“Cost of capital” is a big deal in every category of a nation’s economic growth. For example, this quote from a multifamily REIT, divesting themselves of their assets… “Following a thorough board-led process, and despite our successful transformation into a focused multifamily platform with strong operating capabilities, market conditions have not allowed us to lower our cost of capital in a way that supports accretive growth,” Paul McDermott, Elme president and CEO, said in a statement.
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Brent R. Mekosh CFP®, CEPA®, CIMA®
🏡 Home Prices: 2000 vs. 2025 (courtesy of Forum Mapping).
Millennials and Gen Z get a bad rap. But the world they’re navigating is radically different from the one their parents inherited.
In 2000, the median home price in:
• California was $393K. Now? $833K.
• Colorado was $377K. Now? $582K.
• Arizona was $225K. Now? $455K.
• Texas was $153K. Now? $338K.
These prices are the embodiment of inflation. And real wage growth has not come close to keeping up.
This is what happens when the federal government overspends and the Fed floods the system with cheap money. Asset prices balloon. Wages don’t keep up. And those furthest from the money spigot get left behind.
💵 Maintaining the soundness of our currency and a focus on the next generation(s) should be a national priority. When homeownership becomes unreachable and the younger generations aren’t optimistic about the future, it creates both an economic a societal challenges.
Back to the map – owning a home creates skin in the game. So does getting married. So does raising children. These are the foundations of a stable, cohesive, and (perhaps most importantly) forward-looking society. When a clear path to ownership is broken, the ripple effects run deep.
This is a housing, regulatory, policy, and currency problem that we need to address. Until we do, younger generations are paying the price.
To the younger generations: here’s one bit of advice. Get as close to the money spigot as you can. That means owning assets: stocks, real estate, hard assets, and businesses. Inflation rewards owners. Don’t sit it out.
