decisions.

Be cautious in your beliefs and take well-considered actions when investing.

Disclaimer: We are not licensed financial advisors; please consult a qualified professional before taking any action, ensuring that any decisions are based on your unique circumstances and financial situation.

I encourage you to share your thoughts below. Do you agree that real estate investment and homeownership are disproportionately affected by factors like income level, gender, and ethnicity? Do you share my view that the U.S. economy is in a recession, leaving many people financially strained? What are your thoughts on the potential continued rise of the crypto and stock markets, especially with the upcoming elections? Do you believe U.S. politics significantly influence market dynamics?

Your input is valuable; let’s engage in a constructive dialogue to foster a deeper understanding and progress toward a better future for all of us.

If you are interested in more content on Airbnb strategies, let me know in the comments. I have managed numerous Airbnb properties in Pennsylvania and Florida and conducted extensive research in this area. With the right market conditions and effective management, Airbnb can generate substantial profits, far exceeding typical rental income.

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