Starter homes now cost $1 MILLION

[00:00:08]AINS THE B BAR FOR ENTRY LEVEL HOME OWNERSHIP HAS NEVER BEEN HIGHER.

[00:00:12]A RECORD 242 U.S. CITIES NOW HAVE $1 MILLION STARTER HOMES.

[00:00:18]THAT'S MORE THAN TRIPLE THE NUMBER BEFORE THE PANDEMIC.

[00:00:20]NOW CONGRESS IS MOVING TO LIMIT THOSE LARGE INVESTORS, PEOPLE WHO OWNED 350 OR MORE PURCHASE TO HELP ADDRESS AFFORDABILITY.

[00:00:29]SENATE MAJORITY LEADER JOHN THUNE MAKING THE CASE.

[00:00:33]>> THE HOUSING BILL, CAREFULLY NEGOTIATED WHAT WE CALL FOUR CORNERS BIPARTISAN, BICAMERAL DEMOCRATS AND REPUBLICAN HOUSE IN THE SENATE.

[00:00:41]IT'S AN ISSUE E THAT DIRECTLY GS AT THE TIME HEART OF THE AFFORDABILITY QUESTION FOR A LOT OF AMERICANS.

[00:00:46]CREATES ADDITIONAL SUPPLY OF HOUSING IN THIS COUNTRY.

[00:00:48]MAKES HOUSING MORE AFFORDABLE.

[00:00:50]I'M HOPING THAT'S SOMETHING, TOO.

[00:00:51]WE CAN COMPLETE.

[00:00:52]GET ON THE PRESIDENT'S DESK AND GET SIGNED INTO LAW.

[00:00:55]>> WITH US NOW TAYLOR RIGGS HOST HOSTON FOX BUSINESS: CAN'T AFFD IT BIG INVESTORS SCOOPED THEM ALL UP.

[00:01:11]>> CERTAINLY THE NARRATIVE IN POCKETS PHOENIX, ATLANTA, CHARLOTTE.

[00:01:15]PARTS OF FLORIRIDA.

[00:01:16]IN-LAWS THERE AND NEIGHBORS ALL THESE BIG INSTITUTIONAL INVESTORS, BLACKSTONE FOR EXAMPLE BIG PRIVATE EQUITY FIRMS.

[00:01:22]AT SOME POINT IN SOME OF THOSE CONCENTRATED AREAS, THOSE BIG BUYERS CAN FEEL LIKE THEY MAKE UP ALMOST A QUARTER OF THE LOCAL HOUSING STOCK.

[00:01:30]BUT, STILL BROAD RANGE IN THE NATION.

[00:01:32]YOU'RE ONLY LOOKING AT A MAX OF 4% OF ALL OF OUR LOCAL HOMES BEING ONDZ BY BIG INSTITUTIONAL INVESTORS.

[00:01:40]I THINK FROM AN ON OPTICS STANDPOINT THIS LOOKS REALLY GOOD ON PAPER.

[00:01:45]WE'RE TAKING ON THE BIG BUYERS.

[00:01:47]HOW DARE THEY.

[00:01:48]I THINK IT'S MUCH MORE COMPLICATED THAN THAT IT'S ONLY ABOUT 4% MAX OF LOCAL HOMES BEING OWNED BY THESE BIG INSTITUTIONAL INVESTORS.

[00:01:56]I THINK UNDERNEATH THE SURFACE THERE ARE MUCH BIGGER ISSUES GOING ON THERE ARE FEW GOOD THINGS IN THIS BILL LIKE YOU CUT OUT FEDERAL SUPPORT FOR THESE LARGE INSTITUTIONAL INVESTORS.

[00:02:08]THAT SOUNDS GOOD.

[00:02:09]THEY DON'T NEED FEDERAL SUPPORT WHEN THEY ARE TRYING TO SECURE A LOAN.

[00:02:14]THERE ARE GOOD THINGS.

[00:02:15]SORT OF THE FLIP SIDE OF THAT YOU REMEMBER IN 2008 HOME PRICES DROPPED AND THEY DIDN'T FIND A FLOOR.

[00:02:21]WHO ACCEPTED IN?

[00:02:22]ALL THOSE BIG INSTITUTIONAL BUYERS TO PREVENT HOME PRICES FROM FALLING EVEN MORE.

[00:02:26]I THINK PEOPLE ARE TRYING TO FIGURE OUT NOW WHAT DOES THIS MEAN WHEN THERE IS A MASSIVE BIG SELL OFF?

[00:02:30]WHO IS GOING TO COME IN?

[00:02:32]AGAIN, IT'S GOOD.

[00:02:33]IT'S JUST COMPLICATED.

[00:02:35]>> Ainsley: RIGHT.

[00:02:35]SOME OF THESE BIG CITIES I KNOW LIKE NEW YORK, NEW JERSEY ALL OF US MOVED HERE FOUR 40'S.

[00:02:41]YOU COULD NEVER AFFORD TO BUY AN APARTMENT.

[00:02:44]THEY START AT $1 MILLION.

[00:02:45]>> YOU ARE HEARING THAT IN ZILLOW.

[00:02:47]COMING OUT IN A LOT OF CITIES I THINK THERE WERE FIVE STATES THEY POINTED THE TOP FIVE WHERE THERE ARE STARTER HOMES MORE THAN A MILLION DOLLARS.

[00:02:55]I WOULD CAUTION IN FOUR OUT OF FIVE OF THOSE THEY'RE BLUE STATES.

[00:02:59]IT'S MASSACHUSETTS, IT'S NEW YORK, IT'S NEW JERSEY.

[00:03:01]YOU KNOW, WHAT ELSE COMES THERE?

[00:03:03]HIGH TAXES, HIGH REGULATION AND A LOT OF EXROO YOU ARE REQUIRED TO USE UNION LABOR.

[00:03:11]ALL OF THOSE LITTLE BLUE TAPE.

[00:03:12]ALL OF THAT ADDS UP TO CREATE THAT COST.

[00:03:15]SO, MY VOTE IS CUT SOME OF THESE LOCAL REGULATIONS AND YOU WILL SEE THE INPUT COSTS FALL.

[00:03:21]>> Ainsley: HAS A LOT TO DO WITH DEMAND.

[00:03:23]CHARLES STOLEN, SOUTH CAROLINA.

[00:03:24]SOME PEOPLE ARE MOVING DOWN THERE.

[00:03:26]PEOPLE WHO OWNED THEIR HOUSES FOR 20 YEARS ARE SELLING THEM AND MAKING A LOT OF THE MONE