Economist Ted Bauman Explains What Is Wrong With The US Housing Market

Financial newsletter writer Ted Bauman takes an economist’s view on conservative investing and other matters of a financial nature. One thing he has been following is the cost of housing in the United States. The value of the average house has shot up by almost 50 percent since the housing market bottomed out in 2012. Meanwhile, the average family’s income has barely gone up 3 percent. Housing is becoming increasingly unaffordable for a large swath of Americans, especially millennials.

The latest First-Time Homebuyer Affordability Report, annually issued by the National Association of Realtors, shows that homes are getting less affordable. If their report shows a value of 100 that means that the typical family can afford the average home value in the United Staes. Numbers on this index above 100 shows more affordability while numbers below it show less. This number was 103.9 during 2018’s first quarter and dropped to 92.5 in the second quarter, showing a dramatic decline in home affordability.

The price of starter homes is also up quite a bit, Ted Bauman reports. In 2017 this home would have cost $197,400 while in 2018 a starter home now costs $228,700. Because of this first-time homebuyers can’t afford a home and need to rent instead. And, indeed, housing rental vacancies are seeing their lowest numbers in the past 25 years.

This is all good news for investors who buy REITs, though, or Real Estate Investment Trusts. These are mutual funds or ETFs that strictly invest in commercial real estate, which is also going up in value. They offer dividend income and the possibility of capital appreciation. These are considered an alternative to the traditional investments of stocks and bonds.

Ted Bauman was trained as an economist at South Africa’s Cape Town University. He worked as a fund manager in the nonprofit industry for a quarter century there before moving back to the United States and settling with his family in Atlanta, Georgia. He now writes three newsletters for Banyan Hill Publishing. The topics Ted Bauman covers are investing in a conservative manner, the economy, immigration, and protecting one’s privacy from big corporations and government.


Businessman, Entreprenuer and Philanthropist, Adam Milstein Supports and Educates the Jewish Population

Hager Pacific Properties is a private real estate agency that Adam Milstein and his college friend, David Hager, have been co-managing for almost 40 years. The two business students met while working on their MBA degrees at Southern California University. Hager, a native Californian, united with Milstein, a native of Haffa, Israel, to form this high-end, commercial real estate agency in Los Angeles.

Today, Hager Pacific Properties is the third largest brokerage in L.A. as Hager and Milstein have each brought in over $2 billion worth of properties to date. The agency specializes in purchasing and rehabilitating commercial and industrial properties, which includes retail, office locations, and multi-family properties.

Adam Milstein is a managing partner, but his role in the business community does not stop there. He is dedicated to his Jewish heritage and contributes his time and funds to enhancing and educating American Jews as well as those in Israel and around the globe.

Adam Milstein moved with his wife and children to the U.S. after graduating from Technion in Israel in 1981. Before college, he served in the Israeli Army for two years, but he wanted a better education, so he moved to L.A. to attend USC. His education has led him to become a very successful businessman and philanthropist for Jewish Americans and the Jewish population as a whole.

Some of the non-profit organizations that he has established and serves on the Board for the Jewish people are organizations, which are under the Milstein Family Foundation. The MFF also supports the Israeli-American Council or IAC, where he is the National Chairman, the American Israel Education Foundation or AIPAC, StandWithUs, ICC, Israel on Campus Coalition, Hasbara Fellowships, Sifriyat Pijama B’America, Taglit-Birthright Israel, Christian United for Israel, the American Jewish Committee, and The Washington Institute.

Adam Milstein and his wife are involved in extensive charitable actions in an effort to Give Back to the community. Mr. Milstein devotes his daily work to creating a tighter bond between the Jewish community that is now living in the U.S. to its roots in Israel where they originated. Adam Milstein serves a prominent position on the list of Jewish Leaders Around the World.