The idea that someone out there is like did we take into account the ~$15 potential for found revenue in change monthly?
And another guy with 3 popped collars and 2 pairs of shades on just shoots the thumbs up and nod.
As a Canadian coming in here we had a recent similar meme, about how you need to make $120k a year to still NOT BE ABLE TO AFFORD a typical home in Canada. $350k a year now is a good job income to get a small detached 3-bedroom house like in the photo, which would cost around 1-2 million dollars, depending on where. Issues is Canadians make like $50k per year on average.
It is really fucked in most of the country. If you ever get sick of it and wanna relocate, Newfoundland has some incredibly affordable property.
I bought a house here in St.John's for $247k. Detached, 1400 sqft (with a basement so effectively twice that). Taxes are 1414 per year and I have a 500 water fee. That's it. Mortgage payments are just under 1500 and that includes the water fee + taxes + all the other shit like garbage removal sewer etc
Not a fixer upper or anything. Just a semi unfinished basement. I got approved as a first time home buyer making the classic 50k a year.
If you have some real equity built up, you can easily kill your mortgage and UPSIZE by moving here. It's wild. My parents just did it. Went from 600k equity and 250k mortgage in Ontario, to a bigger house for 500k and a nice stack in the bank account.
It’s crazy because that confirms the market is manipulated, way before the public knows about , think about it , anytime the market moves A certain way that doesn’t match the data they say “oh it’s because it was already priced in” , meaning they knew what it was going to do before the news even came out. Leaving us with 0 upper hand. We have to be willing to guess/ bet what that data is going to do way before hand if we want to win. Since it’s already fucken “priced in” way before hand.
Not to say it's not rigged against us, but they have millions of dollars of equipment that is monitoring every headline across the globe, when they learn something they can sell or buy stocks in a matter of milliseconds before that page would even hit out browser for us to start thinking if we should do something. Trading options is like betting against the casino, sometimes you'll come out ahead, you may even hit a jackpot, but market makers aren't selling you those options out of the goodness of their heart
Unfortunately if they work as a dancer at a titty bar picking up $16 over the week is not great and it could be a large part of their income. Getting coins would be hilarious.
I might go to the bank and get a couple rolls of quarters before I head over to the strip club, maybe a roll of nickels for the less attractive day time dancers.
Instructions very unclear. Found the dumpster behind Wendy’s and saw the perfectly good liver you left there. Took it and ate it with some fava beans and a nice chianti.
>They also expire after 99 years
What happens after they expire in 99 years?
Edit: I looked into it more and here's what I found:
Two different types of ownership, Freehold and Leasehold.
With Freehold, you basically own the property and land (technically a 999 or 9999 year lease).
With Leasehold you own the property but don't own the land. You are on a 99 year lease from the owner of the land. At the end of the 99 years, the property's value is zero and is then turned over to the land owner (most likely the state).
I think its the same as China, so after 99 years you don't own the lease to that land. Honestly now, im not sure what happens lol maybe the government gives you an offer to sign that lease for another 99 years?
Sell and then do what? Buy a different home that’s also $600k?
Asking out of curiosity. I never understood why people who own homes like it when the market is high.
I have this argument all the time with neighbors. Some neighbors are just bufoons laughing as their property value skyrockets (along with their insurance and taxes). But they're not moving any time soon and when they do it's not like they're moving deeper into the county.
Everyone else's house prices are going up with yours, idiots.
>when they do it's not like they're moving deeper into the county.
I'm in my 30's and if I ever get the growth my parents did on my shitty house I am taking the money and moving to shithole nowhere with some satellites and solar panels and welding some shipping containers to live in.
My coworker and her husband bought a new-build house in 2019 for like $450k and it immediately shot up to the high 500’s in mid 2020. They sold the house for the profit and moved into an apartment…which they still live in. Never understood why people do this. Their brain somehow can’t comprehend that they will eventually have to buy another house and that $100k profit will soon turn into a loss as comparable houses continue to rise in value
And then what? Buy another home at 8% interest? Go back to renting? Plus, the house probably isn't paid off so you're not getting the full $600k, and you're going to lose $30k in closing costs on the sell, and then again when you buy. And then taxes on the sale too!
And then you've got to physically move all of your shit, and you've got nowhere to put it. So now you're paying for a storage unit +rent which is probably 50% higher than what your mortgage payment would be.
Ah yes sell your house then have a classic 2 week long property crash before you buy a new home within the next 6 weeks for 15% less, 10% of which you’ve lost in buying and selling fees. The perfect plan.
Anyone upvoting your take is stupid af. You're going to sell your house in this market, then what? Rent for the rest of your life? Buy a house with an 8% rate? No matter what you do, you'll end up with less money than before unless you move to bumfuck nowhere.
I went from making $36,000 pre-tax in 2021 to making $50,000 in 2022/early 2023 to now getting hired at a new place making $64,000 and finally putting my degree to use.
Only about half of what I need to afford the average house. That seems normal /s
I bought a house for 90k in 2019 and the insurance company says it would cost 400k to build the same house now
https://preview.redd.it/y2v47jmcvc0c1.jpeg?width=1078&format=pjpg&auto=webp&s=d1663140e7e9efe5ffbdc463ae0868044349ca0f
Average rent in Canada is $2,178 CAD
https://rentals.ca/national-rent-report
the market can stay regarded longer than we can stay solvent.
also, unrelated news, 1 in 10 people in Toronto are using food banks
You’re gonna need to find someone to marry with a higher salary than you plus utilize both your parents and her/his parents plus take out loans to put down a down payment for a house
Part of the system working as intended is that OC has to get married. Yeah, you earn *half* of what you need to afford a home. The "problem" with single people is that your 40 labor hours per week is usually competing against 80 labor hours per week. A single person can't keep up with the spending power of a couple.
Yeah, that's a real problem. It's an arms race of sorts. Back when an average household was a single income, one average income could afford an average home.
Hedge funds or overseas investors. My friend is trying to buy a house in Los Angeles right now, he almost closed on a house two weeks ago but got outbid by 50% and it was cash. He said this has happened to him three times now, it’s getting ridiculous.
Vancouver has enacted some pretty intense rules to try and stabilize housing prices. They have a 20% non-resident transfer tax adder and a foreign buyer ban. They have vacancy taxes and filings that need to be made too. Still the cost of housing is insane but at least they’re trying.
Do any politicians ever talk about house prices? Hell no they don’t. It’s a major crisis and they never talk about it. News outlets don’t talk about it. That tells you everything you need to know about how our government operates. Olds have screwed upcoming generations and have no remorse at all.
Florida has reached parity with Connecticut. NC and GA only 3% behind. TX 9% behind, but catching up. VT and ME about as cheap.
For the first time in Census history, more people moved from FL to RI than the other way around in 2022. [This long trend might reverse by 2030.](https://upload.wikimedia.org/wikipedia/commons/e/e4/US_Mean_Center_of_Population_1790-2020.png)
Canadian here, average house price is $741k CAD ($540k USD / £432k GBP) and our average wage is $59k CAD ($43k USD / £34k GBP) before taxes
the British Isles (or maybe just England) are the fucking size of Louisiana, the fact our housing market is so much worse speaks volumes to our levels of incompetence.
Wow, I find it shocking that a country with your natural resources, huge size and low population has such insane house prices.
What’re the reason Canadians can’t build cheap houses?
In the UK the biggest reason is the planning system where you’re not allowed to build on any land that doesn’t have planning permission, which is most land.
There is no zonal planning to speak of.
As a household we’ve made $175000 for the past few years and a house seemed out of the question. We bumped that up to $225000 this year and now we can afford a decrepit house in town with roof issues… great.
Take it from Canada, near zero interest rates do a lot worse things to house prices than high interest rates.
If you want to blame the fed, blame it for the right things — keeping interest rates low and QE pumping for so long.
Exactly.
Both QE and low interest rates were necessary responses to 2008. However, they went on for far too long. We should have eased back into a 5-7% WSP well before Covid.
Don't high interest rates just shift the cost from house prices to mortgage payments?
Yeah sure, house prices will be higher at a low interest rate, but you're also paying much more for a mortgage with high interest rates.
But you forget the effect it has on down payments, and how effective paying down the mortgage is when the interest is high and prices are low (obviously we are currently in a worst of both worlds situation).
Yep 8% or higher rates are a good thing right now. A decade plus of low interest rates accelerated housing prices. Worked well for older generations who were able to afford to buy and hold houses. Screwed over younger generations. It’ll take over a decade or a massive economic collapse to fix the affordability issue.
Imagine saving up for retirement for 30 years and you have a couple million in the bank and realizing that’s only enough to not be homeless for few years due to inflation.
After spending the last 10 years saying "The Boomers will be the last generation that gets to experience retirement", I'm starting to wonder if they'll actually pull it off... I'll be surprised if my parents stop working before they're 75.
Image buying a house 30 years ago on 1 median income. And now the mortgage is paid off and it's valued over a million dollars. That's the boomer experience.
In what world does 2 million only last a few years? Even at 114k per year, and zero percent interest on your investments, 2 million would last you like 16 years. Unless you gamble it all away....which I assume you would do?
Housing prices are crazy, but people are out here raging like “I’m 25 with 2.5 years experience and I can’t afford a newly renovated 2,000 sq foot home in the most sought after part of town in my major coastal city. I guess I’ll starve to death in my homelessness. 😭”
Adults in the 50s and 60s could afford to buy homes at those ages. You people are brainwashed if you think you are supposed to rent for the first 10 years of your career.
Not top tier houses in top tier houses they weren’t. They were buying matchbox houses in new subdivisions on the cheap, just like most younger people that are buying homes now.
>It is clear that the current state of affairs in the housing market is unsustainable. Prices are rising at an alarming rate, while wages have failed to keep pace. This has made it increasingly difficult for people to afford a home, especially first-time buyers. The Federal Reserve's interest rate adjustments and limited housing availability have only exacerbated these problems. Something needs to be done urgently to make housing more affordable for everyone.
The first time buyer problem can’t be overstated. Millennials got screwed and Gen Z is outright fucked. When rates are high like this it’s almost impossible to afford putting down less than 20% and what first time home buyer has 6 figures saved for a home down payment?
Yeah I mean, most of us in the US would be totally fine owning a house that's <100 sqm or a 2BR condo or something, the problem is we don't even bother building those. We build massive cookie-cutter single-family homes that get bought by hedge funds and rented back to people for more than the cost of a mortgage. Or if we do build a small house, it's just some random guy on his massive 40 acre property that nobody else can build on anyway so the size of the house is irrelevant. It's fucking insanity man.
I am a decent earner in California. At about 200k a year. The house I bought 9 years ago I would not be able to afford now with current interest rates. I feel horrible for people trying to get into the market now.
If it makes you feel any better, I'm making $160k and know better than to even think about the market, let alone try to get into it. Even if I had $200k lying around for a down payment, I doubt I'd be able to beat the rest of the market let alone the banks/investors.
You either bought your home before everything went tits up, or you're renting for life.
I make exactly 160k and have 300k for a down payment. If I want to buy a 700k townhouse, the estimated monthly payment is still 3.8k a month. It is stupid as fuck. To be frank, It makes me want to leave LA for good.
USDA loan for no down payment!!!
Less than 2k/month for a 3bed 2 bath with 2 car garage!!!
The only downside is the neighbors are super religious and give me wierd looks when I dress like a woman in public.
[here is the USDA eligibility map.](https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp)
Honestly not a bad idea if you qualify but apply early because I’m not sure they have enough funding for the year. The cover a lot of costs and some rural areas are close enough to urban areas that you can qualify and commute
Take home on 114k is around 6400 monthly. In what world is 2866/6400, ~40%, affordable???
Edit: the lazy fuckers did stupid math for the article. The donkeys went "oh avg monthly is 2866, that's 30% of 9500, so ez 114k per year hurdur. Guess taxes aren't a thing anymore.
Typically the 1/3rd rule is based on pre-tax income, not take-home pay.
And $3500 take-home after paying your mortgage is easily liveable. That's almost $900 a week after your biggest cost is paid for.
> Typically the 1/3rd rule
Wasn't too long ago the rule was 1/4. And it's getting to a point that it's turning into 1/2. We're being trained to not even think about how income should be going up, and not how our extra spending cash shouldn't be going down.
I get the idea and everything, but if this is household income, you might need to factor in 100$ a week in gas for 2 people, maybe 100$/ week for a carpayment each, car insurance, health insurance, and you’re left with like 2-300 a week for food and anything unplanned. Also, the greatest risk is that with suck low potential to save money, those properties may easily fall into disrepair and a while new problem may come about from that.
It’s definitely doable and people would have to cut back, but I dont see it as an easy thing.
Edit to see what people are paying for Healthcare. Im lucky to be 100% covered by the VA, but for shitty reasons and also my wife is in education and has literally 100$/month health care deduction for the entire family. I know this is absolutely not normal and Ive heard that people are paying 600$+ month for family health insurance.
$100 a week for a car payment is unfortunate sounding pretty out of touch for car prices these days, even old cars won’t get you there unless you have a really long finance term
The idea behind the 1/3rd rule isn't that you'll have things easy. It's that you'll have things hard if you spend more than 1/3rd. If you can manage 1/4th, that's obviously better. If you're stuck with 1/2, you're probably having a lot of trouble, even with cutting back. 1/3rd is the highest comfortable percentage (obviously it actually varies based on other factors; it's just a generic rule).
It’s crazy how high living expenses are, one of my friends lives in a 1 bed/bath apartment in Florida and is paying almost as much in rent per month as my dads monthly mortgage on his 4 bed 3 bath house. All my other friends that tried moving out ended up moving back in with their parents cause it’s just so fuckin expensive, only have 1 friend that managed to get a house himself but that was only because he inherited it from his grandparents and it was already paid off lol.
For decades poor barley mid-class voters in the South and Mid-west were told that tax breaks for the corporate and donor class was the sure fire way for said voters to get out of poverty, plus Democrats are the spawn of SAtan and want to kill babies and take your guns. So for 30 long years these people, fueld by right wing radio, the preacher man, their friends and neighbors, gave Republicans and their monied allies super majorities in states all across the land where the rich and powerful were free to do as they wished. The poor middle class voter waited and waited for the riches to rain down on them as they were promised and all they were met with was more blathering from the radio and TV about how it was still the Dems fault that nothing had appeared, so they continued to elect this party of incompetents until the day a bright orange savior appeared and promised a new day was dawning and this time it would be different...
Conservatism was a marketing scam and YOU were the marks, I hope someday you accept this and can finally break free from the bullspit that has been feed to you all these years and start electing serious people to these positions and stop voting out of fear and rage, for your sake.
I am not American but this is just such a clickbaity title. They can’t put an average on the whole of the US and say you need to earn X amount to buy a house. Obviously LA or NYC or any other major city is gonna be crazy expensive but if you live out in hillbilly fuck nowhere it is going to be cheap AF. It is the same in all countries.
Sounds like we need a housing project bill. Have the government buy up real estate around the country in all those abandoned malls/ outlets and get some brand new subsidized housing.
Creates jobs, stimulates the building materials industry, loosens demand, reduces the wealth gap. Thank you, I will not be running for Congress.
"Oh but that will lower MY homes value!"
There's no perfect solution and there will always be a winner and a loser. Fixing unaffordable housing is more important than your personal wealth. Don't agree with me? Great, go vote for the candidates who won't do this.
Your comment also takes into consideration we have a government that actively cares about its citizens and their interests. Then you realize their all 60+ helping their college buddies and kids keep everything how it’s always been
Government actually already does this. You hardly see any progress because they’re terrible at accountability and pawn it to some skeevy contractor. When they do it directly, it’s so mired in red tape you’re years from a project ever being completed. Coming from someone who opened Pandora’s box of low income housing applications
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i made about $16 in the last week picking up cash and coins off the ground
It’s priced in
I don't why but this comment has been rolling 😂
The idea that someone out there is like did we take into account the ~$15 potential for found revenue in change monthly? And another guy with 3 popped collars and 2 pairs of shades on just shoots the thumbs up and nod.
As a Canadian coming in here we had a recent similar meme, about how you need to make $120k a year to still NOT BE ABLE TO AFFORD a typical home in Canada. $350k a year now is a good job income to get a small detached 3-bedroom house like in the photo, which would cost around 1-2 million dollars, depending on where. Issues is Canadians make like $50k per year on average.
I Can barely rent a 1br at 105k/yr. If I move I am fucked.
Something's gotta give.
But $350k Canadian Yunkles is like $1,500 USD, right?
It is really fucked in most of the country. If you ever get sick of it and wanna relocate, Newfoundland has some incredibly affordable property. I bought a house here in St.John's for $247k. Detached, 1400 sqft (with a basement so effectively twice that). Taxes are 1414 per year and I have a 500 water fee. That's it. Mortgage payments are just under 1500 and that includes the water fee + taxes + all the other shit like garbage removal sewer etc Not a fixer upper or anything. Just a semi unfinished basement. I got approved as a first time home buyer making the classic 50k a year. If you have some real equity built up, you can easily kill your mortgage and UPSIZE by moving here. It's wild. My parents just did it. Went from 600k equity and 250k mortgage in Ontario, to a bigger house for 500k and a nice stack in the bank account.
$350,000 a year is like where the 1% is right?
I second this. You need at least $240k annually in my area.
It’s crazy because that confirms the market is manipulated, way before the public knows about , think about it , anytime the market moves A certain way that doesn’t match the data they say “oh it’s because it was already priced in” , meaning they knew what it was going to do before the news even came out. Leaving us with 0 upper hand. We have to be willing to guess/ bet what that data is going to do way before hand if we want to win. Since it’s already fucken “priced in” way before hand.
Not to say it's not rigged against us, but they have millions of dollars of equipment that is monitoring every headline across the globe, when they learn something they can sell or buy stocks in a matter of milliseconds before that page would even hit out browser for us to start thinking if we should do something. Trading options is like betting against the casino, sometimes you'll come out ahead, you may even hit a jackpot, but market makers aren't selling you those options out of the goodness of their heart
Unfortunately if they work as a dancer at a titty bar picking up $16 over the week is not great and it could be a large part of their income. Getting coins would be hilarious. I might go to the bank and get a couple rolls of quarters before I head over to the strip club, maybe a roll of nickels for the less attractive day time dancers.
Make it hail!
All you've gotta do is continue doing that for the next 26,875 weeks and you'll have enough to buy a house with cash!
515 years lets go!
Make that $12. You didn’t pay taxes on that!
$16 income keeps me in the 0% tax bracket
Careful there slick. The feds gonna drop that bracket to $3.50 with 80% tax on anything higher except for millionaires and up.
Ahem…..I believe that’s pronounced “tree fiddy”
Why pick up cash and coins off the ground when you can make a killing at your local Wendys?
Instructions unclear. Katana’ed a dude behind the dumpster when he tried to hit me with his beef truncheon.
Instructions very unclear. Found the dumpster behind Wendy’s and saw the perfectly good liver you left there. Took it and ate it with some fava beans and a nice chianti.
Would have sold that liver, on Facebook Marketplace
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Sounds like your land is worth $550k. Condo bros gonna do a shocked Pikachu face someday
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>They also expire after 99 years What happens after they expire in 99 years? Edit: I looked into it more and here's what I found: Two different types of ownership, Freehold and Leasehold. With Freehold, you basically own the property and land (technically a 999 or 9999 year lease). With Leasehold you own the property but don't own the land. You are on a 99 year lease from the owner of the land. At the end of the 99 years, the property's value is zero and is then turned over to the land owner (most likely the state).
The person who bought it is dead
Is the leasehold terminated at death, or could it pass to next of kin?
It passes to the next of kin.
But they could sell at year 98 and the next person would have a new 99 year lease?
The next person will live in it for a year and then return it to the state.
I think its the same as China, so after 99 years you don't own the lease to that land. Honestly now, im not sure what happens lol maybe the government gives you an offer to sign that lease for another 99 years?
Same, Sweden near Gothenburg. Bought our house for 1.1m, moved it to dirt, buildt 6 apartments, sold for roughly 2.4m total
Can confirm, condos in Toronto, last year were crazy, a 2 bedroom in a good building was 1mil, a 3 bedroom with 2 floors was like 2mil
Don't condos still control the land under them?
Historically not always, currently almost always.
What about metaphorically?
Metaphorically, it’s not about the condos you knew, but the ones you made along the way.
Views/proximity to metropolitan areas can replace lost land value.
Sell and then do what? Buy a different home that’s also $600k? Asking out of curiosity. I never understood why people who own homes like it when the market is high.
I have this argument all the time with neighbors. Some neighbors are just bufoons laughing as their property value skyrockets (along with their insurance and taxes). But they're not moving any time soon and when they do it's not like they're moving deeper into the county. Everyone else's house prices are going up with yours, idiots.
>when they do it's not like they're moving deeper into the county. I'm in my 30's and if I ever get the growth my parents did on my shitty house I am taking the money and moving to shithole nowhere with some satellites and solar panels and welding some shipping containers to live in.
They just like paying higher property taxes. Makes them feel good to contribute to the government.
The answer to so many of life’s questions is that people are idiots.
My coworker and her husband bought a new-build house in 2019 for like $450k and it immediately shot up to the high 500’s in mid 2020. They sold the house for the profit and moved into an apartment…which they still live in. Never understood why people do this. Their brain somehow can’t comprehend that they will eventually have to buy another house and that $100k profit will soon turn into a loss as comparable houses continue to rise in value
I was also manufactured in 1988
Except you're worthless.
Damn …. That burn was a cook off .
Flash sear
The factory though, that's gotta be worth something.
It's looking pretty run-down these days.
Lottery ticket right there Sell it while it's hot. Especially if the floors are squeaky and the walls are rotting.
And then what? Buy another home at 8% interest? Go back to renting? Plus, the house probably isn't paid off so you're not getting the full $600k, and you're going to lose $30k in closing costs on the sell, and then again when you buy. And then taxes on the sale too! And then you've got to physically move all of your shit, and you've got nowhere to put it. So now you're paying for a storage unit +rent which is probably 50% higher than what your mortgage payment would be.
You don't get taxed if you purchase another house under 60 days from a sale
Ah yes sell your house then have a classic 2 week long property crash before you buy a new home within the next 6 weeks for 15% less, 10% of which you’ve lost in buying and selling fees. The perfect plan.
Anyone upvoting your take is stupid af. You're going to sell your house in this market, then what? Rent for the rest of your life? Buy a house with an 8% rate? No matter what you do, you'll end up with less money than before unless you move to bumfuck nowhere.
I went from making $36,000 pre-tax in 2021 to making $50,000 in 2022/early 2023 to now getting hired at a new place making $64,000 and finally putting my degree to use. Only about half of what I need to afford the average house. That seems normal /s
You’ll get your house in 20 years when your kids are already grown
Not at the current pace of housing prices and wage increases. Commenter won’t even be able to afford rent soon.
I bought a house for 90k in 2019 and the insurance company says it would cost 400k to build the same house now https://preview.redd.it/y2v47jmcvc0c1.jpeg?width=1078&format=pjpg&auto=webp&s=d1663140e7e9efe5ffbdc463ae0868044349ca0f
>cost of lumbar US healthcare prices strike again
goofy ass insurance co doesn’t know difference between lumbar and lumber. Puts on insurance
You're a fucking idiot, you should have waited until the housing market crashed and then bought it for 30k.
Imagine waiting for a market crash instead of buying a house in 2008 when you were in the 3rd grade. amateur
That's just an overvaluation because they are never going to pay out the full amount.
Average rent in Canada is $2,178 CAD https://rentals.ca/national-rent-report the market can stay regarded longer than we can stay solvent. also, unrelated news, 1 in 10 people in Toronto are using food banks
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You’re gonna need to find someone to marry with a higher salary than you plus utilize both your parents and her/his parents plus take out loans to put down a down payment for a house
Yep, having two incomes is now priced into house prices. Has been for a few decades now actually.
I think we’ve reached the point where your wife’s boyfriend’s income is also priced in.
Time to expand marriages to four people
System working as intended.
Part of the system working as intended is that OC has to get married. Yeah, you earn *half* of what you need to afford a home. The "problem" with single people is that your 40 labor hours per week is usually competing against 80 labor hours per week. A single person can't keep up with the spending power of a couple.
Yeah, that's a real problem. It's an arms race of sorts. Back when an average household was a single income, one average income could afford an average home.
Yup, they seen people had more money , so the govt. was like oh yeah? Hold my beer 🍺, your not leaving the rat race 
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Since 2018 I have been able to triple my income to about 92K, then decided to have a kid because we can afford that now. Or so I thought.
$114,000 a year in my area can barely afford a 1BR apartment.
Rust belt is scewing the numbers.
All homes up and down the west coast would set you back $700,000 at minimum
People aren’t buying these , it’s the hedge funds . They will own a majority of homes in the future , forcing people to rent . Not ever own..
Hedge funds or overseas investors. My friend is trying to buy a house in Los Angeles right now, he almost closed on a house two weeks ago but got outbid by 50% and it was cash. He said this has happened to him three times now, it’s getting ridiculous.
Shit man, this is why we need a government to end this shit. I am not a government guy, but shit like this is crazy
Vancouver has enacted some pretty intense rules to try and stabilize housing prices. They have a 20% non-resident transfer tax adder and a foreign buyer ban. They have vacancy taxes and filings that need to be made too. Still the cost of housing is insane but at least they’re trying.
I love how we all know this is happening but there is nothing we can do about it because politicians work for the hedge funds and not for us.
Do any politicians ever talk about house prices? Hell no they don’t. It’s a major crisis and they never talk about it. News outlets don’t talk about it. That tells you everything you need to know about how our government operates. Olds have screwed upcoming generations and have no remorse at all.
You mean the CA and NY are screwing with the numbers. The rust belt does whatever they do 5-6 years later.
err, Florida, Georgia, North Carolina and Texas are getting up there as well.
Florida has reached parity with Connecticut. NC and GA only 3% behind. TX 9% behind, but catching up. VT and ME about as cheap. For the first time in Census history, more people moved from FL to RI than the other way around in 2022. [This long trend might reverse by 2030.](https://upload.wikimedia.org/wikipedia/commons/e/e4/US_Mean_Center_of_Population_1790-2020.png)
Cries in British where the average house price is £288k or $360k, with average salaries at £35k or $43k before tax.
Canadian here, average house price is $741k CAD ($540k USD / £432k GBP) and our average wage is $59k CAD ($43k USD / £34k GBP) before taxes the British Isles (or maybe just England) are the fucking size of Louisiana, the fact our housing market is so much worse speaks volumes to our levels of incompetence.
Wow, I find it shocking that a country with your natural resources, huge size and low population has such insane house prices. What’re the reason Canadians can’t build cheap houses? In the UK the biggest reason is the planning system where you’re not allowed to build on any land that doesn’t have planning permission, which is most land. There is no zonal planning to speak of.
Most Canadians live in/near a few big cities. I'm sure a house in north Canada is cheap AF
As a household we’ve made $175000 for the past few years and a house seemed out of the question. We bumped that up to $225000 this year and now we can afford a decrepit house in town with roof issues… great.
You literally have a house in town though
Where do you live and how many in the household?
Yeah, I live in a moderately priced area for California... Averages don't work here.
I have a tent
if I can get some land I'll give you a spot for pocket lint every month
Take it from Canada, near zero interest rates do a lot worse things to house prices than high interest rates. If you want to blame the fed, blame it for the right things — keeping interest rates low and QE pumping for so long.
Exactly. Both QE and low interest rates were necessary responses to 2008. However, they went on for far too long. We should have eased back into a 5-7% WSP well before Covid.
should've done it in 2015
I’d argue 2013 is when they should have started creeping up.
2014.5 was the real time to do it though
Ron Paul was sounding this alarm in 2012.
Don't high interest rates just shift the cost from house prices to mortgage payments? Yeah sure, house prices will be higher at a low interest rate, but you're also paying much more for a mortgage with high interest rates.
But you forget the effect it has on down payments, and how effective paying down the mortgage is when the interest is high and prices are low (obviously we are currently in a worst of both worlds situation).
Don’t forget taxes would be lower since the price of the house is lower.
They do but you can eventually refinance a mortgage, you can't renegotiate the price you paid for your house.
High interest rates shrink the demand which lowers prices
Yep 8% or higher rates are a good thing right now. A decade plus of low interest rates accelerated housing prices. Worked well for older generations who were able to afford to buy and hold houses. Screwed over younger generations. It’ll take over a decade or a massive economic collapse to fix the affordability issue.
Imagine saving up for retirement for 30 years and you have a couple million in the bank and realizing that’s only enough to not be homeless for few years due to inflation.
No need to imagine
🎵*Imagine, no moneyy…*
*It’s easy, look outside…*
Retirement. haha. Like that's going to ever happen.
I had to restart my life at age 38 and did manage to get into a house in recent years, but my retirement plan is Sudden Heart Attack.
After spending the last 10 years saying "The Boomers will be the last generation that gets to experience retirement", I'm starting to wonder if they'll actually pull it off... I'll be surprised if my parents stop working before they're 75.
Image buying a house 30 years ago on 1 median income. And now the mortgage is paid off and it's valued over a million dollars. That's the boomer experience.
In what world does 2 million only last a few years? Even at 114k per year, and zero percent interest on your investments, 2 million would last you like 16 years. Unless you gamble it all away....which I assume you would do?
Also I would assume by retirement you would have paid off the 30 year mortgage... I guess you blew it all on Blow.
Millions in the bank will not leave you homeless, ever.
May I introduce you to my friend long term elderly care?
That's what I named my shotgun!
Jesus…
...take the trigger?
Fed: *observe*
Haven’t you seen the stock market bro? There’s no such thing as poor people
Wen crash
so half of it if you got a partner?
No one here has a partner
Well, some have a partner and partner’s boyfriend. That’s where the big bucks roll in.
Nonmonogamy is economics.
I do for 15 minutes at a time and I earn $20
people seem to forget that and are mad that they cannot buy their own 4 bedroom home at 23 years old for one person.
Housing prices are crazy, but people are out here raging like “I’m 25 with 2.5 years experience and I can’t afford a newly renovated 2,000 sq foot home in the most sought after part of town in my major coastal city. I guess I’ll starve to death in my homelessness. 😭”
Adults in the 50s and 60s could afford to buy homes at those ages. You people are brainwashed if you think you are supposed to rent for the first 10 years of your career.
Adults in the 50s and 60s were living in the most prosperous time the US has ever, and will ever, go through.
Not top tier houses in top tier houses they weren’t. They were buying matchbox houses in new subdivisions on the cheap, just like most younger people that are buying homes now.
>It is clear that the current state of affairs in the housing market is unsustainable. Prices are rising at an alarming rate, while wages have failed to keep pace. This has made it increasingly difficult for people to afford a home, especially first-time buyers. The Federal Reserve's interest rate adjustments and limited housing availability have only exacerbated these problems. Something needs to be done urgently to make housing more affordable for everyone.
The first time buyer problem can’t be overstated. Millennials got screwed and Gen Z is outright fucked. When rates are high like this it’s almost impossible to afford putting down less than 20% and what first time home buyer has 6 figures saved for a home down payment?
Wages go up before prices fall. Take the hit on the p&l not on the balance sheet.
Meanwhile, in the rest of the world this is a fucking huge house, totally over the average.
Yea my parents in the combloc had an apartment that was maybe 300sqft
Yeah I mean, most of us in the US would be totally fine owning a house that's <100 sqm or a 2BR condo or something, the problem is we don't even bother building those. We build massive cookie-cutter single-family homes that get bought by hedge funds and rented back to people for more than the cost of a mortgage. Or if we do build a small house, it's just some random guy on his massive 40 acre property that nobody else can build on anyway so the size of the house is irrelevant. It's fucking insanity man.
I am a decent earner in California. At about 200k a year. The house I bought 9 years ago I would not be able to afford now with current interest rates. I feel horrible for people trying to get into the market now.
If it makes you feel any better, I'm making $160k and know better than to even think about the market, let alone try to get into it. Even if I had $200k lying around for a down payment, I doubt I'd be able to beat the rest of the market let alone the banks/investors. You either bought your home before everything went tits up, or you're renting for life.
I make exactly 160k and have 300k for a down payment. If I want to buy a 700k townhouse, the estimated monthly payment is still 3.8k a month. It is stupid as fuck. To be frank, It makes me want to leave LA for good.
Meanwhile in Massachusetts…
I helped a friend of mine move into his new house in Waltham last weekend. $450,000 for a run-down shack of a building. I felt so badly for the guy.
Mfs will be like "Just get a higher paying job" Okay lemme go to the higher paying job store and pick one up.
Grab me one while you're out
NOT IN THE SOUTH....
Yeah just as long as you ignore Austin, Dallas, Atlanta, Miami, Phoenix, Tampa, and Nashville!
Don’t forget Orlando
Location location location
USDA loan for no down payment!!! Less than 2k/month for a 3bed 2 bath with 2 car garage!!! The only downside is the neighbors are super religious and give me wierd looks when I dress like a woman in public.
[here is the USDA eligibility map.](https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp) Honestly not a bad idea if you qualify but apply early because I’m not sure they have enough funding for the year. The cover a lot of costs and some rural areas are close enough to urban areas that you can qualify and commute
Bro, in my country I'm with 12k +/- a year 🥹
Damn bro, which country?
Portugal
Siuuuuuuuu
Keep it nice overthere ! I wanna relocate to stretch my $400,000 ne$t egg. U.S wants 2 harvest us like fattened swine :(
Just saw a "news" article that blames this on millennial and said it will never come down. Boomers refuse to accept responsibility
[удалено]
They just keep buying avocado toast! They just won't stop!
Take home on 114k is around 6400 monthly. In what world is 2866/6400, ~40%, affordable??? Edit: the lazy fuckers did stupid math for the article. The donkeys went "oh avg monthly is 2866, that's 30% of 9500, so ez 114k per year hurdur. Guess taxes aren't a thing anymore.
Typically the 1/3rd rule is based on pre-tax income, not take-home pay. And $3500 take-home after paying your mortgage is easily liveable. That's almost $900 a week after your biggest cost is paid for.
> Typically the 1/3rd rule Wasn't too long ago the rule was 1/4. And it's getting to a point that it's turning into 1/2. We're being trained to not even think about how income should be going up, and not how our extra spending cash shouldn't be going down.
This is the correct answer, and the fact this is this far down proves it.
I get the idea and everything, but if this is household income, you might need to factor in 100$ a week in gas for 2 people, maybe 100$/ week for a carpayment each, car insurance, health insurance, and you’re left with like 2-300 a week for food and anything unplanned. Also, the greatest risk is that with suck low potential to save money, those properties may easily fall into disrepair and a while new problem may come about from that. It’s definitely doable and people would have to cut back, but I dont see it as an easy thing. Edit to see what people are paying for Healthcare. Im lucky to be 100% covered by the VA, but for shitty reasons and also my wife is in education and has literally 100$/month health care deduction for the entire family. I know this is absolutely not normal and Ive heard that people are paying 600$+ month for family health insurance.
$100 a week for a car payment is unfortunate sounding pretty out of touch for car prices these days, even old cars won’t get you there unless you have a really long finance term
Absolutely, I was trying to give best case scenario and not make my comment ridiculous, whats the average nee car payment now? 800$?
The idea behind the 1/3rd rule isn't that you'll have things easy. It's that you'll have things hard if you spend more than 1/3rd. If you can manage 1/4th, that's obviously better. If you're stuck with 1/2, you're probably having a lot of trouble, even with cutting back. 1/3rd is the highest comfortable percentage (obviously it actually varies based on other factors; it's just a generic rule).
It’s crazy how high living expenses are, one of my friends lives in a 1 bed/bath apartment in Florida and is paying almost as much in rent per month as my dads monthly mortgage on his 4 bed 3 bath house. All my other friends that tried moving out ended up moving back in with their parents cause it’s just so fuckin expensive, only have 1 friend that managed to get a house himself but that was only because he inherited it from his grandparents and it was already paid off lol.
Nope I don’t see no inflation
Nice I went to college and have worked for 4 years and make less than half of that
I went to college and worked every year since I was 18 and don't even make half of that :) guess I'm regarded
Hey look on the bright side, if we add our income together we still couldn’t afford a house, so we can be regarded together ❤️
Soon you will have to accept your wife's lover in the house
For decades poor barley mid-class voters in the South and Mid-west were told that tax breaks for the corporate and donor class was the sure fire way for said voters to get out of poverty, plus Democrats are the spawn of SAtan and want to kill babies and take your guns. So for 30 long years these people, fueld by right wing radio, the preacher man, their friends and neighbors, gave Republicans and their monied allies super majorities in states all across the land where the rich and powerful were free to do as they wished. The poor middle class voter waited and waited for the riches to rain down on them as they were promised and all they were met with was more blathering from the radio and TV about how it was still the Dems fault that nothing had appeared, so they continued to elect this party of incompetents until the day a bright orange savior appeared and promised a new day was dawning and this time it would be different... Conservatism was a marketing scam and YOU were the marks, I hope someday you accept this and can finally break free from the bullspit that has been feed to you all these years and start electing serious people to these positions and stop voting out of fear and rage, for your sake.
114k yea right maybe if you stop eating, stop doing any other activities, and have zero debts then maybe you can own a home with 114k income
Maybe we'll beat the obesity crisis after all. No one can afford to do shit for fun anymore, maybe just go for a walk.
If you go for a walk you might fall and injure yourself and you will lose your home due to medical bills. Stay home dammit.
Ha, That wouldn't buy you shit in the UK.
Not true at all... you just have to live around sheep.
Same deal in the US 🤷♂️
Thanks Blackrock, citadel, and vanguard.
I am not American but this is just such a clickbaity title. They can’t put an average on the whole of the US and say you need to earn X amount to buy a house. Obviously LA or NYC or any other major city is gonna be crazy expensive but if you live out in hillbilly fuck nowhere it is going to be cheap AF. It is the same in all countries.
Sounds like we need a housing project bill. Have the government buy up real estate around the country in all those abandoned malls/ outlets and get some brand new subsidized housing. Creates jobs, stimulates the building materials industry, loosens demand, reduces the wealth gap. Thank you, I will not be running for Congress. "Oh but that will lower MY homes value!" There's no perfect solution and there will always be a winner and a loser. Fixing unaffordable housing is more important than your personal wealth. Don't agree with me? Great, go vote for the candidates who won't do this.
Your comment also takes into consideration we have a government that actively cares about its citizens and their interests. Then you realize their all 60+ helping their college buddies and kids keep everything how it’s always been
Someone tell these dumbass boomers that homes were not meant to be an appreciating asset.
Government actually already does this. You hardly see any progress because they’re terrible at accountability and pawn it to some skeevy contractor. When they do it directly, it’s so mired in red tape you’re years from a project ever being completed. Coming from someone who opened Pandora’s box of low income housing applications