Ignorance Will Not Be Bliss: Spotting the Risks and Opportunities Begins With Being Informed

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Originally published at: Ignorance Will Not Be Bliss: Spotting the Risks and Opportunities Begins With Being Informed – Peak Prosperity

“It’s tough to make predictions, especially about the future.” ~ Yogi Berra

Which way is the economy headed? What asset classes will perform if not outperform over the coming years?

To get some seasoned insights, I spoke with Ken McElroy, a good friend and a longtime real estate investor and multifamily expert, currently managing about 10,000 apartment units. He believes that there’s a once in a generation buying opportunity

Ken worked his way up to the top of the game, starting as a hired property manager while in college. His journey taught him the importance of studying macroeconomics and the Federal Reserve after observing how money truly flows from Main Street up to Wall Street (not the other way around).

Interestingly, Ken’s business did very well during the Great Financial Crisis as people defaulted on single-family homes and returned to renting.

We discussed how severe housing unaffordability, driven in part by rising property taxes, insurance, and operating costs, along with higher interest rates, is pushing more people into rentals.

Ken’s belief is that policy should support affordable homeownership, but he doesn’t get to set policy or interest rates. Which means you have to play by the rules that are given.

We also discussed the rapid impact of AI on the economy and labor market. Ken has three AI experts speaking at his upcoming Limitless conference (Phoenix, August 14-16), where experts, including myself, will explore energy demands (especially for data centers), AI disruption, natural resources, real estate strategies, and defensive/offensive moves in a changing economy.

Honestly, it is one of my ‘can’t miss’ conferences of the year. The people I meet and the ideas I gather are always make it worth attending. If you are there, please come on up and meet me! Ken’s team has given Peak followers a 10% off discount if you use the code Chris10

So, enjoy the podcast. Ken is always engaging, clear, and optimistic.

For Those Who prefer to read vs. listen, here’s an AI-generated outline of the podcast:

  • Key Themes:
    • Housing affordability crisis
    • Rise of the renter economy
    • Real estate migration patterns
    • Commercial property repricing
    • AI-driven workforce disruption
    • Energy demands of artificial intelligence
    • Preparing for economic uncertainty and opportunity
  • Homeownership Crisis Deepens: Ken McElroy argues that rising interest rates, property taxes, insurance costs, and operating expenses are making homeownership increasingly unaffordable. While he believes policies should help people transition from renting to owning, current conditions are pushing more Americans toward long-term renting.
  • The Next Housing Shift Is Toward Rentals: Ken expects homeownership rates to continue declining from recent highs, with millions more people moving into the rental market. He believes multifamily housing will benefit as affordability pressures keep buyers on the sidelines.
  • Housing Affordability Is More Than Interest Rates: The debate over housing often focuses on mortgage rates, but Ken emphasizes the broader ownership burden: taxes, insurance, maintenance, and operating costs are all rising rapidly, squeezing homeowners even if rates decline.
  • Real Estate Remains Highly Local: While some markets are weakening, such as parts of Florida and Austin, Texas, others continue to see growth. Ken highlights migration patterns as people and businesses relocate from expensive or struggling urban centers to more business-friendly regions.
  • Downtown Decline and Urban Migration: Ken describes how cities such as Seattle and Portland have seen businesses and residents move away from downtown areas due to concerns over safety, taxes, and quality of life. The result is reduced foot traffic, weakened tax bases, and changing commercial real estate dynamics.
  • Migration Creates New Winners and Losers: As people leave certain cities, other regions experience rapid growth. Places like Idaho, Arizona, Texas, and Tennessee are absorbing new residents, driving demand for housing, schools, healthcare, and services.
  • Commercial Real Estate Faces a Repricing Event: Higher interest rates have dramatically affected commercial real estate values. Properties purchased with lower-rate financing are being forced to refinance at much higher costs, creating pressure on owners, lenders, and debt markets.
  • AI Is Transforming Businesses Faster Than Expected: Ken explains how his real estate company is using AI and automation to reduce administrative burdens, streamline maintenance, improve tenant service, and operate more efficiently without simply adding more employees.
  • The Office Workforce Is Being Reshaped: Tasks once handled by leasing offices, customer service teams, and accounting departments are increasingly automated. Ken believes AI will allow companies to grow without proportionally increasing headcount.
  • AI Is Disrupting Professional Services: Lawyers, accountants, physicians, and other credentialed professionals will remain important, but AI is changing how consumers interact with them. People can now arrive better informed, challenge advice, and handle more preliminary analysis themselves.
  • Education and Career Paths Face a Reckoning: Chris and Ken discuss how rapidly changing technology is creating uncertainty for students. Careers that once appeared secure, including computer science and professional fields, may no longer follow predictable paths.
  • The AI Revolution Has an Energy Problem: Chris highlights the overlooked infrastructure challenge behind AI growth: data centers consume enormous amounts of electricity. The long-term question is whether energy production can keep pace with AI expansion.
  • Limitless Expo Focuses on Adaptation: Ken explains that the goal of the Limitless investing and real estate conference is not to create fear, but to help attendees understand major shifts in AI, energy, economics, and real estate so they can make better decisions.
  • The Future Belongs to the Adaptable: Both Chris and Ken emphasize that success will require curiosity, flexibility, and a willingness to challenge existing assumptions. They argue that staying open to new information may be the most valuable skill in a rapidly changing economy.

Timestamps

00:00 The State of Home Ownership and Affordability
04:01 Navigating the 2008 Financial Crisis
06:43 Current Trends in Home Ownership vs. Renting
12:21 Economic Outlook and Consumer Behavior
15:54 Urban Decline and Retail Challenges
19:54 Political Flight and Migration Patterns
23:58 Future Economic Themes and AI Impact
28:19 Economic Predictions and Interest Rates
30:13 The Impact of AI on Business Efficiency
34:42 Empowering Employees with Technology
38:07 Navigating the Rapid Changes in AI
40:40 The Future of Employment and Education
44:00 The Energy Needs of AI and Data Centers
52:02 The Importance of Listening to the Next Generation

FINANCIAL DISCLAIMER:

The information contained in this video and the resources available for download through our affiliated website are not intended as and shall not be understood or construed as financial advice, nor should be interpreted as a solicitation to sell or offer to sell investment advisory services. No person who currently works for or contracts with Peak Prosperity or Peak Financial Investing is an attorney or accountant, nor are we holding ourselves out to be, and the information contained in the video and on the website is not a substitute for legal or tax advice from a professional who is aware of the facts and circumstances of your individual situation. While Peak Financial Investing is a registered investment advisor, please note that this podcast is not intended to be investment advice.

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. We have done our best to ensure that the information provided is accurate and provides what we feel is valuable information. The views expressed are subject to change based on market and other conditions.<

No guests or clients appearing on the podcast receive any form of compensation for their appearance and obtained no other benefit from either Peak Prosperity or Peak Financial Investing.

All investing involves risks including the possible loss of capital. Asset allocation and diversification does not ensure a profit or protect against loss. Please note that out- performance does not necessarily represent positive total returns for a period. There is no assurance that any investment strategy will be successful. All investments carry a certain degree of risk. Dividends are not guaranteed, and a company’s future ability to pay dividends may be limited.

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AI Data Centers: The Real Reason They’re Going Up Everywhere AI Data Centers: The Real Reason They’re Going Up Everywhere

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Who in their right mind would commit $2,000.00 / $2,500.00 / $3,500.00 or $4,000.00 per month to a house rental? Absolute insane pricing. Your guest rolled these rental numbers off his lips as if these kind of monthly figures were ‘the norm’. Snd to me, as I view the price of any rentals, be they apartments, townhomes, studios, single family houses - it’s all unreal ! The prices have just gotten out of hand and for many - out of reach.

I hope the housing market in the USA crashes by at least 50% ! Maybe then the youngsters could afford to buy a home.

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Unfortunately it is norm on the coasts…. San Jose cheapest 1 bedroom I could find 25 years ago was $2200 a month for a 1bedroom…. Can’t imagine what that same place is today…… I bailed and moved back to Portland suburbs …. Where rent was $800-$1200 for a 2 bedroom…..bought me some time but now it’s about the same…. today studios start at $1400, 1 bedrooms are going for $1800 I doubt you can rent any house for here under 3k ….im guessing San Jose might start at 6k ….. Heck the property taxes on my house alone now exceeds 1k a month….. utilities easily half of that and rising just take a browse on apartments.com and type in a city to see going rates…. It’s unsustainable . We locked in our mortgage at 3.5% and ever increasing property taxes are now the same or higher than our mortgage payment…. Utilities have gone up 50-100% too….the smart move is rural zoning with low property taxes , well septic and solar…. As the slope of the pinch is fast becoming a hockey stick But then there is there is the reduced jobs challenge . The world economic forum wants to eliminate single family homes and back in multi family in per bedroom like they did in Soviet Russia…. I can see line of sight that…. Even after we paid off our house taxes and utilities would drain our retirement once we stop working..

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Property taxes are about $8k in my area for a normal 50 year old single family house. Insurance is another grand. Water and sewer are customarily paid by the landlord. That’s another $100/month. Just those items add up to almost $1,000 per month out of pocket for the landlord. Repairs? Depends on the tenant but things break even with a good tenant and without some improvements the place will become a dump. Now add vacancy.

Or cross into Jersey where property taxes are commonly $12,000 to $15,000/year. Again for a normal house, nothing huge or fancy.

Still think prices should drop by 1/2? Who’s going to be a landlord then?

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If you look at the long game Mamdami in NY has already shown us the plan ……

Interest rates too high for the new home owner

Property taxes too high for the existing one

So landlords ….. until property taxes and repairs raise the rents too high for renters to pay

Then the leftist government will step in with rent control and then landlords can’t pay the taxes and the payments and the repairs so then The State confiscates it for the good of the citizens and rents it directly “ property tax free now ” to the renters basically steals all the real estate and income …”you’ll own nothing and be happy” . Ie no more private property it’s already starting in NY …..

in the UK landlords have 3 years to covert rentals to net zero building codes and energy efficiency “ cost about the same as the real estate value “before the government condemns it and forbids rental income…. And wages a huge fine and Eventually the landlords with stop paying taxes to get rid of the fines and taxes and once again the state owns it…. We tend to believe it’s incompetence and we just need to highlight it to turn it around…. But it’s a plan and it’s intentional….

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When Ken and Chris started talking about the medical field and AI, I have to put in my recent experiences. My wife had a hemorrhagic stroke 20 months ago, followed by several complications some of which I am convince was poor decision making on the part of the surgeon and his staff. I have been using Grok extensively to understand all that I can about her condition.

I am working with Grok to build a database on her, one of the things I wanted to incorporate into this was 7 of the CT scans she has had over the past 12 months, including a baseline CT that was done 6 months prior to the stroke. Grok told me if I could get slices of the 7 scans, basically a Jpeg image of each scan taken at the same 3 dimensional depth, so we can compare these and her progress or lack there of. Grok said it could draw on a tool that it could precisely measure these scans, called an Evans Index. I went to the NP at the neurosurgeons office and gave her the dates of the 7 scans I wanted the slices of. She said no problem. So I go back to Grok and tell it I will have the scans soon and it can do the diagnostics.

Grok came back and said I can’t do that. That they have to provide the Evans index on each scan. I argued with it, even went back and found the chat where it said it could do this. I cut and pasted it into my current chat to prove it told me it could do this task. It said I misinterpreted what it said, and that it can’t do this for me. I look at this as a reaction by the medical industry and forcing limitations put on Grok and the other AI. They see it a threat to them, they don’t want the patient to gave that much of an understanding of their job. It will make us question their decisions, it will weaken their ability to play God in our lives. It could also give the patient a better understanding of mistakes that were made on their part and put them in danger of added litigation.

To support this theory, the CT scans I was promised, its been 2 months now, I have asked for them repeatedly and I feel I am being stonewalled. Which tells me they know they made a mistake, caused my wife additional harm. Or their just too busy, but I will get the records, one way or another.

I realize I am going on here, but the reason for the database is I have seen first hand how HEPA has limited information necessary for patient care. For example, we had a new home care nurse a few weeks ago, she has never seen my wife before and only has limited information on her condition, let alone all that has happened over the past 20 months since the stroke. I handed her 3 pieces of paper, a patient summary that Grok and I have been building, just a summary. In just a few minutes of reading this summary, she had a full understanding of my wife’s history. The stroke, surgeries, shunt, complications, medications, vitamins and supplements. I just bought a Garmin Venu 4 smart watch to track her sleep, HRV, stress, etc. The technology that we have available to us is amazing, we just have to learn how to use it ourselves, for our benefit, and hopefully theirs.

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My primary residence (house) is fully paid - no mortgage. If I factor in property taxes, insurance, and HOA fees, I’m at around $1,800 /month. Owning a single family home you need to budget for maintenance, capital improvements (had to put a new roof on the house a year ago), etc. I easily spend $2,000+ a month just to “keep” the house I already own, mortgage free.

It’s not just the cost of the home plus the interest rates for a 30-year mortgage. It’s all the other costs that are pricing people out of the market to own their own home.

So, yeah, $2000 month rental is damn cheap for a single family home.

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Perhaps. Any reason to rule out this is the way AI can glitch on its own?

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