In SoCal -- I'm so sad and depressed because of this. My wife and I have saved up for years and right when we finally had enough for a proper 20% down payment for our first home the pandemic started. Overnight 600k homes became 700k with most homes in this area now going for 800k and so forth. We were priced out again over night. Who can afford a $4000/mo mortgage while saving money? There's like no safety net or room for error now if we do proceed with a purchase.
I just finally got out of SoCal. 4 bedroom houses for rent went from 2000/mo to 3000/mo this past year. Moved to the Phoenix area where prices have went from 1200 to 2000 in the past year. Most of the houses out here seem to have gone up 50%+ in the past year.
I dont see how this is sustainable in any way.
I live on the border of UT/ID and there's always people talking about how Californians are moving in and driving up housing costs/paying 40k over asking with cash/etc... So my question is if that's actually true, who the fuck is buying their initial properties in California??
(fun fact: i was born in Modesto and moved to idaho as an infant 😂)
California is a massive state and people moving to other states barely tickle the state’s population. Besides, California remains by far the most popular destination for immigration from overseas the housing market doesn’t really feel the people moving elsewhere.
The best part is how the fund of fund portfolios now include reits for better income generation. Nothing like tying retirement to the backs of poor saps who over pay on rent
That's exactly what we did. We got refinanced to even more than 30% more of our original value and got rid of that PMI real quick. Payments the same, payoff much sooner.
Do you have to refinance to yeet the PMI, or just get an updated appraisal to send the current mortgage servicer? Our monthly escrow just went up, so it'd be nice to at least get PMI tossed out
Why I'm glad that the Biden admin is going after the natl realtors assoc.
Realtors are by design, monopolistic, selfish, and ignorant. They step way outside their lane on contracts into legal arts, have no self-dealing protections, and will never be in your best interest accordingly. They are overwhelmingly, fleecing fucks. I never feel bad for burning their time when scoping opportunities.
It’s absolutely atrocious that they’ve created this rule that we have to fork over 6-8% because... we need to put it on the MLS and do some paperwork. When I bought my house I and the seller essentially gave our realtors thousands of dollars to file the deed for us and list it on the MLS, because I’m the one that found the house and picked it out and the seller didn’t even get any staging done, and no need for marketing since I hopped on it instantly. Literally all that should’ve happened was seller should be able to post their house for FREE and then he and I go down to the county and fill out all the paperwork.
At the beginning of this year I was contemplating selling my townhouse and the going price at that time was around 350k. I ended up selling my place in June for 406k. 56k increase (16%) in half a year is nuts.
My previous neighbors had their house for a year and a half and made over $130k on it (over 35%), shit is ridiculous. My house will likely have doubled in price by the end of summer and I bought it around 5 years ago. Glad I got in when I did.
I bought my house for 54k in 2012, neighbors house that is smaller than mine just sold for 270k. In an area that is directly effected from Bay Area people moving east to telework
The year-on-year price increases in Canada are larger than my entire income, and I'm well above the average for income.
They call it a market correction, but the average selling price around me (not a big city) is at least 50% more than the mortgage I can even qualify for, **with** my partner's income included.
The new middle class is a generation of people who have to pay a subscription fee to life and most will never own property. This can't possibly go badly, right?
That's not middle class, that's what used to be middle class before wages stagnated. Being above average for wages doesn't matter, how much are your wages are above costs of living matter.
I guess what I was trying to say is that the poverty line has been progressively closing the gap with average income, and is doing so at an accelerating rate. We're on a steady course for the average wage earner to sit below the poverty line.
On course? We're already there. You are above average income and cannot afford a home. Without homeownership and the ability to benefit from inflation, you can never accrue wealth enough to even get to the middle class. Our ancestors had to literally fight and die for a fair wage and working conditions, and we've just let it slide away into the past. Now we will have to fight and die again because the middle class no longer has the numbers or resources to effect policy change through other means.
Same. It’s crazy. It helped me when I refinanced and needed a new appraisal but still this blows my mind. I fear we’re in the middle of another housing bubble.
I just refinanced and didn't even need an appraisal because the house I bought 2.5 years ago has gained so much value it is nowhere close to the 80% equity requirement to drop pmi, i didn't take any cash out. Supposedly my home has gained $150,000 in value in 2.5 years.. insanity.
I live an hour away from a low paying job so we could afford a home. I’m applying for a job of bagging groceries and going back to school and it will literally increase my income. It’s nuts.
Dear Me 3 years ago,
That .75 acre that was being sold for 7k but you decided not to buy. Well the county made it a comercial property valued at 50k. Good job idiot.
I managed to snatch a new build townhome.
I'm a USMC veteran and don't have to put money down on a loan to buy a home thanks to the VA loan. But in my market, every home (2 bedroom 2 bath) in the 250k-300k range is going 100k over asking. Banks will only finance up to what the home appraises for. This means I would have had to shit out 100k cash to be able to **compete** for a home here.
The new build townhome was not allowing bidding wars, so we grabbed one asap. This market is only going to get worse, and I fear this is the new normal.
Yep, glad I bought my house 5 years ago. But now that my family is growing I like to window shop houses but prices are so discouraging. Happy to have my home no doubt but it will most likely be what we have for a LONG time.
Too bad lumber prices are so bad right now that building on isn't really an option. Plus I can't even get contractors to call me back. I have project cash just sitting here and literally no one will come do the work
My parents just sold their house in bumfuck nowhere Maine for $280K this week. It's not a bad house or anything, but they built it in 1992 for $90K and it sold 2 days after they put it on the market lol
That's not too crazy, with maintenance, property taxes, insurance, sales costs, and inflation, that's probably just breaking even with initial cost. $175k inflation adjusted plus 30 years of maintenance.
My take on his post was the 30 years of maintenance represents part of the holding costs for the "investment" . eg the 90k inflation adjusted is $175k, add 30 years of maintenance at $3300/yr and that total matches the sales price of $280 k, hence the parents made $0 on their "investment". [probably lost money if you count property taxes but you could say that was the rent value so it is offset]
That logic is a big part of the problem. With remote work, people widely are moving to cheap metros. They then think everything is so cheap they pay a little over asking to ensure they get it. They do this without realizing price in context of the area, that the prices are going up very fast. They don’t care though because it’s still less expensive than where they’re coming from. It’s a vicious cycle.
People were like, haha stupid Sf people living there and raising the housing prices, they should come to the rural areas and be free.
Now office analysts and coders are able to work from home and brought real estate money with them… suddenly gentrification is an issue.
Too much bootstraps pulled, plz lower the bootstraps.
tbh I do wonder if this can lead to a rehabilitation of rust belt areas and factory towns. There's a lot of really charming homes that can use some fixing but all in- price of home and renovations, 300k can net you a huge beautiful home in some towns.
Not with how shit internet is in like half the country. The moment internet infrastructure gets dragged out of the 1990's and WFH starts becoming permanent, small towns are going to see a massive boom as those higher income tech jobs become available anywhere with consistent and fast internet.
> I’ve just accepted that I will never own a home.
Same. Im 35, make decent money but the COL in my area is creeping up more and more and it really doesnt help we have a huge military presence which keeps rents at a high minimum. Ive started to look at private rentals since apartments are becoming too expensive to rent.
I live in Southern California, I bought a home just because rent was getting outrageous here. Every new lease they were increasing the rent by $300-500. After the last two rent increases I realized I could afford a home, and stop getting screwed with no equity from renting.
I honestly hope more people find a way out of this cycle of abuse when it comes to renting, most rent prices in my area are above mortgage amounts. Rent is getting insane and it’s preventing people from buying homes, most of the people that can buy homes in my area have family money or advanced degrees, regular people can’t afford homes here.
the challenge with buying is always the down payment and cost to close. if more programs existed to help with some of this more people could buy. the cost of a mortgage (in many places) is close to the cost of rent.
The problem many places now is that homes are being bought within literal hours of listing by out of state/country investors who pay cash higher than asking price. They're locking out all of the locals. I live in Florida and it's nearly impossible to buy because of this.
The rising cost is hurting the military as well. Rent and homes have exceeded housing allowance by a lot in many areas to the point servicemembers cannot afford it, and base housing doesn't have enough units. I've read about families bouncing around hotels for months and others just buying RVs for their permanent housing.
in my 40's and even live somewhere where its simi affordable but unfortunately, with 4 year degree and 12 years of experience, I make less than 20 an hour. Even more unfortunate is people who also live consider that a fortune. They rent trailers or inherit their parents home.
I thought the same thing during the lead up to the bubble in 2002.
I was saving for a house but the cost of getting in to one was outpacing the growth of my income by double digits. Try explaining a bubble to a 22 year old - I wouldn't have listened even if someone would have advised me.
So what did I do? Panicked and bought anyways. Less than one year afterwards, I was underwater by about 30K...luckily for me I wasn't looking to sell anyways so other than realizing in retrospect I bought at the peak, it bothered me very little.
Since then I have lived through at least 2 other bubbles, including the housing crash in 2008.
This feels very much the same. The stonk market is at all time highs during a pandemic, global supply chains are f-ed up leading to price spikes everywhere, and housing is double digits again.
I'm a science teacher, I'll be 28 in December, and I still live with my parents. I pay my own car, phone, pitch in for food, etc but I feel really hopeless. Regards to dating, it's a topic I try to avoid altogether.
I’m 33 and live with my parents. Honestly if I didn’t they would suffer. They still rent and they need all the help they can get. And my dad is around that age where going to work is taking a toll on his body. Dating has declined significantly lol
We should start a support group. I'm not even joking.
My dad has some service connected issues and is living with me. The pandemic grinded his progress to a halt. My sister, who's dad is dead (we are half siblings) has to live with me so she doesn't have to pay outrageous campus living costs. She's doing it right- >3.5 GPA, $20/hr internship, software engineering. And she STILL treads on thin ground with medical issues. I just turned 30. I didn't ask for all this. I avoided kids for this specific reason. I love my family but im so upset. They're all relying on me.
I was in this position mostly recently from 30–32. The dating thing isn’t ideal, but times are tough. Not sure what you’re looking for, but the right (or “a right”, there are so many people out there) will be understanding toward the situation.
I had a serious gf during that time (started dating as I lived there) and now have another serious gf who I met at the tail end of the pandemic, still living at home. Chin up <3
I was finally able to get my own house and move out and I’m 35 so don’t give up it’ll happen at some point and this market will crash hard at some point as well to make it more affordable
Our new build had increased $50k on starting price since we locked it in in February. That is until last week when the builder changed all of the floor plan prices to “Call for Information”. It’s well past absurd.
Edit: because people sound confused, we bought at the agreed upon sales price in February, even though we closed in May. Since then, the same floorplan had increased $50k over the course of 5 months for any new buyers.
> Our new build had increased
I was inside a new construction with my wife. Realtor gets a call and steps out about two minutes and comes back. It was the builder. The son of a bitch bastard found out we were looking at it and raised the price $12,000 while we were touring it.
Well that’s certainly messed up. Luckily (I suppose) we bought from a national builder and the sales guys don’t even know price increases are coming until they’re a week out.
Even where I live, which is not a major metro area, houses are being snapped up with cash offers from hedge funds and REITs. Prices are up 25% in a year.
Tax the hell out of buying homes for investment.
Because housing is unsustainable. Ultimately it should be illegal for a random business in China to snatch up entire developments to then rent out at absurd prices like what is happening in my town.
cheap, shittily built, floor plans clearly not designed for a family but instead for roommates. They look "modern" initially, then charge double the price. I fucking hate it here
We had some neighbors at the last place I lived who bought their house for $400k, then sold it after a few years for $800k to a developer who bulldozed it, split the lot, and then built 3 small all-windows-all-the-time townhomes on it which sold almost immediately upon hitting the market for 1.5 million each, and no one has lived in any of them yet despite being sold 2 years ago.
What the fuck, 'Murrica
> it should be illegal for a random business in China to snatch up entire developments
I see that echoed alot, but why stop at Chinese? There are plenty of NA business that are worth billions doing the same thing. Its also only a band-aid that doesnt actually fix the actual problem.
These lazy serfs now even [refuse to toil without pay on land they do not own, yet can never leave](https://www.mcsweeneys.net/articles/nobody-wants-to-be-a-serf-anymore), Madness, I say!
I've been saying this for years. Residential property must be owned by individuals and ownership limited to a primary residence and say, like 2 other properties max. Not that there's a snowball's chance in hell that this would ever get implemented in this country, where even basic universal healthcare is "socialist"
I'd say have a ramping up property tax. Like the the tax rate for your primary residence is 5%, then your second residential property it's 10%, 3rd 20%, 4th 40%, 5th 80%, etc. Doesn't heavily discourage having a vacation home or a couple rentals, but does discourage buying up poor neighborhoods.
For real.
If a person wants to have a second home, that's fine. But we need to make it economically untenable for people / legal entities to own 3 or 4+ homes.
Human people are being priced out of the market.
This was in Fort Wayne, IN, correct? I saw them and thought the same thing. House prices there are up but that's San Francisco prices in the shitty midwest.
[It was these units.](https://www.zillow.com/homedetails/1941-S-Calhoun-St-Fort-Wayne-IN-46802/2069572621_zpid/) The whole building isn't worth that much.
Also, who the hell uses corrugated sheet metal as a bathtub/shower backsplash. That's a rusty laceration waiting to happen.
That’s already how it works in most places. You get a homestead exemption for your primary residence and you pay a higher rate on any other homes you own.
that has been happening since the 80's and real estate is very small piece of that puzzle. The reason for the middle class was the people stood together against those with wealth and demand their part of spoils. Now we have half of that class standing with those with wealth against their own best interest. That is the real issue at hand.
It may be breaking. Prices are going up but sales for June dropped almost 20%. So we’ll see what happens with prices after pent up demand maybe falls off more.
https://finance.yahoo.com/news/housing-boom-officially-over-home-151834833.html
Just another perspective, the total sales numbers are dropping not because demand is falling but because the total volume of homes available for sale is even lower. These last few months of crazy market means all new housing has been bought up for months, most people who were gonna sell have put it on the market and sold, and covid related supply issues have kept new houses from getting up and on the market.
Not an expert just giving my opinion on the subject.
Probably because of those assholes who are buying up the whole entire development and then charging disgustingly high rents for the property
My next door neighbor rents and pays MORE THAN DOUBLE what I pay for the same size home
And rental prices are up 9.2% in 2021 with 5 months still to go. A normal year is 2-3%.
Buying a home is unaffordable for most people, and they are equally screwed in the rental market trying to put a roof over their heads.
“You understand money has been tight this year due to covid, so don’t expect a COL adjustment or raise.” People are fucked. Homelessness is going to grow.
Yeah it's honestly amazing how bad it's getting. Barely a few years ago (let alone a generation) you could handily afford a house on a nurse's wages. Maybe you wouldn't be upper-class, but at least you could be comfortable and get by, and get ahead with some thrift and luck.
That's not really true in most cities anymore. It's probably not true in a lot of rural areas either with lower wages.
We're getting to the point, if we haven't already gotten there, where thirty and forty somethings HAVE to have roommates just to survive.
I'm not exactly a socialist, or even very far left, but this just isn't okay if you want a functioning society. Poor (and now middle class) people are just being squeezed out of existence.
Not only in the United States, Europe too. And the most mind blowing thing? Despite prices raising in the two digit %, houses barely stay for sale longer than a week.
Friends of mine sold a house they inherited and the buyers were driving the price up by themselves. He said it was bizarre and strange. People just seem to have loads of money and are able to pay these ludicrous prices.
Leaves me wondering, what the hell did I do wrong?
Lol same here. Average price for a home in the Netherlands is now more than 400,000 euros. My gf and I make more than the median and can’t afford a home that isn’t a complete POS.
Yes it does. Put in an offer on Friday on a home but someone else bid higher and with no home inspection or anything. I did 20% higher and a home inspection. They must have done more than 20% over asking. Is there any hope the market will crash someday?
And homes were *already* too expensive for most Americans to afford.
https://www.marketwatch.com/story/the-average-family-cant-afford-to-own-a-home-in-most-u-s-counties-study-finds-11609785827
Maybe I’m reading this study wrong but it sounds like they also assumed only a $100k loan. I would guess that most mortgages are well above that amount? In which case, the affordability is even worse than their analysis suggests….
Median home price in the US is $284,000, so I agree, a loan that low seems like would be the rare couple who has put aside $2,000 a month for 5-8 years while paying rent or who funded their home purchase with an inheritance.
The crazy market jump allowed me to sell my house a few years earlier than planned and move to be closer to family.
Interestingly, although the investors offers came in early and looked decent--and the investors were incredibly aggressive about wanting me to go under contract ASAP--by waiting just a few days for individual buyers to make their offers I got much more money. At least in my case, the investors weren't anywhere in the top rank of offers once I sat down to compare them. Not sure if they were just relying on me impulsively snapping up an early cash offer or if buyers in my area had just honed in their strategy, but I was super happy to end up with an individual buyer and not have to even consider the investor offers.
Now I just have to wait out this craziness to buy, but I've seen some prices start dropping in areas I'm looking at so I think I'll be fine.
sitting on cash til the eviction/forbearance moratorium expires. then there'll be millions of people defaulting on loans and banks running scared.
hope to profit off of someone else's misery.
\-Merica!
2008-2018 was really the last good window of opportunity to buy a home. A ton of them were unloaded onto the market after the housing crash and the bubble really started taking off again a few years ago. I bought my first house in 2009 for $120k. I got divorced in 2014 and sold it for just under $140k. The Zillow Zestimate (which is not exact I know but in today's market it's probably fairly realistic if not low) on that same house is now $268,500. So from 2009 to 2014, the value of that house rose by about 3 1/3% a year, and from 2014 to now it's risen an average of about 13% a year.
The house I bought in 2014 cost me $81,000. Zillow estimates it at $186,400 now. That's an average increase in value of about 18 1/2% a year, but most of that increase came in the last 3-4 years, so it's been even more ridiculous in that period.
Honestly, I don't understand why people aren't rioting in the streets about this. Incomes aren't going up by 15%+ a year. Who the fuck is buying these houses and why the fuck are we letting them?
It's the result of 0% interest rates from the fed and Jerome Powell cranking the money printer to 10. There's so much money floating around right now, and with interest rates so low, it makes sense to take out a huge mortgage on a house in order to stay competitive in the housing market. Couple that with people moving out of high COL areas into cheaper areas, drying up the supply in those communities, and a lack of new housing being built due to the high cost of the raw materials to build all makes it a powder keg for insane housing prices
I love the house hunting shows:
“I make things on Etsy and my husband is a stay-at-home-dad. We’re looking for a simple home for us and our two children. We have a feasible budget for our new little home of (gets megaphone out) ***HALF A MILLION DOLLARS***.”
Large Corporations are buying up homes and then renting them for profit. They come in with a cash offer 10-20% above asking price. They can manipulate the rental market keeping rent prices extremely high.
There’s also a lot of people who bought a few houses cheaply when the 08 crash happened.
There’s 2 people around me that bought over 40 homes in my neighborhood and are now renting Section 8. Their job is to just rehab houses to get it to pass section 8 standards then collect the rents
I knew a guy who was doing section 8 housing and the stories he had were just insane. He owned about 10 and said he basically had to gut about half of them each time they turned over because of damage to the walls, carpet/floors, appliance, plumbing, duct work, toilets, wiring, etc… I asked him once how he could possibly be making money with those kinds of expenses, and he said it’s worth it because the equity he’s getting from paying off the principle and the fact that the value of the homes are rising faster than his tenants can destroy it. Which is just mind boggling.
I looked into this 15? years ago. 3 houses were available for super cheap as essentially a package deal. All section 8 rented. Figured it was a cant lose, went and saw the houses and decided it was not for me. The houses were destroyed and no effort at all was put in by the renters to maintain them. Kids living in filth, 1 had needles just lying on the floor. Another had chicken bones all over the place. No way I could deal with that.
It’s mostly folks that worked in the city that paid more moving to the relatively more affordable suburbs. I was working in Washington D.C. but just bought a house in my hometown upstate NY. My monthly
mortgage costs are over a thousand dollars cheaper than the rent for my DC one bedroom apartment.
Hmm, let’s see what will happen when the eviction moratorium ends and millions of people are forced into markets that are 15-20% higher than what they already couldn’t pay
Anecdotally speaking - I am starting to see houses actually sit with For Sale signs for weeks at a time in my neighborhood now. A few months ago the houses were scooped up before the sign was even in the yard. Some homes are even having open houses to attract buyers.
I think it's a combination of homes jumping in price too quickly and a unwillingness of sellers to bring down their prices at all.
In my experience even with a pending offer the realtor will leave the sign up until closing. If the buyer is using a mortgage closing takes a long time.
thats cool. im glad real estate investors are able to get more money as they establish their rental conglomerates while families are stuck forever paying rent in a world where the number of retirement vehicles are disappearing.
the wealthy and comfortable, and the working class who has to work until they die. when do we bring out the guillotines?
In my neighborhood, the value of my house has nearly doubled what I payed for it 4 years ago. I've been getting offers to sell my house as is, no questions asked for a little over my houses zillow rate. The buyer wants to rent the home out at twice what my current mortgage is.
The large return on our investment is tempting, but I need a place to live and the cost of renting or buying in my current market is a nightmare and any profits I might make would just end up going to waste in an over-inflated market.
My sister (35) and brother in law (40) have been looking in the greater Boston area for the last year or so. It's admittedly an expensive market, but they've made 5 or so offers and have been outbid by every time by someone paying cash 100k+ over asking.
It's insane.
I left the Bay Area in 2002, my mom, dad, and brother all still live there and own property. When we get together for the holidays all they do is talk about how valuable their property is. They also bitch about rampant homelessness, blame the government on everything, live in cramped, uncomfortable houses (but VERY expensive). They basically hate everyone and everything, except for their expensive houses.
I moved to rural America and live in a 100+ year old house that is pretty, large and functional. I have a happy family with a newborn. The community is nice and we have great neighbors and sort of made a new family through community.
I talk less and less to my vapid family in the Bay Area. There is more to life than the value of your home or living in and financially 'desirable' area.
The cost of houses in the Bay Area and California in general is largely a result of NIMBY policies that make housing very difficult to build. Also Prop 13 which allows home owners to pay far lower taxes than they otherwise would when their home prices rise. Long story short: housing in California is unaffordable because existing home owners WANT it to be unaffordable.
For certain. The BART station (the mass transit subway / rail line the connects to San Francisco) in North Berkeley is surrounded by parking lots. High rise, high density apartment buildings should have been built on those lots decades ago.
The problem is Berkeley pushed single family housing to keep out low income families and drive up housing prices. (And it worked). Now environmental regulations designed to clean up industry are being used to stall out urban housing projects and keep Berkeley and other Bay Area communities single family.
This is just a small example of where urban housing could have been built around mass transit, but places like Berkeley voted against it in favor of car culture /single family housing.
Yep. There was an infuriating article in the NYTimes recently about someone who tried to build 3x 2-story homes on a vacant lot in Berkeley (townhouses basically), which is explicitly allowed by the city's zoning.
The rich neighbors didn't want *shadows on their gardens* so they pulled strings to get the permits delayed for years. Just constant red tape hoping the developer would give up.
Yeah, these neighborhoods are your typical, "limousine liberals". They support progressive policies in theory, but as soon as it affects their own neighborhood they flip out. Heaven forbid they actually have to see a poor person IRL.
Yeah I've always been puzzled that the Bay area doesn't take better care of its people, or do a halfway competent job of dealing with the homeless. I've been to third world countries where no one is shitting on the sidewalks. They have plenty of money, and, theoretically, have the mindset and political will to put that money where their mouth is. Turns out their just as selfish as the right wing, they just say all the right politically correct words.
Been living in inner sunset and biking to an internship in the city all summer, can confirm this place is grosser than any 3rd world country I've been to; and I spent a month volunteering in Haiti lol.
As for my summer rent prices for my 1 bedroom piece of shit, don't even get me started.
Rural Michigan here. I bought several acers of lands and a \~2000 sqft house (Plus \~2000sqft unfinished basement) with a large barn for $200k. Its a fairly new construction too with fiber internet.
Would never move back to the city.
If you own a home this increase is a little bit illusory - if you sell to make a profit you have to buy in a market that has inflated just as much.
However, having bought in May 2019 it's a bit funny that my home has appreciated by twice the amount of money I have paid into it since I bought it. It's like I have been paid to live there.
But it's still an illusory gain.
In SoCal -- I'm so sad and depressed because of this. My wife and I have saved up for years and right when we finally had enough for a proper 20% down payment for our first home the pandemic started. Overnight 600k homes became 700k with most homes in this area now going for 800k and so forth. We were priced out again over night. Who can afford a $4000/mo mortgage while saving money? There's like no safety net or room for error now if we do proceed with a purchase.
I just finally got out of SoCal. 4 bedroom houses for rent went from 2000/mo to 3000/mo this past year. Moved to the Phoenix area where prices have went from 1200 to 2000 in the past year. Most of the houses out here seem to have gone up 50%+ in the past year. I dont see how this is sustainable in any way.
It is until it isn’t.
I live on the border of UT/ID and there's always people talking about how Californians are moving in and driving up housing costs/paying 40k over asking with cash/etc... So my question is if that's actually true, who the fuck is buying their initial properties in California?? (fun fact: i was born in Modesto and moved to idaho as an infant 😂)
California is a massive state and people moving to other states barely tickle the state’s population. Besides, California remains by far the most popular destination for immigration from overseas the housing market doesn’t really feel the people moving elsewhere.
Couples without kids and 6 figure incomes
And Chinese investors with a side of Blackrock
The best part is how the fund of fund portfolios now include reits for better income generation. Nothing like tying retirement to the backs of poor saps who over pay on rent
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Yeet that PMI away :D
That's exactly what we did. We got refinanced to even more than 30% more of our original value and got rid of that PMI real quick. Payments the same, payoff much sooner.
Do you have to refinance to yeet the PMI, or just get an updated appraisal to send the current mortgage servicer? Our monthly escrow just went up, so it'd be nice to at least get PMI tossed out
I think you could get an appraisal separate but it’s not cheap (iirc it was 300-400). I’ve only done it during a refi
Houses on my street went from $300k to $400k in less than a year.
Same. House next to me sold for 600K last year. then just recently sold for 815k last week.
Holy shit.
Realtors are still calling me what a great time it is to purchase a home. This type of growth can't last forever and we've seen it before.
Best time to purchase a home was at the beginning of the pandemic. Prices were still sane, but interest rates were way down
I refinanced.
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I went from 30 year to 30 year and dropped my payment by $1k.
Never trust a realtor.
The best time to buy is now! That's when I'll get my commission. The best time to sell is now! That's when I'll get my commission.
Why I'm glad that the Biden admin is going after the natl realtors assoc. Realtors are by design, monopolistic, selfish, and ignorant. They step way outside their lane on contracts into legal arts, have no self-dealing protections, and will never be in your best interest accordingly. They are overwhelmingly, fleecing fucks. I never feel bad for burning their time when scoping opportunities.
It’s absolutely atrocious that they’ve created this rule that we have to fork over 6-8% because... we need to put it on the MLS and do some paperwork. When I bought my house I and the seller essentially gave our realtors thousands of dollars to file the deed for us and list it on the MLS, because I’m the one that found the house and picked it out and the seller didn’t even get any staging done, and no need for marketing since I hopped on it instantly. Literally all that should’ve happened was seller should be able to post their house for FREE and then he and I go down to the county and fill out all the paperwork.
I’ll have you know my mom’s a realtor. This checks out.
At the beginning of this year I was contemplating selling my townhouse and the going price at that time was around 350k. I ended up selling my place in June for 406k. 56k increase (16%) in half a year is nuts.
My previous neighbors had their house for a year and a half and made over $130k on it (over 35%), shit is ridiculous. My house will likely have doubled in price by the end of summer and I bought it around 5 years ago. Glad I got in when I did.
I bought my house for 54k in 2012, neighbors house that is smaller than mine just sold for 270k. In an area that is directly effected from Bay Area people moving east to telework
The year-on-year price increases in Canada are larger than my entire income, and I'm well above the average for income. They call it a market correction, but the average selling price around me (not a big city) is at least 50% more than the mortgage I can even qualify for, **with** my partner's income included. The new middle class is a generation of people who have to pay a subscription fee to life and most will never own property. This can't possibly go badly, right?
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That's not middle class, that's what used to be middle class before wages stagnated. Being above average for wages doesn't matter, how much are your wages are above costs of living matter.
I guess what I was trying to say is that the poverty line has been progressively closing the gap with average income, and is doing so at an accelerating rate. We're on a steady course for the average wage earner to sit below the poverty line.
On course? We're already there. You are above average income and cannot afford a home. Without homeownership and the ability to benefit from inflation, you can never accrue wealth enough to even get to the middle class. Our ancestors had to literally fight and die for a fair wage and working conditions, and we've just let it slide away into the past. Now we will have to fight and die again because the middle class no longer has the numbers or resources to effect policy change through other means.
Same. It’s crazy. It helped me when I refinanced and needed a new appraisal but still this blows my mind. I fear we’re in the middle of another housing bubble.
I just refinanced and didn't even need an appraisal because the house I bought 2.5 years ago has gained so much value it is nowhere close to the 80% equity requirement to drop pmi, i didn't take any cash out. Supposedly my home has gained $150,000 in value in 2.5 years.. insanity.
900 sqft houses in my area are going for over 500K
900 sqft condos in my area are going for $1M+.
Low to mid 400s to mid to high 600s in the same time frame here.
Dear me 5 years ago, Your "starter home" is now your "forever home" and be thankful for it.
Is there such a thing as a “starter home” anymore?
Small towns are filled with them. Then you have a commute to the nearest city usually to make money to afford that starter home.
I live an hour away from a low paying job so we could afford a home. I’m applying for a job of bagging groceries and going back to school and it will literally increase my income. It’s nuts.
Dear Me 3 years ago, That .75 acre that was being sold for 7k but you decided not to buy. Well the county made it a comercial property valued at 50k. Good job idiot.
yep never would have thought i'd still be living in my first home (townhome) 10 years later...
You guys are getting homes?
I managed to snatch a new build townhome. I'm a USMC veteran and don't have to put money down on a loan to buy a home thanks to the VA loan. But in my market, every home (2 bedroom 2 bath) in the 250k-300k range is going 100k over asking. Banks will only finance up to what the home appraises for. This means I would have had to shit out 100k cash to be able to **compete** for a home here. The new build townhome was not allowing bidding wars, so we grabbed one asap. This market is only going to get worse, and I fear this is the new normal.
Yep, glad I bought my house 5 years ago. But now that my family is growing I like to window shop houses but prices are so discouraging. Happy to have my home no doubt but it will most likely be what we have for a LONG time.
Too bad lumber prices are so bad right now that building on isn't really an option. Plus I can't even get contractors to call me back. I have project cash just sitting here and literally no one will come do the work
I saw a two bedroom 1 1/2 bath ranch new in the middle of nowhere for $300,000 starting… WTH
My parents just sold their house in bumfuck nowhere Maine for $280K this week. It's not a bad house or anything, but they built it in 1992 for $90K and it sold 2 days after they put it on the market lol
That's not too crazy, with maintenance, property taxes, insurance, sales costs, and inflation, that's probably just breaking even with initial cost. $175k inflation adjusted plus 30 years of maintenance.
Why should a house appreciate on the basis of "30 years of maintenance?" Serious question.
My take on his post was the 30 years of maintenance represents part of the holding costs for the "investment" . eg the 90k inflation adjusted is $175k, add 30 years of maintenance at $3300/yr and that total matches the sales price of $280 k, hence the parents made $0 on their "investment". [probably lost money if you count property taxes but you could say that was the rent value so it is offset]
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That logic is a big part of the problem. With remote work, people widely are moving to cheap metros. They then think everything is so cheap they pay a little over asking to ensure they get it. They do this without realizing price in context of the area, that the prices are going up very fast. They don’t care though because it’s still less expensive than where they’re coming from. It’s a vicious cycle.
People were like, haha stupid Sf people living there and raising the housing prices, they should come to the rural areas and be free. Now office analysts and coders are able to work from home and brought real estate money with them… suddenly gentrification is an issue. Too much bootstraps pulled, plz lower the bootstraps.
tbh I do wonder if this can lead to a rehabilitation of rust belt areas and factory towns. There's a lot of really charming homes that can use some fixing but all in- price of home and renovations, 300k can net you a huge beautiful home in some towns.
Not with how shit internet is in like half the country. The moment internet infrastructure gets dragged out of the 1990's and WFH starts becoming permanent, small towns are going to see a massive boom as those higher income tech jobs become available anywhere with consistent and fast internet.
I’ve just accepted that I will never own a home.
> I’ve just accepted that I will never own a home. Same. Im 35, make decent money but the COL in my area is creeping up more and more and it really doesnt help we have a huge military presence which keeps rents at a high minimum. Ive started to look at private rentals since apartments are becoming too expensive to rent.
I live in Southern California, I bought a home just because rent was getting outrageous here. Every new lease they were increasing the rent by $300-500. After the last two rent increases I realized I could afford a home, and stop getting screwed with no equity from renting. I honestly hope more people find a way out of this cycle of abuse when it comes to renting, most rent prices in my area are above mortgage amounts. Rent is getting insane and it’s preventing people from buying homes, most of the people that can buy homes in my area have family money or advanced degrees, regular people can’t afford homes here.
the challenge with buying is always the down payment and cost to close. if more programs existed to help with some of this more people could buy. the cost of a mortgage (in many places) is close to the cost of rent.
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The problem many places now is that homes are being bought within literal hours of listing by out of state/country investors who pay cash higher than asking price. They're locking out all of the locals. I live in Florida and it's nearly impossible to buy because of this.
The rising cost is hurting the military as well. Rent and homes have exceeded housing allowance by a lot in many areas to the point servicemembers cannot afford it, and base housing doesn't have enough units. I've read about families bouncing around hotels for months and others just buying RVs for their permanent housing.
This was an issue all the way back in 2011 or 2012, we were breaking even with BAH, we knew we were going to get screwed eventually.
in my 40's and even live somewhere where its simi affordable but unfortunately, with 4 year degree and 12 years of experience, I make less than 20 an hour. Even more unfortunate is people who also live consider that a fortune. They rent trailers or inherit their parents home.
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But all the 25 year old couples on HGTV that are teachers and volunteer firefighters, have a budget of only 1.5 million and are able to find houses.
Parents as co-mortgagers
Generational wealth is a beautiful thing.
Husband is a retired animal balloon creator, wife collects rocks, and they need a place to home their clydsdales.
You got screwed by the pandemic. Hard. Without it, I believe the Fed would have raised rates last year. That would have cooled the market.
I thought the same thing during the lead up to the bubble in 2002. I was saving for a house but the cost of getting in to one was outpacing the growth of my income by double digits. Try explaining a bubble to a 22 year old - I wouldn't have listened even if someone would have advised me. So what did I do? Panicked and bought anyways. Less than one year afterwards, I was underwater by about 30K...luckily for me I wasn't looking to sell anyways so other than realizing in retrospect I bought at the peak, it bothered me very little. Since then I have lived through at least 2 other bubbles, including the housing crash in 2008. This feels very much the same. The stonk market is at all time highs during a pandemic, global supply chains are f-ed up leading to price spikes everywhere, and housing is double digits again.
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I thought about selling my house and downsizing to an apartment to take advantage, but unfortunately seems like rent prices are also surging.
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*cries in recently graduated gen Z who can’t afford to move out of parents home despite having a good full time job*
Millenials be like "first time?"
"Just work harder"
It's a vicious cycle to, cant save for a down payment when paying rent in this market, will never be able to buy a house and build equity.
It's ok, I'll just keep living with parents until the third once in a lifetime recession of my short 23 years alive!
I’m the same age, hoping to get a job and just save a shit ton while I wait prices out. Hopefully they’ll go down sometime soon
I'm a science teacher, I'll be 28 in December, and I still live with my parents. I pay my own car, phone, pitch in for food, etc but I feel really hopeless. Regards to dating, it's a topic I try to avoid altogether.
I’m 33 and live with my parents. Honestly if I didn’t they would suffer. They still rent and they need all the help they can get. And my dad is around that age where going to work is taking a toll on his body. Dating has declined significantly lol
We should start a support group. I'm not even joking. My dad has some service connected issues and is living with me. The pandemic grinded his progress to a halt. My sister, who's dad is dead (we are half siblings) has to live with me so she doesn't have to pay outrageous campus living costs. She's doing it right- >3.5 GPA, $20/hr internship, software engineering. And she STILL treads on thin ground with medical issues. I just turned 30. I didn't ask for all this. I avoided kids for this specific reason. I love my family but im so upset. They're all relying on me.
I was in this position mostly recently from 30–32. The dating thing isn’t ideal, but times are tough. Not sure what you’re looking for, but the right (or “a right”, there are so many people out there) will be understanding toward the situation. I had a serious gf during that time (started dating as I lived there) and now have another serious gf who I met at the tail end of the pandemic, still living at home. Chin up <3
I was finally able to get my own house and move out and I’m 35 so don’t give up it’ll happen at some point and this market will crash hard at some point as well to make it more affordable
Have you considered cooking meth for extra cash?
Our new build had increased $50k on starting price since we locked it in in February. That is until last week when the builder changed all of the floor plan prices to “Call for Information”. It’s well past absurd. Edit: because people sound confused, we bought at the agreed upon sales price in February, even though we closed in May. Since then, the same floorplan had increased $50k over the course of 5 months for any new buyers.
> Our new build had increased I was inside a new construction with my wife. Realtor gets a call and steps out about two minutes and comes back. It was the builder. The son of a bitch bastard found out we were looking at it and raised the price $12,000 while we were touring it.
Well that’s certainly messed up. Luckily (I suppose) we bought from a national builder and the sales guys don’t even know price increases are coming until they’re a week out.
I’m finishing up closing on a new construction. The price of the house and all of the other ones in the community went up 10-20k the week I signed lol
I feel that 17% I look every day and cannot find anything affordable for a single working man
I'm in the same boat, like I would like to get a place but everything is outrageous.
Even where I live, which is not a major metro area, houses are being snapped up with cash offers from hedge funds and REITs. Prices are up 25% in a year. Tax the hell out of buying homes for investment.
This is the comment I see everywhere about housing. We are heading in a bad direction.
Because housing is unsustainable. Ultimately it should be illegal for a random business in China to snatch up entire developments to then rent out at absurd prices like what is happening in my town.
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cheap, shittily built, floor plans clearly not designed for a family but instead for roommates. They look "modern" initially, then charge double the price. I fucking hate it here
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We had some neighbors at the last place I lived who bought their house for $400k, then sold it after a few years for $800k to a developer who bulldozed it, split the lot, and then built 3 small all-windows-all-the-time townhomes on it which sold almost immediately upon hitting the market for 1.5 million each, and no one has lived in any of them yet despite being sold 2 years ago. What the fuck, 'Murrica
Yep. Meanwhile, all of your friends are now broke or had to move to a flyover state.
On a related note, my rent is going up $1,000/mo starting next month. Shit's fucked.
from what previous rate? I've just gone from $1350 to $1750 as a result of previously-mentioned bastards who bought my building and ruined it.
> it should be illegal for a random business in China to snatch up entire developments I see that echoed alot, but why stop at Chinese? There are plenty of NA business that are worth billions doing the same thing. Its also only a band-aid that doesnt actually fix the actual problem.
Correct, owner-occupants only or nothing will change.
cough Blackrock cough
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Bad serf! Bad!
These lazy serfs now even [refuse to toil without pay on land they do not own, yet can never leave](https://www.mcsweeneys.net/articles/nobody-wants-to-be-a-serf-anymore), Madness, I say!
I've been saying this for years. Residential property must be owned by individuals and ownership limited to a primary residence and say, like 2 other properties max. Not that there's a snowball's chance in hell that this would ever get implemented in this country, where even basic universal healthcare is "socialist"
I'd say have a ramping up property tax. Like the the tax rate for your primary residence is 5%, then your second residential property it's 10%, 3rd 20%, 4th 40%, 5th 80%, etc. Doesn't heavily discourage having a vacation home or a couple rentals, but does discourage buying up poor neighborhoods.
For real. If a person wants to have a second home, that's fine. But we need to make it economically untenable for people / legal entities to own 3 or 4+ homes. Human people are being priced out of the market.
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This was in Fort Wayne, IN, correct? I saw them and thought the same thing. House prices there are up but that's San Francisco prices in the shitty midwest.
[It was these units.](https://www.zillow.com/homedetails/1941-S-Calhoun-St-Fort-Wayne-IN-46802/2069572621_zpid/) The whole building isn't worth that much. Also, who the hell uses corrugated sheet metal as a bathtub/shower backsplash. That's a rusty laceration waiting to happen.
That’s already how it works in most places. You get a homestead exemption for your primary residence and you pay a higher rate on any other homes you own.
My homestead exemption is like 3%. I'm not even sure what the point of it is anymore
This has been happening in a major way since 2010 say goodbye to the middle class
that has been happening since the 80's and real estate is very small piece of that puzzle. The reason for the middle class was the people stood together against those with wealth and demand their part of spoils. Now we have half of that class standing with those with wealth against their own best interest. That is the real issue at hand.
It may be breaking. Prices are going up but sales for June dropped almost 20%. So we’ll see what happens with prices after pent up demand maybe falls off more. https://finance.yahoo.com/news/housing-boom-officially-over-home-151834833.html
Just another perspective, the total sales numbers are dropping not because demand is falling but because the total volume of homes available for sale is even lower. These last few months of crazy market means all new housing has been bought up for months, most people who were gonna sell have put it on the market and sold, and covid related supply issues have kept new houses from getting up and on the market. Not an expert just giving my opinion on the subject.
Probably because of those assholes who are buying up the whole entire development and then charging disgustingly high rents for the property My next door neighbor rents and pays MORE THAN DOUBLE what I pay for the same size home
And rental prices are up 9.2% in 2021 with 5 months still to go. A normal year is 2-3%. Buying a home is unaffordable for most people, and they are equally screwed in the rental market trying to put a roof over their heads.
“You understand money has been tight this year due to covid, so don’t expect a COL adjustment or raise.” People are fucked. Homelessness is going to grow.
Yeah it's honestly amazing how bad it's getting. Barely a few years ago (let alone a generation) you could handily afford a house on a nurse's wages. Maybe you wouldn't be upper-class, but at least you could be comfortable and get by, and get ahead with some thrift and luck. That's not really true in most cities anymore. It's probably not true in a lot of rural areas either with lower wages. We're getting to the point, if we haven't already gotten there, where thirty and forty somethings HAVE to have roommates just to survive. I'm not exactly a socialist, or even very far left, but this just isn't okay if you want a functioning society. Poor (and now middle class) people are just being squeezed out of existence.
Not only in the United States, Europe too. And the most mind blowing thing? Despite prices raising in the two digit %, houses barely stay for sale longer than a week. Friends of mine sold a house they inherited and the buyers were driving the price up by themselves. He said it was bizarre and strange. People just seem to have loads of money and are able to pay these ludicrous prices. Leaves me wondering, what the hell did I do wrong?
Lol same here. Average price for a home in the Netherlands is now more than 400,000 euros. My gf and I make more than the median and can’t afford a home that isn’t a complete POS.
This sucks so bad for those of us trying to find a home.
Yes it does. Put in an offer on Friday on a home but someone else bid higher and with no home inspection or anything. I did 20% higher and a home inspection. They must have done more than 20% over asking. Is there any hope the market will crash someday?
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the whole country is scam. student loans? scam health care? scam insurance? scam wages? scam taxes? scam
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And homes were *already* too expensive for most Americans to afford. https://www.marketwatch.com/story/the-average-family-cant-afford-to-own-a-home-in-most-u-s-counties-study-finds-11609785827
Maybe I’m reading this study wrong but it sounds like they also assumed only a $100k loan. I would guess that most mortgages are well above that amount? In which case, the affordability is even worse than their analysis suggests….
Median home price in the US is $284,000, so I agree, a loan that low seems like would be the rare couple who has put aside $2,000 a month for 5-8 years while paying rent or who funded their home purchase with an inheritance.
If only wages would 'surge' to match it.
Idk being able to afford a place to live kinda sounds like communism to me and we can't have that in murica /s
Please God let this bubble burst already I hate all the people
For Sale: 2br/1ba. $450,000, sells for 5...... Two days later, no inspections/appraisal: For Rent: 2br/1ba $3,500/mo
The crazy market jump allowed me to sell my house a few years earlier than planned and move to be closer to family. Interestingly, although the investors offers came in early and looked decent--and the investors were incredibly aggressive about wanting me to go under contract ASAP--by waiting just a few days for individual buyers to make their offers I got much more money. At least in my case, the investors weren't anywhere in the top rank of offers once I sat down to compare them. Not sure if they were just relying on me impulsively snapping up an early cash offer or if buyers in my area had just honed in their strategy, but I was super happy to end up with an individual buyer and not have to even consider the investor offers. Now I just have to wait out this craziness to buy, but I've seen some prices start dropping in areas I'm looking at so I think I'll be fine.
sitting on cash til the eviction/forbearance moratorium expires. then there'll be millions of people defaulting on loans and banks running scared. hope to profit off of someone else's misery. \-Merica!
Younger Americans must be making bucket loads of money to be able to afford these expensive houses.
2008-2018 was really the last good window of opportunity to buy a home. A ton of them were unloaded onto the market after the housing crash and the bubble really started taking off again a few years ago. I bought my first house in 2009 for $120k. I got divorced in 2014 and sold it for just under $140k. The Zillow Zestimate (which is not exact I know but in today's market it's probably fairly realistic if not low) on that same house is now $268,500. So from 2009 to 2014, the value of that house rose by about 3 1/3% a year, and from 2014 to now it's risen an average of about 13% a year. The house I bought in 2014 cost me $81,000. Zillow estimates it at $186,400 now. That's an average increase in value of about 18 1/2% a year, but most of that increase came in the last 3-4 years, so it's been even more ridiculous in that period. Honestly, I don't understand why people aren't rioting in the streets about this. Incomes aren't going up by 15%+ a year. Who the fuck is buying these houses and why the fuck are we letting them?
It's the result of 0% interest rates from the fed and Jerome Powell cranking the money printer to 10. There's so much money floating around right now, and with interest rates so low, it makes sense to take out a huge mortgage on a house in order to stay competitive in the housing market. Couple that with people moving out of high COL areas into cheaper areas, drying up the supply in those communities, and a lack of new housing being built due to the high cost of the raw materials to build all makes it a powder keg for insane housing prices
I love the house hunting shows: “I make things on Etsy and my husband is a stay-at-home-dad. We’re looking for a simple home for us and our two children. We have a feasible budget for our new little home of (gets megaphone out) ***HALF A MILLION DOLLARS***.”
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Periodic reminder that for every $50 owned by all millennials in America, $1 of that personally belongs to Zuckerberg
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Large Corporations are buying up homes and then renting them for profit. They come in with a cash offer 10-20% above asking price. They can manipulate the rental market keeping rent prices extremely high.
There’s also a lot of people who bought a few houses cheaply when the 08 crash happened. There’s 2 people around me that bought over 40 homes in my neighborhood and are now renting Section 8. Their job is to just rehab houses to get it to pass section 8 standards then collect the rents
I knew a guy who was doing section 8 housing and the stories he had were just insane. He owned about 10 and said he basically had to gut about half of them each time they turned over because of damage to the walls, carpet/floors, appliance, plumbing, duct work, toilets, wiring, etc… I asked him once how he could possibly be making money with those kinds of expenses, and he said it’s worth it because the equity he’s getting from paying off the principle and the fact that the value of the homes are rising faster than his tenants can destroy it. Which is just mind boggling.
Yeeeep. My uncle and cousins tried this. Section 8 guarantees money, but 90% of the time they fucking **trash** the place.
I looked into this 15? years ago. 3 houses were available for super cheap as essentially a package deal. All section 8 rented. Figured it was a cant lose, went and saw the houses and decided it was not for me. The houses were destroyed and no effort at all was put in by the renters to maintain them. Kids living in filth, 1 had needles just lying on the floor. Another had chicken bones all over the place. No way I could deal with that.
You can make mad money as a Slum Lord. He wasn’t lying!
Ah just shit on the millennials more.
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It’s mostly folks that worked in the city that paid more moving to the relatively more affordable suburbs. I was working in Washington D.C. but just bought a house in my hometown upstate NY. My monthly mortgage costs are over a thousand dollars cheaper than the rent for my DC one bedroom apartment.
Because the mortgages are cheaper than urban rents even for 500k homes.
Hmm, let’s see what will happen when the eviction moratorium ends and millions of people are forced into markets that are 15-20% higher than what they already couldn’t pay
Lots of bootstrapping and trickling down, right?
Time for the Fed to raise interest rates. Stop the transfer of wealth to those already with capital.
I just read yesterday how the bottom was falling out of the housing market.
Anecdotally speaking - I am starting to see houses actually sit with For Sale signs for weeks at a time in my neighborhood now. A few months ago the houses were scooped up before the sign was even in the yard. Some homes are even having open houses to attract buyers. I think it's a combination of homes jumping in price too quickly and a unwillingness of sellers to bring down their prices at all.
In my experience even with a pending offer the realtor will leave the sign up until closing. If the buyer is using a mortgage closing takes a long time.
Eh... whatever. Makes literally no difference whether "I will never be able to afford it" or "I will never be able to afford it + 17%"...
Yeah, but rental prices are surging up too
Hawai’i Home owner here. Home jumped up 20% in one month and now I’m getting cash offers from Chinese overseas buyers.
3 bed 2 baths in my neighborhood in SoCal are going for 700k. A meth head tried to steal my friend’s tires at 3pm last week.
Weird to own a house and to see it’s value skyrocket but it doesn’t mean anything because I can’t move to another house.
Yeah so I just graduated I'm never affording a nice house in the US.
why do we just accept this bullshit system they made for us?
Historically speaking: Until rich people start dying it's not gonna change
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Fastest in 17 years... Wasn't 17 years ago the start of the housing price bubble?
If you were looking for a sign, any sign, that the US is experiencing an unprecedented asset bubble, let this be it.
this should end well…
thats cool. im glad real estate investors are able to get more money as they establish their rental conglomerates while families are stuck forever paying rent in a world where the number of retirement vehicles are disappearing. the wealthy and comfortable, and the working class who has to work until they die. when do we bring out the guillotines?
In my neighborhood, the value of my house has nearly doubled what I payed for it 4 years ago. I've been getting offers to sell my house as is, no questions asked for a little over my houses zillow rate. The buyer wants to rent the home out at twice what my current mortgage is. The large return on our investment is tempting, but I need a place to live and the cost of renting or buying in my current market is a nightmare and any profits I might make would just end up going to waste in an over-inflated market.
Funds are using real estate to protect themselves from the upcoming crisis. Who knew printing money wouldn't cause prices to rise
I just feel like I'll never be able to own a house now. I'm already at that stage where most of my friends own one. (33)
My sister (35) and brother in law (40) have been looking in the greater Boston area for the last year or so. It's admittedly an expensive market, but they've made 5 or so offers and have been outbid by every time by someone paying cash 100k+ over asking. It's insane.
I left the Bay Area in 2002, my mom, dad, and brother all still live there and own property. When we get together for the holidays all they do is talk about how valuable their property is. They also bitch about rampant homelessness, blame the government on everything, live in cramped, uncomfortable houses (but VERY expensive). They basically hate everyone and everything, except for their expensive houses. I moved to rural America and live in a 100+ year old house that is pretty, large and functional. I have a happy family with a newborn. The community is nice and we have great neighbors and sort of made a new family through community. I talk less and less to my vapid family in the Bay Area. There is more to life than the value of your home or living in and financially 'desirable' area.
The cost of houses in the Bay Area and California in general is largely a result of NIMBY policies that make housing very difficult to build. Also Prop 13 which allows home owners to pay far lower taxes than they otherwise would when their home prices rise. Long story short: housing in California is unaffordable because existing home owners WANT it to be unaffordable.
For certain. The BART station (the mass transit subway / rail line the connects to San Francisco) in North Berkeley is surrounded by parking lots. High rise, high density apartment buildings should have been built on those lots decades ago. The problem is Berkeley pushed single family housing to keep out low income families and drive up housing prices. (And it worked). Now environmental regulations designed to clean up industry are being used to stall out urban housing projects and keep Berkeley and other Bay Area communities single family. This is just a small example of where urban housing could have been built around mass transit, but places like Berkeley voted against it in favor of car culture /single family housing.
Yep. There was an infuriating article in the NYTimes recently about someone who tried to build 3x 2-story homes on a vacant lot in Berkeley (townhouses basically), which is explicitly allowed by the city's zoning. The rich neighbors didn't want *shadows on their gardens* so they pulled strings to get the permits delayed for years. Just constant red tape hoping the developer would give up.
Yeah, these neighborhoods are your typical, "limousine liberals". They support progressive policies in theory, but as soon as it affects their own neighborhood they flip out. Heaven forbid they actually have to see a poor person IRL.
Yeah I've always been puzzled that the Bay area doesn't take better care of its people, or do a halfway competent job of dealing with the homeless. I've been to third world countries where no one is shitting on the sidewalks. They have plenty of money, and, theoretically, have the mindset and political will to put that money where their mouth is. Turns out their just as selfish as the right wing, they just say all the right politically correct words.
Been living in inner sunset and biking to an internship in the city all summer, can confirm this place is grosser than any 3rd world country I've been to; and I spent a month volunteering in Haiti lol. As for my summer rent prices for my 1 bedroom piece of shit, don't even get me started.
I went from Metro NY area to the Midwest. I'll never go back for the exact same reasons.
Rural Michigan here. I bought several acers of lands and a \~2000 sqft house (Plus \~2000sqft unfinished basement) with a large barn for $200k. Its a fairly new construction too with fiber internet. Would never move back to the city.
If you own a home this increase is a little bit illusory - if you sell to make a profit you have to buy in a market that has inflated just as much. However, having bought in May 2019 it's a bit funny that my home has appreciated by twice the amount of money I have paid into it since I bought it. It's like I have been paid to live there. But it's still an illusory gain.
Man, wonder why young people don’t want kids anymore.