New season rubs the glitter off Million Dollar Listings
Filed under: Debt, Real Estate, Wealth
Bravo's hit show Million Dollar Listing is back for a third season tonight, and more than three-quarters of a million viewers are setting the Tivo's and curling up with the latest issue of House Beautiful. The show is focused on the sturm und drang surrounding three hot young real estate agents' manic efforts to list and sell homes in the high-end L.A. real estate market during what may well be the greatest housing crash in U.S. history. There's plenty of real estate pornography, and everyone is well-coiffed, drives a sexy car, and drinks plenty of Bling H20.
But how representative of millionaires is Million Dollar Listing, really? Not very representative at all. The show portrays the lifestyles of the big-spending glitterati who, as it turns out, actually comprise a tiny fraction of rich people in America. Consider this data point from Dr. Thomas J. Stanley's fabulous new book Stop Acting Rich.
- "About 90% of millionaires lives in homes valued at under $1 million." Meanwhile only about 27% of homes valued at more than $1 million are owned by millionaires.
Just think about that for a second: When you see someone on Million Dollar Listing contemplating buying a million dollar house, there's a 73% chance that that individual doesn't have a million dollar net worth. If he lives in a million dollar house, it's most likely a reflection of his level of debt -- which, last time I checked, is the opposite of wealth.
The new season of Million Dollar Listing differs from previous seasons in that it follows the high-end market in LA during one of its roughest periods in history. For the over-leveraged aspirational types who were sitting on 7-figure paper gains, chances are that all the equity is gone and all that's left is the debt.
Previews of the new season feature hysterical home owners running out of money to make mortgage payments on houses that have seen their market value halved. "F*ck you, Madison!" one homeowner shouts at star Realtor Madison Hildebrand after he tells him his house is worth "under four million."
While earlier seasons of Million Dollar Listing were criticized in some quarters for being too sweet and lacking in substance, this new season seems poised to provide a glimpse into the downside of a high-end lifestyle fueled by debt. It's my hope that it will provide a cautionary tale about the dangers of excessive aspirational consumption and the hazards of keeping up with the broke but high-livin' Joneses.
Maybe Bravo needs a spin-off show: "Millionaire Houses," which would showcase the living quarters of the average millionaire in America: $280k homes in middle-class neighborhoods filled with $15 bottles of wine and all the tap water you can drink.
Reader Comments (Page 1 of 1)
10-13-2009 @ 7:10PM
AiboERS7 said...
I did watch the show last night and one of the things the show should do is "stamp and date" the program. In real estate, especially southern california, one month can make all the difference in the world in terms of market time and sell price. This program does give an insight as to how insane the LA real estate market especially featuring three "hip, hop, jump" agents who are lured by the glamour of a show and possible big commissions. The drama of the sellers and the drama of the agents is quite amusing, certainly more in line with a three ring circus.
I do not envy the leased cars, the out of touch market pricing of the homes and the sellers that are so out of tune with the rest of the market. Of course everyone thinks their house is worth billions but in a competitive market, everything counts. Fortunately, the show did featured homes that does not even warrant the listing price that these so-called professionals are "dangling" in front of these financially starved sellers for one reason or another. In the upper market, there needs to be a refined professionalism which clearly was not identified in the program.
I think the show should feature the very homes each of these featured "real estate agents" personally lives in. That in itself would be a good episode for the series. Bravo, give us a show and tell episode!
Reply
10-25-2009 @ 1:02AM
Glen said...
Well, very nice little fluff piece about a very fluffy show!
Ill admit I don't watch television very much anymore, and Ill also be the 1st to admit I am particularly biased against reality TV. But after stumbling upon this prgram on a TV in a tire store waiting room today, I felt compelled to comment.
I think that the fact that all of todays listing clients were divorced, white women in their 50's, dreadfully marred with mal practice level facial surgery. As well as horribly narcissistic and devoid of any sense of reality. Shows what an utterly pathetic use of ones production energy. One of the most worthless, non contributions to humanity that I could possibly think of. And it is sad that there are people that actually have enough interest to have Bravo spend millions of dollars to put it on cable for a 3rd season.
Now, I wont just rant without saying that I believe there is some good and worthwhile programming on TV that actually furthers us as a positive, growing species. I will offer an example of something which I believe is a polar opposite in terms of just not having such an icky, degenerative feeling when you watch. Which deserves far more attention than anything Bravo could possibly come up with. Its on Animal Planet and its called Whale Wars. Its about a small group of people(volunteers) that are the last line of defense for our planets largest, oldest and most beautiful animals whom have been on the verge of extinction for over 2 centuries. Its not "reality" based(another word for "phony" and "contrived"), it is actual an actual documentary series.
Instead of wasting your time watching someones contrived idea of decadence and modern day aristocracy. Why not do something good for the world?
Reply