Why You Can’t Afford a Home (And It’s Not What You Think)

Why You Can’t Afford a Home (And It’s Not What You Think) | The Kitti Sisters - 3

EP294: Why You Can’t Afford A Home (And It Isn’t What You Think)

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What if we told you that the reason home prices are sky-high could be tied to three unexpected names: Genaro Garcia Luna, Najib Razak, and Ihor Kolomoisky?

These aren’t just random people—they’re 🇲🇽 Mexico’s former top law enforcement official, 🇲🇾 Malaysia’s ex-Prime Minister, and a 🇺🇦 Ukrainian oligarch.

So, what do they have to do with your dream home being out of reach?

Stick with us because this story isn’t just about pointing fingers—it’s about understanding the bigger picture, how we got here, and what you can do to navigate (and even thrive) in this chaotic housing market.

The Shocking Truth About Housing Prices

In a groundbreaking exposé by Politico, the narrative shifted.

It’s not just high interest rates, inflation, or supply shortages driving up home prices. Nope. It’s something much bigger—and sneakier.

The culprit? Dirty money.

The Dirty Money Problem

Here’s how it works: Every year, hundreds of billions of dollars in illicit funds are funneled into global financial systems.

People like Luna, Razak, and Kolomoisky allegedly use their ill-gotten gains to buy luxury U.S. real estate as a way to launder money.

And here’s the kicker: most of these purchases are done anonymously through shell companies.

  • In Manhattan 🗽, over 50% of luxury real estate purchases are anonymous.
  • In San Francisco 🌉, it’s nearly half.
  • In Miami ☀️, more than a third.

Now, you’re probably thinking: “Okay, but I’m not in the market for a penthouse. How does this affect me?”

The Ripple Effect You Didn’t See Coming

When dirty money floods the luxury housing market, it triggers a cascade effect:

  1. Wealthy buyers get priced out of high-end properties and move downmarket.
  2. Upper-middle-class buyers then compete for mid-tier homes.
  3. Middle-class buyers are forced into starter homes.
  4. First-time buyers? They’re left with nothing.

It’s like a domino effect that impacts every layer of the market.

But dirty money is just one piece of the puzzle. There are three other factors making this crisis even worse—and they’re hitting closer to home than you might think.

The Supply Crisis: Why There Aren’t Enough Homes

Let’s rewind a bit.

Since 1982, the average housing inventory has been about 2.2 million homes annually. The peak? July 2007, with 4 million homes on the market. Fast forward to January 2022, and inventory hit a shocking low of 860,000 homes.

Today, we’re short 3.8 million housing units—and it’s not getting better.

The HODL Effect: Why Older Generations Won’t Sell

Here’s another problem: Baby Boomers and Gen Xers hold almost 90% of the housing stock.

With higher prices and rising interest rates, many older homeowners can’t afford to downsize, leaving them in what we call an HODL (Hold On for Dear Life) pattern.

This locks up supply even further, making it harder for younger generations, like Millennials, to find homes.

Millennials Are Driving Demand

Speaking of Millennials—America’s largest generation—they’re entering their prime home-buying years en masse. But here’s the catch: the rate of new home construction hasn’t kept up with population growth.

With smaller households and fewer homes being built, demand is surging while supply stays stuck.

Renting vs. Buying: The Growing Gap

Let’s talk affordability. 👀

Right now, the average monthly rent in the U.S. is around $1,850. Compare that to $2,700—the average monthly cost of owning a home.

That’s a 30% gap, the largest we’ve ever seen.

Just two years ago, the gap was less than $200. Now, it’s over $800. First-time buyers are being completely priced out, and more people are turning to renting as the only viable option.

The Build-to-Rent (BTR) Revolution

Here’s where things get exciting. 😘😘

In response to this crisis, we’ve seen a surge in Build-to-Rent (BTR) communities.

Think of these as planned neighborhoods designed specifically for renters. They offer the perks of homeownership—privacy, space, even yards—without the financial burden of a mortgage.

For example, our latest project is a 118-unit townhome BTR community north of Dallas.

These communities are reshaping the housing landscape by offering an alternative to traditional homeownership.

Why BTR Is a Game-Changer

  • Affordability: No mortgage, no property taxes, no insurance.
  • Flexibility: Perfect for people who value mobility and don’t want to be tied down.
  • Amenities: Think gyms, pools, walking trails, and even EV chargers in attached garages.

This isn’t just a solution for renters—it’s an opportunity for investors to create income-producing assets while addressing the housing shortage.

The Path Forward

Here’s the bottom line: The housing crisis is complex, but it’s not unsolvable.

As investors, we have a unique opportunity to be part of the solution by increasing supply through BTR communities and multifamily developments.

But real change requires more than just private investment—it needs policy reform at every level.

When housing supply grows, rent prices stabilize, and the market becomes more accessible for everyone.

Your Move

If you’re wondering how to invest in this shifting landscape—or how to navigate these challenges as a renter or buyer—now’s the time to get educated.

Big changes are coming, and the people who understand the game will be the ones who win it.

Let’s keep this conversation going.

What do you think about these trends?

Are you ready to adapt and thrive in this evolving market? Drop your thoughts in the comments—we’d love to hear from you!

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We're Palmy ➕ Nancy Kitti 〰️ The Kitti Sisters

A sister duo team obsessed with all things financial freedom, passive income, and apartment investing + apartment syndication, who turned a $2,000 bank account into a nine-figure empire.  Now, we're sharing with you the behind-the-scenes secrets of our wealth building strategy.

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