upworthy

buying a home

Education

Realtor's raw, emotional take on why nobody can afford a house is beautifully devastating

"Corporations should not be allowed to buy single family dwellings."

@zacharyloft/TikTok

Realtor Zachary Loft discusses why it's impossible for young people to afford a home right now.

We’ve heard plenty of people lament the fading American Dream of being able to buy a home. But hearing that lamentation from the very people who sell that dream…it hits a bit different.

Delaware-based realtor and realty coach Zachary Loft (@zacharyloft) has had a very successful, very profitable career. In a recent TikTok video, he shared that he’s been able to make upwards of $400,000 in one year, essentially erasing any worries about money.

But over the past six or so years, Loft said that, along with his success, he had a “VIP front row seat to watching the American Dream get sifted away from the working class,” causing him to become disillusioned and fill with despair.

Getting passionate, Loft recalled how he once encouraged and educated people on making that potentially life-changing investment of a first-time home. However, in his own research, what he continued to find were legislative measures to “undo” the average person’s ability to attain this goal.

He cited the removal of 1933’s The Glass-Steagall Act, which prohibited commercial banks to merge with investment banks and insurance companies, as well as the “shifting tax brackets” brought on by the Reagan administration, the “skyrocketing” rise of private equity and “Wallstreet landlords.”

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“I look at the infestation of institutional investors buying up and banking on asset inflation that is housing, that is shelter, keeping normal everyday people out of having a roof in exchange for billionaires having bigger accounts,” he said, blaming their “egos” and a “lust for power.”

This greed, Loft argues, lines affluent pockets all while "draining" the income opportunities for the working, middle class. All of these revelations made him “not want to sell homes anymore” by 2022.

“I think I speak for a lot of people in their mid-20s right now that feel like ‘what if I do the work and the opportunity's just not there?” Loft said quietly.

Now, even more than selling homes, he wants “change.” And this call to action stuck a chord with many, many viewers.

“We’re so close to massive class consciousness. Keep pressing,” one person urged.

Another said, “Keep getting angry and loud at the systems. We gotta change it.”

“Dude, you have me in tears here” commented a third. “Your soul level conviction, altruism, and empathy touched me. You really, truly care. You are an incredible person. Please keep this up.”

Yet another hailed Loft's words as "slam poetry," saying it was "beautiful, even if every awful, devastating part is true."

While there is certainly truth to Loft’s findings, an article from journalist Derek Thompson suggests the well known housing crisis has less to do with private equity firms and more about the lack of new single family developments due to over-regulation and restrictive zoning laws that aren't set up to meet increasing populations.

To that end, several states are trying to make single family housing development easier. California’s governor Gavin Newsom recently signed into a law some groundbreaking reforms to boost housing production and infrastructure statewide and improve affordability. Similarly, cities like Minneapolis, Arlington, and Gainesville have also reformed and/or eliminated their single-family zoning laws.

There has also been an uptick in Real Estate Investment Trusts (REITs) that focus on investing in, developing, and managing properties that are specifically designed to serve low- and middle-income families. As explained by Sortis Capital, these REITs partner with governments, nonprofits, and private developers to provide housing at below-market rents, filling a gap that traditional market-rate housing developers cannot. Heavy hitters include Community Development Trust (CDT), Housing Partnership Equity Trust (HPET), and Reven Housing REIT.

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That’s not to say this isn’t still a very real and prevalent issue, nor that we will make much headway without addressing the overarching wealth and power imbalance in our country (i.e., billionaires). But, as many pointed out, true change happens when we speak up, together.