ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Man breaks down housing crisis with eye-opening math, explains why billionaires are to blame

The guy explained that to afford a home in the current economy, one needs to make at least $52 per hour.
UPDATED SEP 22, 2024
Getty Images: Frazao Studio Latino (Representative)
Getty Images: Frazao Studio Latino (Representative)

About a third, or 31%, of Generation Z adults are living with their parents, according to a 2024 report by Intuit Credit Karma. While poor finances and student debt are top reasons, rents were among the top concerns. Last year was the least affordable for homebuying in at least 11 years, per Redfin. While people have cited several reasons behind the affordable housing crisis, one TikTok creator, Samuel Smeltzer (@elyon113), has blamed the billionaires. 

Screenshots from the video | TikTok | @elyon113
Screenshots from the video | TikTok | @elyon113

The popular creator did a viral #stitch with another creator who asked people to explain in "crayon-eating terms" why he wasn't able to afford a home. The creator argued that he was earning three times the minimum wage and was still out of reach. 

Screenshots from the post | TikTok | @elyon113
Screenshots from the post | TikTok | @elyon113

Smeltzer went into detail about the issue and drew up calculations on the federal minimum wage in the United States. Smeltzer said that for the creator to buy a home, the federal minimum wage needs to be a whopping $52 per hour. Currently, it is about $7.25 per hour.

Smeltzer went on to explain the math behind his claim. He said when the federal minimum wage was first established, the average cost of a home was about four to six thousand dollars. 

The creator then puts the average value of $3,900 in an inflation calculator and the cost of the same home comes out to be about $90,000 in 2023. He then explains that if someone wants to buy a home at federal minimum wage, they need to make a down payment of $18,000 for a loan of 30 years. Further, at a good interest rate of 3.25%, the person would need a little under $14,000 to afford the home. This is right below the annual federal minimum wage. 

Screenshots from the post | TikTok | @elyon113
Screenshots from the post | TikTok | @elyon113

However, Smelter argues that people have allowed the billionaire class to blow up the housing market because of which the average cost of a home is now over $400,000.

Thus, as per his calculations, people would need to pay over $2,900 per month to afford the same property. He argues that billionaires and hedge funds bought every property that was on the board to play the monopoly game and jack up the prices.

Screenshots from the post | TikTok | @elyon113
Screenshots from the post | TikTok | @elyon113

"Billionaires should not financially exist. You pay the price for their yachts. Know your place," Smeltzer says in the video.

Smeltzer explains that to afford a home in the current housing market, people need to make at least $52 per hour and that's what the federal minimum wage should be. 

Viewers largely supported Smeltzer's opinion and rallied support. "Your anger is refreshing. We should all be this angry," one user @leilypei suggested. 

Screenshot from the comments | TikTok | @sleeping.pokemon
Screenshot from the comments | TikTok | @sleeping.pokemon

Several others shared their despair of not being able to live the simple life that they dreamt of. "I was told growing up “just get to $20 an hour and you’ll be fine” I make $25 an hour and can’t afford a car payment once mine dies," wrote user @sagedegas

Screenshots from the comments | TikTok | @fallen.star_13
Screenshots from the comments | TikTok | @fallen.star_13

According to a poll of renters conducted by The Guardian, the American dream of owning a home is dead. Thus, Smeltzer suggests that everyone needs to fight for it. 


@elyon113 #stitch with @Nic 💫Billionaires shouldnt exist💫 #fyp2024 ♬ original sound - Elyon113

 

For more such interesting videos, follow Samuel Smeltzer (@elyon113) on TikTok.

This article originally appeared on 7.29.24.

MORE ON MARKET REALIST
Herjavec was the only one who believed that he could make the business go big.
9 hours ago
Steve Harvey had never heard of the team the contestant and sadi, and his reaction was priceless.
10 hours ago
The contestant made the unusual choice because of a deal she had with a loved one.
1 day ago
The guest had received it from a cousin, who had bought it in Paris during World War II.
1 day ago
It was a fantastic solve for the contestant as the puzzle did not look easy.
1 day ago
Not only was the signature authentic, but also rare, as it was a full autograph on a personal document.
1 day ago
The guest wanted a lot less for the items and was happy to get a some extra cash.
2 days ago
Steve Harvey asked the contestant, Andrea, to demonstrate her answer, and that's exactly what she did.
2 days ago
The co-host revealed one of her hidden talents and fans were left impressed.
2 days ago
The entrepreneur might not have hoped to get so much money but he wasn't going to say no.
2 days ago
"He's got those American Idol dramatics ingrained in him," a fan pointed out on Reddit.
2 days ago
“We finally got our first $75,000 winner in the Ryan Seacrest era!!!” a fan praised.
3 days ago
It is a known fact that the first Barbie doll debuted in March 1959 during an annual toy fair in New York City.
3 days ago
The contestant also won the biggest prize ever in the show's history.
3 days ago
The duo disclosed that Chompshop was keen on building STEM skills in children with their monthly subscription-based projects. 
4 days ago
The item could bring in a five-figure sum as per the expert, which the guest didn't expect.
4 days ago
Mr. Wonderful did not want to be flexible but the entrepreneur made him an irrefutable offer.
5 days ago
Some believe the strategy to be too cruel, while others believe that it was a gamble on winning.
5 days ago
The contestant had her hands raised in celebration, only to be left disappointed and red-faced.
5 days ago
In a recent video on Instagram, the current host of the show harshly criticized his own clothing choices.
6 days ago