Arnold Schwarzenegger blasts California politicians for housing crisis, calls citizens ‘economically homeless

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6 days ago

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Former California Governor Arnold Schwarzenegger isn't mincing words about the state's escalating housing crisis.
In a recent appearance on comedian Theo Von's This Past Weekend podcast, Schwarzenegger recalled that when he first arrived in California, the state's population was around 20 million. Since then, it has roughly doubled — a surge that, he argued, demanded a proportional increase in housing.
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'When you go from 20 to 40 million people, then you need twice as many houses, you need twice as many apartment buildings, you need twice as much of everything, schools and everything,' Schwarzenegger said.
'They didn't take care of them because the environmentalists thought that if we say, 'no growth,' then no one will come. But in the meantime, no one gives a sh-t about that — they come anyway. Then somehow they live three people in one apartment, or five people in one apartment, workers — they sometimes live 10 people in one apartment.'
He explained that with limited housing supply, prices inevitably skyrocketed.
'The unit that used to cost $600 now costs $3,000 a month. But the salaries, the wages didn't go up accordingly. So now you have people that are economically homeless — they cannot afford paying for their rent anymore, so this is created by the politicians,' he said.
Hedging against the soaring cost of living
California stands out for its steep housing costs. According to real estate brokerage Redfin, the average monthly rent in the state is $2,481 — substantially higher than the U.S. median of $1,642.
The gap is even wider for homebuyers. Redfin data show California's median home price is $858,600, nearly double the national median of $440,910.
A recent Bankrate study found that a household in California needs an annual income of $213,447 to afford a typical home in the state.
Yet real estate remains a popular investment choice for those looking to hedge against rising living costs. When inflation goes up, property values often climb as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to rise, providing landlords with a revenue stream that adjusts with inflation.
Over the past five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has surged more than 50%.
These days, you don't need to buy an entire property outright to benefit from real estate investing. Crowdfunding platforms like Arrived have made it easier than ever for everyday investors to gain exposure to this income-generating asset class.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you'd like to purchase, and then sit back as you start receiving positive rental income distributions from your investment.
For accredited investors, Homeshares gives access to the $35 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
Read more: Rich, young Americans are ditching the stormy stock market —
A golden alternative
Real estate isn't the only asset investors turn to during times of inflation. Gold has helped people preserve their purchasing power for thousands of years.
Today, the yellow metal is as relevant as ever for a simple reason: Unlike fiat currency, it can't be printed in unlimited quantities by central banks.
Gold has also long been viewed as a safe-haven investment. It's not tied to any one country, currency or economy, and investors tend to pile in during times of economic turmoil or geopolitical uncertainty — driving up its value.
In just the last 12 months, the price of gold has surged by 40%.
Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, recently highlighted gold's importance in a resilient portfolio.
'People don't have, typically, an adequate amount of gold in their portfolio,' Dalio told CNBC earlier this year. 'When bad times come, gold is a very effective diversifier.'
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
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