Original subtitles

Hello?

Mr. Adam?

Mr. Adam, it's me, your landlord!

♪

(Adam) No, guys, the industry calls them flushable wipes,

but they're straight-up not flushable.

I mean, golf balls go down the toilet too,

but you don't call them flushable.

(sighs)

You know, Hayley loved it when I taught her that.

You!

You're the one who's been flushing these golf balls.

And are those pets?

(nervous chuckle)

(Rhea) So much hair gel.

Thanks for helping move out.

This is the fourth time you've been kicked out

of your apartment in three months, Adam.

I know, there are, like, so many systemic problems

in the housing market. (chuckling)

I wouldn't quite say your problem is systemic.

I mean, if you need a place to crash--

No, I have money.

(change rattling) I'm a big boy.

I'll find my own place today.

Adam, I'm happy to help.

I can do it myself.

Okay.

You know, I have my own TV show.

Sure, yup.

It's called "Adam Ruins Everything."

Closed Captions provided by truTV

♪

Prepare to be dazzled, ladies.

This house just came on the market.

(gasping)

Danielle, the energy in here.

I can feel it.

This is our home.

And outdoor spaces are always in demand.

This place is a great investment.

Mm-hmm.

No, it isn't.

Crap, competition.

Hi.

(women gasping) Oh, hello, are you looking?

For a place to live, yes, but--

Come to think of it, I probably shouldn't buy.

And neither should you.

Fact is, a lot of people who shop for homes

would actually be better of renting.

What are you talking about? I just got a promotion,

and Jen's sound healing practice just got a customer.

Yes, his name is Wolfram.

Right, buying a house is what you do.

It's the American dream.

Ah, yes, for almost a century, Americans have been taught

that homeownership is the ultimate middle class ideal.

Oh, Harold, our very own little castle.

Isn't it grand?

Yes, freedom, stability,

and no one will know I'm a queer. Oh!

But the fact is for millions of us,

this is a dream that's not worth chasing.

Please, buying a home gives you freedom.

No, it doesn't.

When you rent, you can move whenever you want.

But after you buy, you're sorta stuck.

(phone ringing)

Ooh, a job that pays more money?

In Hawaii?

(chain rattling)

Sorry, I'm just really tied down right now.

It's even been shown that higher rates of homeownership

lead to higher unemployment for exactly this reason.

You're forgetting that owning a home makes financial sense.

I am sick of paying rent to some landlord.

Yeah, instead you'll be paying a mortgage to some bank.

How is that any different?

Well, let's see, I send you a bill once a month.

I kick you out if you don't pay and,

ah, I don't fix anything.

That's the difference.

You're gonna need this when your heater explodes.

And I'm gonna use your can

considering I own it for the next 30 years.

(chuckling)

Often, buying doesn't give you any more stability than renting.

You're just paying a different jerk.

And for the first few years, you're not even building equity.

You're just paying off interest.

(whispering) Excuse me. Oh!

Okay, hairball, my name is Kheather Koke,

Licensed real estate agent.

And I've been in the business upwards of months.

Buying a home is the best investment you can make.

Yes, so they say.

Realtors and financial pundits would have you believe

that if you don't buy a home, you're an idiot.

Buy! Buy! Buy a home!

No money?! Buy one anyway!

If you don't buy a home, that means you're a financial...

(sound byte) F-F-F-Failure!

Oh, no, we gotta buy now, the loud man said so!

But what they don't tell you is that buying a house

can actually be a really risky investment.

Hey!

Real financial experts recommend

that you always diversify,

splitting your money between

lots of different investments,

so if one of them goes south...

You don't lose everything.

But if you sink your entire net worth

into one pile of wood and nails

and the housing market tanks...

(match strikes) ...like it did in '08,

you lose everything.

No-no-no-no...

No-no-no-no, it's fine, it's fine. (blowing)

2008 was a blip.

The housing market always goes up on average.

Yeah? That's what everyone says.

But it's not true.

One of the world's foremost housing economists found that

when you adjust for inflation, over the last century,

the housing market hasn't risen at all.

Not to mention the phantom costs.

Did somebody say phantom?

(gasping)

A presence.

A haunted house.

How charming... adds value.

Phantom costs are the hidden expenses of homeownership

we ignore when we rush to buy.

You forgot about home insurance.

And property taxes, closing costs...

Repairs!

This house doesn't need any repairs.

(cracking, loud crash)

Recessed lighting is much more popular now.

In the first two years, the average homeowner

spends more than 14 grand on improvements.

And that can more than wipe out whatever little profit you make.

I'm gonna use this money to take girls out on dates.

And then never reply to their texts!

Uh, do you have any other properties?

(woman sighing) Adam's right.

(gasping) For a lot of people,

buying a house is actually

a risky low-yield investment

that you have to pay to maintain.

Spirits are everywhere.

Oh, no, this is my friend Ramit Sethi.

He's a personal finance expert

and a "New York Times" best selling author.

(Ramit) You know, the truth is, guys,

a lot of Americans actually reduce their net worth

instead of increasing it when they buy a house.

That's because they don't factor in taxes, maintenance,

insurance, even repairing a roof.

And that can put 'em behind instead of ahead.

So, what, we should just keep renting?

Maybe.

Renting is actually a much better deal

than most people think.

A lot of people are gonna tell you,

"You're throwing money away on rent."

Don't listen to 'em.

Just think about it.

The landlord has to take on all the risk.

If the price of the house goes down, they're stuck with it.

If something breaks, they have to fix it.

Meanwhile, you live in that house.

You pay a nominal rent.

And if you need to pack up and leave, you can do it.

Huh, you're making it sound like an incredible deal.

Yeah, like, no one should ever buy a house ever.

No, look, buying a house can make sense for some people.

But just remember,

this is the biggest financial decision of your life.

So, make sure that you can afford it.

Make sure that you can put 20% down.

And make sure you're gonna live there for at least ten year.

And please, talk to a financial expert before you buy.

Not a real estate agent.

That makes sense.

Maybe we should hold off.

Mm-hmm.

(gasping) Ah, my face!

Get out!

Go get a rental if you love them so much.

But I'm blacklisted by every landlord in the city.

There was an incident with some golf balls.

Go get an Airbnb, for all I care.

I don't know you, dude.

Oh, yeah, and then I can talk about

how Airbnb enables criminals to run illegal hotel chains.

Thanks, this is gonna be great.

(groans) Oh!

(Adam whistling)

♪

♪

Ever wondered why the government

gives you a tax break on your mortgage?

The fact is they probably shouldn't.

(cash register rings. Cheering)

Every year the United States government gives out nearly

$70 billion in mortgage interest deductions.

You get a tax break, and you get a tax break,

and you get a tax break!

Most people think that money helps hardworking Americans

buy homes of their own.

But the fact is, it doesn't.

Most of that money goes straight to the people

who need it the least, rich folks.

I love this tax break!

I love it!

You're only eligible for that tax break

if you itemize your taxes.

And most people don't.

In laymen's terms, that means over 75% of that sweet, sweet

cash goes straight to homeowners who make over six figures.

Uncle Sam's giving money to rich people

who can already afford homes.

(man) Ohh...

(Adam) The story starts in 1913 when the government

made all forms of interest tax deductable.

But at that time, people who could buy homes

bought them with cash.

So, homeowners didn't even have interest for them to deduct.

Pa, you gonna deduct the mortgage interest

on our here home?

Heck, no, Ma, we don't have a mortgage.

We paid in cash.

Now quit your yapping.

We got a long day of looking straight ahead.

But over the next few decades, the growth of credit cards

led to a brand-new trend, debt and interest.

And soon after, everybody was deducting everything.

Why pay for this gold-plated statue when I can charge it.

It's a write-off.

But the government never intended this.

So, they closed that loophole in 1986.

Except for mortgage interest.

Congress was too scared to look like it was against

the American dream of homeownership.

So, even though we knew the tax break mainly helps the rich,

we still have it for no good reason.

Up next, six tips to lose weight that might kill you.

(applause)

Hey, there.

Welcome to my Airbnb.

My name is Zane. Alan, right?

Actually, it's Adam.

Weird, never heard that name before.

Let me show you around.

There's the bathroom.

I provide everything except toilet paper.

Before toilet paper, some Americans used corn cobs.

Okay, uh, over here, I have a ton of DVDs.

So, I hope you brought your DVD player.

This is the bedroom.

I painted these.

Yeah, this whole place is like a gallery of my own art.

Man, Airbnb rules.

Yeah. It sure does.

Apart from the massive legal liability, of course.

Lia, what now?

Well, Airbnb would have us believe it's a hospitality

utopia and better than a hotel in every way.

But the fact is, their business model endangers guests,

enables crooks and could leave you on the hook

for anything I do here.

But I thought they insured me or whatever.

Not always.

In many cases, Airbnb has refused to pay for damages.

One guest crammed a bunch of stuff down the owner's toilet,

causing $10,000 in damage.

(plopping)

(flushing)

But Airbnb only offered to pay 78 bucks.

Hey!

I'm sorry.

You know, I'm realizing this is a pattern of behavior.

In another case, a guest refused to leave the property.

And became a squatter.

This is my house now!

After Airbnb wouldn't help,

the host was forced to hire an expensive lawyer to evict them.

I've been here so long

that my skin fused to your laundry basket.

(laughing)

But the risks guests take is even worse.

Hotels are required to undergo routine safety inspections.

But no one checks Airbnbs for working sprinklers,

fire alarms,

(clicking)

carbon monoxide detectors

or fire exits.

What the--

I told you that's art.

Airbnb will actually send a photographer

to take pictures of your house...

(grunts)

But they don't send anyone to make sure that it's safe.

In 2013, at least six Airbnb guests

suffered carbon monoxide poisoning, and one of them died.

Oh.

And we don't even know the total number of people who have

been hurt because Airbnb refuses to release the numbers.

Well, you take your chances when you get a deal this good.

Yeah, you do, but not everyone gets the same deal.

Airbnb let you see my name and picture

before you approved me, right?

They sure did.

Well, Sears does wonderful work.

The problem is this enables discrimination.

One study found that guests with black sounding names

were 16% less likely to be approved as Airbnb guests.

Wait, was that white family lying

when they said I couldn't stay with them?

(gasping)

Was there no emergency yoga retreat?

I'm afraid not.

Nondiscrimination in hotels

was something the civil rights movement fought for for decades.

That's why in a traditional hotel,

this kind of treatment is illegal.

But at Airbnb, the bad old days are back again.

That is so (bleep) up.

Yeah, it is.

And it doesn't end there.

Because Airbnb is particularly bad for cities.

If landlords had their way,

they would make every apartment a vacation rental.

Of course I would.

Tourists pay a lot more than tenants.

But that drives up my rent.

I can't afford to live in a dang hotel.

(Adam) So, to protect residents, cities passed laws

that limit vacation rentals in apartment buildings.

(siren blares)

Problems is, Airbnb doesn't respect those laws.

A 2014 report found that nearly three out of four Airbnb rentals

in New York City were illegal.

I'm not a criminal, I'm an artist.

Sure, you may be an artist,

but a lot of Airbnb hosts are con artists.

Zane, this is Roy Samaan.

He researches housing issues at LAANE,

a Los Angeles based advocacy group.

Adam's right, Airbnb is used

heavily by shady characters who use the service

to run illegal hotel chains.

They take out multiple leases in different buildings

and Airbnb those units year round.

(man) I just making little cash when I'm out of town.

(Adam) These jerks take critical residential housing

out of the market which drives up rent for all of us.

And Airbnb does nothing to stop 'em.

There was even a case in L.A. where a landlord

evicted an entire apartment building

so he could rent out the rooms on Airbnb.

Left unregulated, Airbnb can destroy entire neighborhoods.

I don't know, bro.

Is it on Airbnb to control what their users do?

Airbnb is a big tech company

and they can filter out illegal listings very easily.

Instead, they're putting the burden on us and on cities

to go one by one and sue these landlords to make sure

they're not breaking the law, and that just isn't fair.

Thanks, Roy.

Hey, Adam, can I come in?

My arms are getting really tired.

Oh, it's not actually my place, so...

I don't know you, bro.

(window closes, Roy screams)

Not only does Airbnb know about these crooks,

they actually take a cut.

I can't believe we let them get away with this.

If three out of four Craigslist users were using the site

to commit murder, we'd be, like,

"Somebody stop that murder website?!

I want them killed with a knife, oh,

from behind for under $100 a stab.

Not only does Airbnb profit from illegal activity,

they've even secretly purged the records

of illegal listings from data they've released

to make it look like it's not happening.

Wow.

That's not icy.

That's straight-up dicey.

It's a shame because Airbnb actually provides

a valuable service.

Like, in remote areas that don't have hotels.

But they also need to be a good neighbor.

And right now, they're doing the opposite.

Damn.

Thanks, Alan.

It's Adam, and no problem.

I can rest easy tonight

knowing I've taught one person the truth.

You're not staying here.

I cancelled the reservation five minutes ago.

You blew up my toilet, remember?

But where will I stay now?!

I don't know, man, sleep on the street.

Well, everything we know about homelessness is wrong.

I can talk about that.

Yeah, this'll be great.

♪

(camera snaps)

Ever wonder where the Hollywood sign came from?

Well, it was actually an ad for a real estate development.

(snaps) It was built in 1923

and originally read Hollywoodland.

The idea for the sign came from investor Harry Chandler.

Yes, sir, yes, ma'am.

Step right up to Hollywoodland.

Plenty of views, plenty of light,

and big bonus, everyone's white!

(cheering)

Hollywoodland was a segregated housing plan

built for white people who were trying to get away

from Asian and Hispanic farm workers in the Valley.

Segregation?

Ah, gag me with a spoon.

(Adam) But the only thing stronger than systemic racism

was the stock market crash of 1929.

Ugh! Crushed under the weight of our own prejudices.

The development never took off.

And over the coming decades, the sign fell into disrepair.

One time, the H even fell over.

Soon after, the sign was almost torn down.

But get this.

It was saved by none other than Hugh Hefner, twice.

Once in 1978 and again in 2010.

So, if you like the Hollywood sign, thank me.

So, the next time you see the Hollywood sign, remember,

it's a big tacky billboard for a racist real estate plan

propped up by the king of porn.

And there's nothing more Hollywood than that.

(camera snaps) You know, I love your magazine's articles.

Oh!

Hey, there, buddy.

I'm with Good Peeps.

Do you need assistance?

Oh, I'm not homeless.

Oh, where do you live?

Well, I was kicked out of my apartment.

Then I was kicked out of a haunted house.

And then I blew up a guy's toilet in an Airbnb.

Sounds like a tough couple years.

No, that was all today.

Trouble integrating into society.

It's common among the homeless.

Let me show you the wonderful services we provide.

♪

At Good Peeps we provide hot meals,

substance abuse counseling and job training.

Our mission here is to end homelessness.

Wow.

None of those things will accomplish that.

In fact, this old-fashioned approach

does nothing to end homelessness.

What? I've been volunteering here upwards of months.

I know what I'm doing.

We're feeding the homeless.

Yes, and that is very generous.

But it doesn't change the fact that they don't have homes.

Can't build a house out of soup.

I'll take it.

Okay, fair point.

But we're doing our best to help.

I mean, substance abuse is a real problem.

That's why we require our clients to get sober

before we help them with housing.

Why would someone need to be sober

before they can have a place to live?

'Cause they might smoke the house?

Addiction is a disease, man.

Can you imagine refusing someone housing for any other disease?

Rejected? Why?

Sorry, Harry, you know the rules.

One diabetic coma and you're out.

Call us when you're off the insulin.

Research shows programs that require abstinence

place such a burden on the homeless

that many drop out and return to living on the streets.

Well, what about job training?

We give them skill so they can get a job and afford a home.

Even if you're trained, think about how hard it is

to get a job if you don't have a place to live.

So, under address you wrote,

Zero don't have a mailbox boulevard?

Yeah, but don't send my checks there.

We'll be in touch.

The services you're providing are well-intentioned and kind.

But they're doing nothing to solve the real problem.

These people still don't have homes.

You're right.

It's hopeless.

I mean, deep down, I knew it, no matter what we do,

the rate of homelessness never goes down.

There's no way to fix this.

Oh, no, actually there is.

A miraculously simple one, and it's being used

to great effect all across the country.

Really? Tell me what it is, please.

Just give them homes.

Shut the front door.

I would if I could.

You can't just give people homes.

(man) Actually, yeah, you can.

Oh, this is Rudy Salinas.

He's the program director at Housing Works L.A.

Hey, Rudy. Hello, Adam.

Would you mind telling Connor what Housing First is all about?

Sure, with Housing First we prioritize putting

people who experience chronic homelessness

in their own permanent housing.

Once we put a person into an apartment,

we're able to address all the issues and causes

of why they become homeless in the first place.

Studies have shown that when you put a person

in their own permanent housing, their health improves

significantly and you're able to affect change in their lives.

Not to mention, once they have a home,

they're no longer, you know, homeless.

Huh, it was right there in the word all along.

This is the new method being used across the country

to address homelessness,

and it's been proven to have great results.

In Utah, Housing First cut the number of chronically homeless

by 90% in just ten years.

But giving all those homes away must've cost a fortune.

Nope, it actually saved money.

When people live on the street, our taxes have to pay

for their emergency services,

law enforcement and hospital visits.

(groans)

In Utah, the average yearly cost per homeless person

was over $19,000.

But the cost of giving someone a home and a counselor

was just $7800.

That means Utah actually saved over $11,000

for every person they gave a home to.

Okay, but, I, I feel selfish for saying this but...

I paid for my home.

It doesn't seem fair that they should get one for free.

Well, I know it's counterintuitive,

but let me put it this way.

You can either let a person in need

sleep on the street and waste money

or give them a home and save money.

I know which I'd choose.

Connor, I want you to meet someone.

Hey, Rudy. Hey, Dorothy.

This is Dorothy Edwards.

She's my co-worker.

Hi, nice to meet you. (Conner) Nice to meet you.

And she used to be homeless.

Yeah, I was homeless for 15 years,

and I had no future, I had no hope.

I was addicted to drugs,

living in a tent on the side of the freeway.

Um, I was dying on the streets, literally dying.

And then one day I was approached by Housing Works.

And they said, you know, there's this Housing First model

that's new and we'd like you to be a part of it.

And they got me this great home that I live in today.

Look at this place.

Now I've grown so much living there in the last four years.

It changed everything.

I'm off of drugs clean and sober.

I became a homeless advocate myself.

I speak on national and state levels for policy change.

That's amazing. I wanna help too.

Is there something I can do to be involved?

Sure, there are organizations practicing

Housing First nationwide.

You may wanna contact your local homeless service provider.

Actually I'm going to a move-in party right now where we

put together everything a new tenant needs for their place.

Ooh, that sounds great, can I come?

Absolutely.

See you later, Rudy.

Hey, uh, Rudy, what would you do if theoretically

you didn't have a place to stay tonight?

Well, I'd ask myself who can I turn to who can help me out?

Hmm.

♪

I am so sorry to ask this of you

but it's just way too hard to find a place to live in America.

Our housing system is a mess, and no one is talking about it.

I need your help.

Just stay away from my plumbing.

Thanks, I know there's a silver lining here somewhere.

♪

Night, dude.

Night, Rhea.

Hey, thanks again for letting me stay with you.

Just, like, I said, be out by Christmas.

You got it.

(insects chirping)

Hey, Rhea?

Yeah?!

You know how I end my show, right?

I mean, I've only really seen clips.

Well, I usually end with a positive takeaway.

Adam, go to bed!

But I don't know if I can sleep without a positive takeaway.

Fine.

(sighs)

Our country is in the middle of a housing crisis.

Yeah.

Over half a million people

in the U.S. Are homeless.

Homeowners are struggling

to pay their mortgages.

And nearly half of all renters

are spending 30% of their income

on rent.

That's unprecedented.

Yup.

So, we need to eliminate our infatuation with homeownership

and build low-cost rentals.

That sounds nice.

Place common sense regulations on Airbnb.

Yeah.

And provide the chronically homeless with places to live.

And if we do all those things

we'll be that much closer to providing everyone

with a comfortable, affordable home.

(snoring) (laughs)

"Impractical Jokers."

Now that's a show.

Oh, I love the jokers.

I'm Team Sal. Team Sal.

♪

Oh, I'm never gonna hear back.

Ghosted.

(toilet flushes)

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