folks I just stumbled upon this home building site in Tennessee and found out that almost all of these homes were purchased by an investor And this investor is now trying to rent out these houses They're not even finished yet I think they're going to be finished in the next 3 months And the investor already has them on Zillow for 2500 a month in rent This is something crazy going on everyone And folks look at this You can see even more houses that were just built and no one is living in these houses right now One two three four five No cars in the driveway not a soul here on the street And then we go to the other side and we have even more houses under construction And it's a signal how Wall Street landlords are still trying to get a piece of the US housing market The company that owns these homes is called Pathway And they do something called rent to own And this rent to own model is something that you got to watch out for because it's a signal that the housing market is in a big bubble And what they're trying to do is get you to sign a three-year lease for this house behind me And then at the end of three years they're going to give you the opportunity to buy it which is kind of funny because these investors buying these homes today took away your opportunity to buy it So they're buying it today making you rent for 3 years and then saying "Oh maybe you can afford it 3 years from now." This is really interesting to me because these Wall Street investors are confusing their overall purchases on the housing market have actually collapsed down by about 50 or 60% Yet I keep seeing them pop up in home building sites I'm actually in Tennessee right now on a road trip here and um I keep seeing these investors buying from the builders and what I think is going on is that the builders are having trouble selling these homes at the skyhigh price The builder inventory is way up and normal people can't afford the houses So who does the builder then sell to so they can keep making money and keep building they sell to the investor I don't think a lot of people realize just how many homes are under construction in America right now The new home builder report just came out from the Census Bureau showing 500,000 active homes for sale from builders That's literally the second highest level of builder inventory ever The only other time we had this many homes for sale from builders was a two-year period from ' 06 to08 So understand this everyone the housing market is in a big bubble uh down here in the southern states in the in the US in Tennessee in Georgia in Florida in Texas We are in a big housing bubble right now And I'm showing you I'm showing you the inventory with your own eyes and the builders and the investors are having to get more creative and more desperate in order to keep the bubble going in order to keep the keep the prices from dropping But I just wonder how long can they keep this up because when I look at the data the data is becoming irrefutable that we are in a housing downturn here in the south specifically Inventory homes for sale is way up Price cuts are way up Values are starting to drop but they're not dropping by enough If you look at the homes that are actually for sale in this community and weren't sold to the investor they're around $450,000 for a three bed eight00 square foot home I actually toured one of these houses and they are decent They're okay but they're probably around $75,000 overpriced to what I think they should be based on people's incomes and what people can afford And it just again seems to me like the builders are trying to pull out every last stop The investors are trying to pull out every last stop to just simply avoid cutting the price and cutting the rent I mean I wonder what's going to happen to the market rents here down in Murphy'sboro Tennessee with this investor now putting 15 of these homes on the market for rent This is something I also saw in Florida driving up on the way here There was another home building community with rent to own And like actually what's amusing is in this community there's another Wall Street investor that owns down over there called Main Street Renewal they have a property for rent Like they can't like the fact that another investor just came in and put even more houses on the market And again it's an interesting kind of complicated story I'm showing you the investors buying houses here in this community But when you look at the overall data the investors are not really buying in total Investor purchases are down 60% from peak In a market like Orlando they are down almost 80% in Orlando Orlando the investor purchases are now at the lowest level in 10 years In Miami the investor purchases are down about 60 to 70% I mean look at these graphs Look at Miami everyone We went from a huge surge in investor buying to a big collapse in investor buying Same thing in a market like Atlanta Investors are no longer buying in Atlanta according to the data from Redfin And so really what they're doing is they're just specifically buying in home building communities because that's where the uh investors can get a discount They can buy in bulk buy 15 homes builder gives them a discount and that makes their cash flow operations work You know it's funny everyone I'm turning down this other street here Obviously some of these houses have sold but I'm seeing still like almost no cars in the driveway on most of these homes I mean look at that No cars in the driveway here Very few cars in the driveway over there I mean a lot of these home building sites are ghost towns And to me this is reminiscent of what we saw like 2007 we're talking like late ' 07 Like I feel like the time period right now is very similar to that in terms of how the economy feels But then also that what the data is saying because that was the last time we had all this home builder inventory That was the last time the investor purchases went down by this much was 0607 Both of those were leading indicators of the housing market downturn But there seems to be some inertia in the market today where sellers like don't want to cut the price enough right like the inventory is going up the days on the market's going up All the indicators are there to tell you a downturn's taking place yet the sellers are just so resistant And I'll look sometimes on Reddit Reddit housing market channel and I'll see homeowners post about how their house isn't selling and they'll be like "Oh my gosh I lived in my house for 510,000 and that's less than the comps but then it's been on the market 3 months and there's been no offers." And they're like "What's going on?" And I just see post after post on Reddit of these homeowners trying to figure out why their home won't sell And most of them aren't able to just figure out that it's the price Like you know you're overlisting your house Most of these sellers still think their house is worth what their neighbor sold it for three years ago and it's not The market clearing price is way way lower than most sellers want to acknowledge So the housing market's in this interesting position right now where all this inventory is now just sitting on the market and not much is happening The buyers demand is really low and the sellers are cutting prices incrementally but not enough to bring the buyer demand back So it's just kind of a dead market right now And what needs to actually happen to revive the market is for sellers to cut the price because the buyers aren't coming back in You know I I've pulled you guys on my channel many times asking you questions about when you're going to buy a house what you need to happen to buy a house I mean I pulled you guys a month ago and 58% of you said there would be no drop in mortgage rates that would propel you to buy You need lower prices Think about that 34% of you said you need mortgage rates to drop to 4% while only eight to nine percent of you said a five to six percent mortgage rate would incentivize you to purchase a home And so there's so much inertia on the buyer side and I'm just going to call it you know the fact that people can't afford to buy uh houses at these prices And so the demand is just way down but the sellers are just slowly slowly starting to realize it And we're seeing values drop in certain states Values are down in Florida They're down in Texas They're down in Arizona They're about to be down here in Tennessee The housing inventory here in central Tennessee is absolutely exploding Uh I was actually looking on Reventure app earlier uh in this area in Murphy'sboro which is about 30 minutes southeast of Nashville Most of these zip codes are 50% higher year-over-year on inventory Think about that So that means if we had a 100 homes for sale in the zip code last year we now have 150 And that's just resale inventory That doesn't even include the new builder homes in construction So even though you know that investor took those 15 homes off the market there's still plenty of other homes coming on the market You can see we got some more homes available for sale This builder is called LGI I keep running into this builder I saw them in Florida on the way up I'm seeing them here in Tennessee Um they're building lots of homes They have lots of inventory all over the place That house is available That house sold that house is available And uh again these houses are listed for like I think the cheapest is around 380 uh 390 and they go up to around 480 And what's wild is like that 380 to 490 you used to be able to buy closer to a downtown area in a good location and you used to be able to buy for 380 Now to get a house for 380 that's decent you got to go 40 minutes outside of town I think that's the big shift Like there are houses that are let's just call them pseudo affordable in certain parts of the US but they're always located way outside of town in an area that you just got to drive 40 minutes If there's traffic it's going to take an hour And so I think that's the other issue with the builders is that they built all these homes in kind of these far out locations in southern states Not much of the building is really happening in like the core areas where people want to buy And one thing that actually was really interesting to me was the recent home sale report from the National Association of Realtors I want you guys to pay attention to this The National Association of Realtors reported that in February 2025 there was 4.26 million annualized home sales That means that on an if you take the February sales activity times it by 12 and annualize it for seasonality it would be 4.26 million sales in a year If we take February's pace now that was the lowest mark for February in 14 years However there was huge regional variations in this figure If you went to the Northeast and Midwest and looked at expensive homes in the Northeast and Midwest sales were up anywhere from 10 to 30% year-over-year on million-doll plus homes in the Northeast and Midwest However if you looked at more let's just call them affordable price points in the South sales were way down in the South And so what we're starting to see is an increased bifurcation in the housing market where wealthier people in the northeast and mid midwest are supporting sales are supporting the housing market while most other parts of the country continue to struggle The demand is really low and also this is like uh in specific locations as well I was talking to a friend in Dallas and he was texting me about how there was bidding wars in the area that he was looking to buy a house He texted me what his realtor said and she's like "Oh we're back to multiple offers." And so you say how is that possible that in a market like Dallas where inventory is through the roof prices are dropping how is it possible there's still bidding wars uh in some pockets of the market and that's because what we're seeing more locally is that houses in good school districts and highincome neighborhoods or maybe neighborhoods that are becoming high income and are really on the cusp of a massive level of gentrification those still have a lot of demand often from families and households who have money and who aren't feeling this economic downturn So there could still be bidding wars in desirable neighborhoods on houses that are priced well And so I want you all to remember that because now that we're in the spring and we're at a seasonal time of year where there's more housing activity you're going to see realtors try to say "Oh we're back to peak demand There's so many people looking to buy a house right now You're going to see realtors try to say that um you you got to buy a house today because I'm seeing all these showings I'm seeing all these multiple offer situations Understand that those are isolated anecdotes and are not representative of the broader market The broader market is in a massive slowdown Demand's at the lowest level in 14 years Investors have stopped buying in general even if they're still buying in some home building sites and inventory is way up Inventory is skyrocketing So all those uh things are good news for you as a prospective buyer in the future Um we are going to see lower prices in many parts of America Companies like Zillow are now even you know lowering their forecast significantly this year Zillow is now predicting that prices are going to drop in 240 metros over the next 12 months I want to make sure that you guys are knowledgeable about what's going on in your local housing market and so you can understand what the trends are And to do that I would implore you guys to download the Reventure mobile application We are now in the app store on iOS and Android And then when you're ready you can upgrade to our premium plan so you can get access to our home price forecast score It's a score from 0 to 100 that helps you understand the future direction of prices in your area as well as 40 other premium data points on overvaluation and long-term home price growth Um I created Reenture app to arm you guys out there with knowledge on the housing market so you can make a more informed decision So download it in the app store right now