bUt ThAt"s mY NeSt eGG!

0:00 Around the world, in some of the most

0:02 real estate ccentric economies on the planet,

0:04 house prices have been doing something they

0:06 weren't supposed to be allowed to do.

0:08 They are falling.

0:09 Chinese real estate, once the single largest asset class in the world,

0:13 has fallen consistently for the past 36 months straight.

0:16 Canada is so far down by over 20% in certain cities.

0:20 And even though I couldn't find it on a map to confirm,

0:23 New Zealand's inflation adjusted market is down by over

0:26 a third in some of its major cities.

0:28 The current real estate crash in these countries is and/or

0:32 was arguably an even bigger deal than it is here

0:35 in America because somehow all of these examples have made

0:37 real estate investing an even more central focus of their economy.

0:41 Now, for the past two decades,

0:42 the assumption has always been that governments would step in to stop house

0:46 prices from falling too far before it turned into a full-blown economic crisis.

0:50 And well, up until recently,

0:52 government actions have kind of suggested that this would always be true.

0:56 Even policies that were explicitly targeted at making housing affordable

1:00 were actually just thinly disguised ways of making houses more expensive.

1:04 But today, in many of these countries,

1:06 it's starting to look like the party may be over,

1:09 and the governments themselves are actively trying to shut it down.

1:13 China has enacted strict financing regulations on property developers.

1:16 Canada is loosening zoning and tightening migration.

1:19 New Zealand has cut down on building

1:21 restrictions all while their markets are already falling.

1:24 And well, it doesn't look like it is stopping with them either.

1:28 Just this week, my personal favorite guinea pig economy

1:31 Australia passed sweeping tax changes that undid a lot

1:34 of the weird rules that made their real

1:36 estate some of the most unaffordable on the planet.

1:38 And of course, here at home, in the very same week,

1:42 America just passed the uh mostly bipartisan housing affordability package,

1:46 a major bill that directly addresses a lot of the problems in the housing market

1:50 that we have been yapping about on this channel for half a decade at this point.

1:54 Now, I know you guys all like to make fun of me for being a gloomy goose.

1:58 So, let me just say this is all really good news,

2:01 especially for a lot of young people who

2:03 have felt permanently priced out of owning a home.

2:06 But it does all raise one important question.

2:09 We have always been told that the housing market was too big to fail

2:13 and that significant price drops would undermine people's

2:15 financial foundation and potentially even cause a financial disaster.

2:19 So what exactly has changed?

2:21 And who is actually going to pay the price for this sudden reverse of course?

2:26 Sluggish economy, dripping house prices,

2:28 struggling home sellers in China are facing a new

2:31 challenge as banks step into the housing market.

2:34 The average price of a home in Canada went down again in April.

2:38 It's the 17th monthly drop in a row.

2:41 Median home values dropped about 7% year-over-year

2:44 in certain zip codes in the cities of Dallas, Salina, and Melissa.

2:48 They stopped making mortgage payments 2 years ago,

2:51 soon after they lost their full-time jobs.

2:53 We have nowhere to go at all.

2:55 It came after President Trump abruptly canceled

2:57 plans to sign a major housing bill.

2:59 We just passed something that we're all proud of.

3:02 85 votes in the Senate,

3:04 385 votes in in the House to make housing more available to Americans.

3:08 Okay, so first and foremost,

3:09 there is a big difference between an economic crisis causing

3:12 falling home prices and falling home prices causing an economic crisis.

3:17 At the very least, for a long time, nobody wanted to be the politician in charge

3:20 to tell new buyers that they would be

3:22 underwater on their mortgage or boomers that their investment

3:24 portfolio would fund slightly fewer cruise vacations.

3:27 This inevitably led to a slew of housing policies across

3:30 the world that only really tackled the demand side of the equation.

3:34 First-time home buyers couldn't break into the market,

3:36 so we let them put 1% down,

3:38 co-sign with their parents, access the retirement savings to use as a deposit,

3:41 pay off their loan over 50 years, and in some extreme cases,

3:45 even partner up with the government to qualify

3:47 for a loan to buy a poorly constructed studio apartment.

3:50 You know, the dream.

3:52 Unsurprisingly, this only really let desperate people bid slightly more,

3:56 raising the bar in a way that really only served

3:58 the people who already own properties exclusively as an investment.

4:01 Now, you probably already knew all this, especially if you, well, you know,

4:06 enjoy shelter, but arguably what we are seeing today is very different.

4:11 Many countries have already seen house price

4:14 drops larger than what they experienced in 2008,

4:17 and policies seem to only be pushing that further.

4:20 This is unsurprisingly sparking all manner

4:22 of outcry from industry groups across the world,

4:24 claiming that their respective governments are

4:26 beating the poor real estate market

4:28 while it's already down and ultimately lining us up for another major crisis.

4:33 So, well, to see if those claims actually hold any merit,

4:36 we need to do what the sensationalist headlines aren't willing

4:39 to and actually break down exactly what these new policies involve and then

4:42 we can look at what's happening in the few countries ahead

4:45 of the curve to figure out what might be in store for us.

4:48 So, starting with the biggest of these policy changes right here at home,

4:52 the 21st Century Road to Housing Act just passed

4:55 the House 358 to 32 and the Senate 85 to 5,

4:59 making it one of the most overwhelmingly

5:01 bipartisan pieces of legislation this Congress has produced.

5:04 Now, as a bit of a political sidehow, as of the time of making this video,

5:08 President Trump is currently refusing to sign the bill into law,

5:11 reportedly because he wants to use it as leverage

5:13 to push the Save America Act through first.

5:15 Now, the good news is that politicians politicking

5:18 doesn't really matter here because with those margins,

5:20 it has a veto proof majority.

5:22 So, it will become law with or without a signature.

5:25 The bad news is that unfortunately, this political theater is distracting

5:29 from some otherwise really significant and overwhelmingly

5:32 positive balance changes to the current meta of the housing market.

5:36 In particular, there are three standout features

5:37 of this new piece of policy that are worth understanding.

5:40 The first is that the bill offers incentives to local governments

5:43 that loosen up zoning restrictions to allow for more homes to be built.

5:47 Basically, the Department of Housing and Urban

5:49 Development is going to be handing out grant

5:51 money to any city that agrees to let

5:53 developers build more densely and in more places.

5:56 This is arguably the thing that housing economists

5:58 have been begging for over the last decade.

6:01 We already know that medium-density housing to smooth

6:03 the transition between urban sprawl and highdensity highrises,

6:06 works because it's a big part of the reason why places like Houston,

6:09 which has far laxer zoning restrictions,

6:11 also has generally more affordable housing than comparable cities,

6:15 even those within Texas.

6:16 For years, federal housing policy basically pretended zoning

6:19 was a local problem the feds conveniently couldn't touch.

6:22 It simultaneously let Washington take credit

6:25 for a strong housing market amongst their primarily home-owning

6:27 voter base while at the same time pass

6:30 the buck of unaffordable housing onto city councils.

6:32 So yeah, this bill is the first real acknowledgement

6:35 that local zoning is indeed a national supply crisis.

6:38 It sounds good, but it gets better.

6:41 The second big component of this bill is

6:43 the significant streamlining of the red tape around small homes,

6:47 factory-built homes, and small factory-built homes.

6:49 The biggest single change being

6:51 the elimination of the permanent chassis requirement,

6:53 which in the past meant that manufactured homes had

6:56 to be built on a metal frame with wheels and axles,

6:59 even if nobody ever planned on moving them.

7:01 Clearly, modern pre-manufactured homes have moved well beyond the trailers.

7:04 And even though some factory homebuilders have found loopholes around this law,

7:08 it's still a lot cheaper to not have

7:10 anything to jump through in the first place.

7:12 Eliminating this strange rule alone is expected to bring

7:15 the cost of each manufactured home down by $5 to $7,000.

7:18 according to the Department of Housing and Urban Development's own numbers.

7:21 Now, in the grand scheme of modern housing,

7:24 that may be a rounding error for most properties, but for entry-level housing,

7:28 that may only cost $80 to $120,000 in the first place,

7:31 which most prefabs tend to be.

7:33 That is a pretty meaningful discount.

7:35 The third big change is one that I hope sounds familiar to a lot of you.

7:39 It heavily restricts investment firms from buying single family homes.

7:43 Any corporate investor that already owns 350 or more

7:46 houses is now banned from purchasing additional ones.

7:49 This should eliminate what has been

7:51 a major competitor to regular families while theoretically

7:53 pushing that capital towards better alternatives like

7:56 multif family developments that boost overall supply.

7:58 Now, for what little it's worth,

8:00 these are all changes that I have been personally

8:02 advocating for for almost 5 years now on this channel.

8:05 As a bit of a personal side note, I do hope in whatever small way I can,

8:09 these videos have helped make these ideas slightly more popular

8:12 to the point where we are actually seeing real change.

8:15 But as a lot of people, mostly those with vested interests,

8:18 have been quick to point out,

8:20 house prices in a lot of these areas are already falling.

8:23 And these policies could accelerate that trend to the point where

8:26 it seriously undermines the finances of a lot of everyday people.

8:29 And well, you know what?

8:30 They kind of have a point.

8:32 Just perhaps not in the way they were expecting.

8:35 The American housing market is really dozens of different

8:38 market regions all behaving somewhat independent of one another.

8:40 And while some markets have remained strong around certain cities,

8:44 a lot of the country is already

8:46 seeing pretty significant drops in housing prices.

8:48 As of May, national list prices were

8:51 down 2.4% year-over-year with prices falling in 41

8:54 of the top 50 metro areas and drops

8:57 recorded across all four major consensus regions.

8:59 The biggest declines were along the west coast and the sunb belt where there

9:03 is still a glut of new homes left over from the pandemic era construction boom.

9:07 And there are some pretty clear reasons why

9:09 this is happening even before the new laws take effect.

9:12 The first is interest rates.

9:14 Mortgage rates have effectively tripled

9:15 from where they were when housing peaked.

9:17 Meaning that by simple arithmetic, people just cannot borrow as much as they

9:21 could a few years ago with the same income.

9:24 The second is that internal migration patterns have shifted.

9:26 People are still moving out of the pandemic boom

9:29 cities back towards the few centers with job opportunities now.

9:33 Again, I have been yapping about this for three years now,

9:36 so it's probably not exactly shocking to any of you watching anymore.

9:39 But the third and probably

9:41 the most underappreciated variable is insurance costs,

9:44 which have become a major deal killer,

9:46 especially in certain regions of the Sunb Belt.

9:48 To buy a house with a mortgage, you need to hold home insurance.

9:51 And there are now a lot of parts

9:53 of the country that have become borderline uninsurable.

9:55 In Florida, the average annual home insurance premium hit $8,292 last year,

10:00 up 18% in a single year.

10:03 In Houston, homeowners are paying almost $8,000 a year.

10:06 These get counted against people's ability

10:09 to repay their mortgage and applications.

10:11 Because $8,000 going to an insurance company is $8,000

10:13 that a household won't have to make mortgage repayments.

10:16 A growing chunk of homeowners who can't

10:19 get coverage through traditional insurance are also being

10:21 pushed into the surplus lines market where premiums

10:24 are even higher and consumer protections are weaker.

10:26 That market went from handling about 2% of home policies to roughly

10:30 16% in states like Florida and Texas in just 3 years.

10:33 At those prices, even if someone can afford the mortgage,

10:36 they might not be able to afford to insure the house,

10:39 making it effectively unsellable to everybody outside of cash

10:42 buyers who are willing to live in an uninsurable home.

10:44 On top of all of this, those very same

10:47 investment firms that have bought up all of those single

10:49 family homes over the last decade were kind of heading

10:51 for the exit even before this law was passed, trying to get out ahead of what

10:56 they clearly see as an incoming market correction.

10:58 Large institutional investors are now net sellers of single family rental homes.

11:02 In Dallas, for example, investors own about 9% of the housing stock,

11:06 but are responsible for almost 23% of all new for sale listings.

11:09 So yeah, even before this law goes into effect,

11:12 the housing market has got rates keeping buyers sidelined,

11:15 insurance making entire regions unaffordable,

11:17 and the biggest institutional buyers dumping inventory.

11:20 The drops aren't catastrophic yet,

11:22 and almost everywhere is still up compared to before co.

11:25 But if these new laws really do deliver the supply they

11:28 are promising on top of everything that is already pushing prices down,

11:32 it's worth at least asking what happens if

11:34 we push things too far in the other direction.

11:36 Potentially, this could kind of be like when your insufferable

11:39 co-workers insist on turning the office into a sauna

11:42 during the summer and then finally lamenting and turning

11:44 on the AC right as we were already heading into winter.

11:47 I mean, it's great that they came around,

11:49 but this would have probably been a lot better to do a few months ago.

11:52 So, it's time to learn how money works to find out if this is the right

11:56 policy just at the wrong time and if

11:59 falling house prices really are an economic crisis.

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13:10 Okay, so again, there's a big difference between a crisis

13:14 causing falling prices and falling prices causing a crisis.

13:17 It's also just possible for house prices to fall.

13:20 If a regular good or service becomes cheaper,

13:23 that is usually an optimal economic outcome.

13:25 So, well, what kind of situation are we really looking at?

13:29 NPR's Planet Money published a really good

13:31 breakdown of this exact question last week,

13:33 and we will leave a link to it in the description.

13:35 But to steal their homework a bit,

13:37 the key distinction comes down to why prices are falling.

13:40 If prices drop because more housing is being

13:42 built and supply is catching up to demand,

13:44 that is a healthy market doing exactly what markets are supposed to do.

13:48 Denver right now is a decent example of this.

13:51 Home prices are down over 2% year-over-year.

13:53 Rents have dropped even further,

13:55 and renters in the city are understandably celebrating.

13:57 One 29-year-old medical resident who NPR interviewed just moved

14:00 into a bigger apartment with bigger

14:03 amenities that he previously couldn't afford,

14:04 but can now because rents have come down.

14:07 His friend renegotiated her lease for $500 less a month

14:10 just by showing her landlord what comparable units were listing for.

14:14 The underlying economy in Denver is still growing.

14:16 People still want to live there.

14:18 Land values are stable.

14:19 The city just actually built enough housing

14:21 to give buyers and renters some options

14:23 and in doing so also gave employment opportunity

14:26 to trade people who were doing the building.

14:28 That is in theory the good kind of price decline.

14:31 It sounds great, but then of course there

14:34 will be people pointing to counter examples like Detroit.

14:37 After decades of de-industrialization,

14:39 the city lost nearly a third of its population between 1990 and 2010.

14:43 Home prices fell by over 80% and at one point in 2007,

14:46 houses were literally cheaper than cars.

14:48 It was a pretty grim situation that was

14:51 made even worse by the global financial crisis,

14:53 which again was a crisis causing a decline in prices.

14:56 Even still, nobody was celebrating affordable housing in Detroit.

14:59 That was an economy collapsing and dragging real estate down with it.

15:03 And to be clear, throughout modern history,

15:05 there have been dozens of regional housing corrections

15:07 that went basically unnoticed by the broader economy.

15:10 2008 was the exception, not the rule.

15:12 So, if we were just building more houses and making shelter more affordable,

15:16 that should be a good thing.

15:18 Even for people who already own their own homes outright,

15:20 broadly higher house prices on a day-to-day basis really

15:23 mean higher property taxes and higher insurance premiums anyway.

15:26 If they sell, they still need to buy somewhere else to live.

15:30 So lower prices across the board actually reduces

15:32 their ongoing expenses without drastically impacting their realizable wealth.

15:36 The fear-mongering around 2008 should be understood in its proper context here.

15:41 That crisis was caused by severe structural problems in the financial industry

15:44 that just happened to be using housing

15:46 as a convenient conduit for reckless speculation.

15:48 The housing market was fragile, yes,

15:51 but it was collateral damage to the real underlying problem,

15:54 which was that Wall Street had been bundling garbage mortgages into securities,

15:58 stamping them AAA, and spreading those losses

16:00 across the entire global financial system.

16:02 So, the widespread FUD from groups who simply don't

16:05 want the value of their assets to be undermined is,

16:08 to put it generously, a bit disingenuous.

16:10 One additional factor, for what it's worth,

16:13 is that even for people who do view housing purely as an investment,

16:16 they have to recognize that their investment

16:18 returns have largely been propped up

16:20 by very accommodating government policies that protected

16:23 the housing market over the last two decades.

16:25 So, it should stand to reason that a private investment that benefited

16:29 from government support would also be exposed

16:31 to the risk of government intervention, too.

16:34 However, there are still genuine risks here.

16:37 Falling house prices become an actual economic

16:40 problem when people are overleveraged in housing,

16:42 when the financial system is using it as collateral,

16:45 and when other sectors of the economy are

16:47 dependent on housing values continuing to go up.

16:49 And well, we kind of tick all three of those boxes at the moment.

16:53 Which brings us to the much less comfortable

16:55 question of who actually ends up paying for this.

16:57 If the music really does slow down,

16:59 someone is going to end up in a bad position.

17:02 And overwhelmingly right now,

17:03 that is people who have only just purchased their homes with minimal equity.

17:06 If you have bought a house in the last two or three years,

17:10 especially after 2002 when rates were already elevated,

17:13 you might be sitting on a mortgage at 6 plus% with very

17:15 little buffer between what you owe and what the house is currently worth.

17:19 A 10 or 15% drop from here and you're underwater,

17:22 owing more than the house could sell for.

17:24 Now, with a bit of critical thinking,

17:26 we can probably see that this might have been

17:29 a lot less painful if we hadn't spent the last

17:31 decade trying to get as many people into a home

17:33 as possible with 1% deposits and effectively zero safety buffer.

17:37 But, say, what's more is that even if we did end

17:40 up seeing price declines similar to somewhere like New Zealand's major cities,

17:43 which we probably won't for reasons we will get into soon,

17:46 that is still only going to put us back to where we were in 2021.

17:49 So, we are kind of stuck between a rock

17:51 and a hard place where prices are allowed to grow so much that anything short

17:55 of a catastrophic drop still won't actually make homes affordable.

17:58 Now, there is some tragic irony in all of this.

18:02 Young people who have just purchased a home

18:04 stand to be hurt by the significantly

18:06 more than older homeowners who statistically have more

18:08 equity if not a fully paid off house.

18:10 But young people are still by far

18:12 the most supportive demographic of these policy changes.

18:15 Now, to play devil's advocate a bit,

18:17 there is one growing sector of the economy that may be

18:20 hurt by this market correction more than most people are realizing,

18:23 and that is aged care.

18:25 Over the last two decades, in particular,

18:27 this industry has grown up around effectively harvesting the equity

18:30 from people's homes to fund slightly more comfortable end of life care.

18:34 Reverse mortgages, cash out refinancing,

18:36 or just selling the family house outright to pay for a spot in a facility.

18:40 There are a lot of old people as the baby boomers enter the twilight

18:43 years and things like age care facilities

18:45 have become incredibly expensive because well they could.

18:48 Residents have been showing up with houses that doubled

18:51 or tripled in value over the last 20 years.

18:54 So the facilities raised their rates to match their increased spending power.

18:57 A lot of these facilities are heavily leveraged themselves

19:00 as very common targets for private equity leverage buyouts.

19:03 They have historically been able to borrow against

19:05 the assumption that a steady stream of homeowners would

19:07 keep showing up ready to sell their house

19:09 for six or seven figures to fund their stay.

19:11 Now, nobody is going to shed many tears if this particular

19:15 industry gets starved of its easy money from home equity.

19:18 But it's also worth realizing that for a lot of smaller communities,

19:21 age care has been one of the more

19:22 stable sources of employment for a very long time.

19:25 More broadly, it would also be irresponsible to not at least mention the wealth

19:29 effect of number going up and the consumer

19:31 pessimism that comes from number going down.

19:33 A lot of people are spending based on the fact that they have

19:36 a fully paid off house that has doubled in value in the last 5 years.

19:39 Sometimes even with the help of a cash out refinance,

19:42 which has always ended super well.

19:44 It is irrational, but when the number on Zillow drops by 15%,

19:49 the instinct to tighten the belt follows pretty quickly.

19:52 A stock portfolio dropping is one thing,

19:54 but for a lot of American households, their house is their primary wealth.

19:58 And unlike stocks, you can't sell 10% of your house to cover expenses.

20:02 Now, to be fair, most economists who have weighed in on this, are

20:05 not predicting a 2008 style collapse from any of these policy changes.

20:09 Lending standards, despite our best attempts,

20:11 are still significantly better than they were back then.

20:14 The securitization risk is lower,

20:15 and the underlying demand for housing in this country is still very real.

20:19 Now, all in all, this might all sound pretty good,

20:22 but it gets better because there are already other countries ahead of us

20:25 in this process that we have had the luxury of watching from the sidelines.

20:29 Chinese real estate was once the single largest asset class on the planet.

20:32 And since the government introduced the three red lines policy

20:35 to crack down on excessively borrowing by property developers in 2020,

20:39 prices have been falling more or less

20:41 consistently for a half decade at this point.

20:43 In the first quarter of this year alone,

20:45 residential sales fell 13.1% by area and 18.5%

20:48 by value compared to the same period last year.

20:51 Everrand, once the country's biggest developer,

20:53 delisted from the Hong Kong stock exchange, making its shares worthless.

20:57 Hundreds of development projects across the country

20:59 were left half finishedish with deposits

21:01 already collected from families who will

21:03 probably never see these homes completed.

21:05 Despite a very major disruption to the core

21:07 asset class of their household wealth,

21:09 the Chinese economy is once again growing, only this time being fueled by more

21:13 sustainable industries like high-end manufacturing and exports

21:16 rather than building and trading empty houses back and forth to one another.

21:20 This is despite other headwinds like poor demographics,

21:23 weak consumer confidence,

21:24 and the ongoing tech crackdown in addition to their housing crash.

21:27 So yeah, if China had a housing market

21:29 that was arguably even more important to their economy,

21:32 crashed more severely, and was experienced alongside other headwinds,

21:35 and they have largely kept on chugging,

21:37 and if anything, realigned their economy into more sustainable,

21:40 productive industries, it's not been a painless experience,

21:43 but it also wasn't the global financial crisis.

21:46 My good friend Yuri from Money and Macro made

21:48 a video on this as I was putting this one together,

21:51 so I will leave a link to his work in the video description below.

21:54 New Zealand is another one worth watching.

21:56 After years of being one of the most overheated housing markets on the planet,

21:59 the government cut building restrictions,

22:01 raise interest rates and adjusted tax concessions,

22:03 and inflation adjusted prices in some major cities

22:05 dropped by over a third from their peak.

22:08 They've pushed through even more reforms since,

22:10 including a law that lets homeowners build granny flats

22:12 in their backyards without any building consents at all.

22:15 Housing inventory is now at a 10-year high, and it's very much a buyer market.

22:20 Canada is also worth considering because

22:22 we are obviously very close geographically, culturally,

22:24 and economically, and their housing market has

22:27 also kind of been going through it.

22:30 Condo prices are down about 6.6% year-over-year nationally.

22:33 And the situation in Toronto and Vancouver is particularly rough.

22:35 In the first quarter of this year,

22:37 there were over 4200 new completed condos sitting unsold

22:40 in the greater Toronto area alone, a record high.

22:44 Vancouver has a similar glut with unsold inventory up 76% from a year ago.

22:49 And uh in the interest of fairness, there has been pain and Canadian policy

22:53 makers are starting to get some cold feet.

22:55 Prime Minister Carney recently announced a billion half dollar program to buy

22:59 up unsold Vancouver condos and convert them into rent to own affordable housing,

23:02 which a lot of people are probably correctly just seeing as a developer

23:07 bailout sold to the general public as an affordable housing program.

23:10 The government says the developers won't turn

23:12 a profit on these sales, which is something,

23:15 but they also won't be exposed to the catastrophic loss they would

23:18 have endured had the government not been there to socialize their losses.

23:21 And then there is Australia,

23:23 potentially the most cooked housing market on the planet.

23:26 They're phasing out negative gearing on established property starting next year,

23:29 which was the tax loophole that let property

23:32 investors ride off rental losses against their salary income.

23:34 We always talk about housing

23:36 as an investment conflicting with housing as shelter.

23:38 But negative gearing in Australia meant that houses were neither shelter

23:41 nor assets so much as they were tax advantage financial instruments.

23:45 But anyway, they are joining these other countries

23:48 with significant housing reforms and they're additionally overhauling

23:50 the capital gains tax discount to significantly reduce

23:53 the incentive to treat housing purely as a speculative investment.

23:56 These were once the supply side and investor deterrent

23:59 policies that were once considered untouchable in Australian politics.

24:02 Now, it's worth noting that outside of China,

24:04 all of these countries had economies

24:06 that were already slowing before their housing

24:08 corrections really kicked in, making it

24:10 genuinely difficult to separate cause from effect.

24:12 And again, this is all happening in a market

24:14 with a lot of other stuff going on at the moment.

24:16 So, go and watch this video next to find

24:18 out where the housing market was before we doubled down.

24:21 And don't forget to like and subscribe to keep on learning how money works.