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Investor and TV personality Kevin O\u2019Leary isn’t sugarcoating the housing market in states like California. In a post on X<\/a>, he said affordability has dropped so sharply that what used to buy you a spacious three-bedroom home now barely gets you into a trailer.<\/p>\n \u201cAffordability is down about 40%,\u201d O\u2019Leary said. \u201cIn other words, you\u2019ve got to buy a house with 40% less square footage and pay the same amount on it.\u201d<\/p>\n Don’t Miss:<\/p>\n According to O\u2019Leary, mortgages are still the number one factor affecting home affordability, but now insurance and taxes are making things worse. \u201cYou combine the insurance cost with the taxes plus the mortgage,\u201d he said.<\/p>\n In high-risk states like California, insurance has become a massive burden<\/a>. \u201cIf it isn\u2019t earthquake, it\u2019s flooding. Now you got fire. You get fried, drowned, and shaken there, and nobody wants to actually insure that.\u201d<\/p>\n He said the combination of rising costs has caused the housing market to freeze in parts of California, Texas and Florida. \u201cIt’s ground to a halt while these issues resolve,\u201d O\u2019Leary added.<\/p>\n Trending: Wall Street’s $12B Real Estate Manager Is Opening Its Doors to Individual Investors \u2014 Without the Crowdfunding Middlemen<\/a><\/p>\n Despite his grim take on California housing, O\u2019Leary remains highly engaged in the market. \u201cI watch this like a hawk because I\u2019m a big real estate investor,\u201d he said.<\/p>\n He just doesn’t think it makes sense in the most expensive states right now. \u201cThat classic three-bedroom, you know, 2,500 square foot deal that you could pick up for $1.2 million? Forget about it. You\u2019re living in a trailer home now for the same price it costs in California.\u201d<\/p>\n While affordability is plunging, real estate still holds opportunity for smart investors<\/a>. Over the next five years, experts expect home prices to grow just 1% to 2% annually, totaling about 13% to 14% appreciation by 2028.<\/p>\n See Also: 7 Million Gamers Already Trust Gameflip With Their Digital Assets \u2014 Now You Can Own a Stake in the Platform<\/a><\/p>\n Multifamily housing, build-to-rent communities<\/a> and converted commercial spaces<\/a> are expected to attract more capital. Investors are also watching industrial real estate, which remains strong thanks to e-commerce and manufacturing.<\/p>\n","protected":false},"excerpt":{"rendered":"Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Investor…\n","protected":false},"author":2,"featured_media":57048,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[7,9,8,35136,2655,35135,35137],"class_list":{"0":"post-57047","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-california","8":"tag-california","9":"tag-california-headlines","10":"tag-california-news","11":"tag-home-affordability","12":"tag-housing-market","13":"tag-kevin-oleary","14":"tag-spacious-three-bedroom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/57047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=57047"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/57047\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/57048"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=57047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=57047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=57047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}