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State of housing costs in the US. Where does it end?

Covidiocy screwed up lumber prices and everything else.

The Great Recession caused a good number of tradesmen to get out of it because the .gov screwed up the real estate/building market back then.

But by all means, let's have them enact more laws to "help" the situation.
 
I was talking with someone about this the other day. I stated looking for a place a few years before Covid. I was picky as I had a good paying job and wanted a place for my tools/junk vehicles, aka a multicar garage/shop. I was renting for a fair price and both saving money and building a truck....since then Ive changed the rental situation. Meat and Potatoes of the paragraph: If general housing has gone up 40% over the last four years, food/utilities, etc up 40% (example).....and my salary has gone up 4%......that leaves a whole lot larger for a down payment needed for the 10% and a whole lot less free cash to make up that larger down payment. Now mind you, I could have chosen to not build more trucks, save more and buy a house, but internally the value of the local houses (which I cant afford ANY) isnt worth it to me. I just dont want to go house poor on a house that isnt even close to worth it. Local prices are now $430k-$500k for 1000sq ft boxes with no garage or yard. When you leave town and go into the "country".....those houses have jumped almost more n price simply due to them having amenities and land, neglecting the commute into the "city". Rant over :grinpimp:
 
JD Mark said:
Covidiocy screwed up lumber prices and everything else.

The Great Recession caused a good number of tradesmen to get out of it because the .gov screwed up the real estate/building market back then.

But by all means, let's have them enact more laws to "help" the situation.
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My dad is a contractor and I help him out when I have time. I'm 42 and I'm usually the youngest person on job sites by at least a decade. It's pretty crazy. Like who the fuck is gonna be doing all this stuff in another decade?
 
Sandy Johnson said:
Home construction hasn't kept pace with population growth.

Population keeps going up, while during the last big housing market crash, construction dropped off. I don't think we ever recovered from that.

I don't see a government solution to that.
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The government solution would be for the government to stop fucking it up. In many metro areas, you can’t build a new 1250 square foot house. It has to be bigger so they can tax it more. And of course government has caused massive inflation.

Government could also ban foreign investments in single family homes.
 
Mr.Ratbastard said:
It may have been mentioned already but the .gov response to covid also fucked everything up. When the cost to build almost tripled we were fucked. There is zero chance builders would ever let the price per sq ft drop anywhere near previous levels after seeing what people were willing to pay. Of course the banks had to play along too.
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The fed is the one that fucked prices with having dirt cheap interest rates for so long. Allowed people to borrow money for cheaper which drove up prices.
 
Mr.Ratbastard said:
It may have been mentioned already but the .gov response to covid also fucked everything up. When the cost to build almost tripled we were fucked. There is zero chance builders would ever let the price per sq ft drop anywhere near previous levels after seeing what people were willing to pay. Of course the banks had to play along too.
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blaming the wrong dudes there

someone was at the front of it, little hint, they were running the people running the printers
 
Mr.Ratbastard said:
It may have been mentioned already but the .gov response to covid also fucked everything up. When the cost to build almost tripled we were fucked. There is zero chance builders would ever let the price per sq ft drop anywhere near previous levels after seeing what people were willing to pay. Of course the banks had to play along too.
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This is actually starting to correct some now, at least on the construction side. It's not just the GCs, subs have been riding that COVID pricing wave and keeping things much higher than needed as well and GCs are finally starting to be a bit more hard assed about it than they were. Whether that pricing difference makes it way to customers is another story though, time will tell.
 
[486] said:
that doesn't help when you look at your tax bill
if anything it makes it worse when you look at your tax bill
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Why would I care about my tax bill more than net income :confused:

Sure, I want to pay less tax. What I want more is to have a high income and net worth. The tax is just a cost of making $ that you try to reduce to increase your net.
 
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Clemson13 said:
Why would I care about my tax bill over my net income :confused:

Sure, I want to pay less tax. What I want more is to have a high income and net worth. The tax is just a cost of making $ that you try to reduce to increase your net.
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Income tax is just one of many kinds of taxes.
 
Clemson13 said:
Why would I care about my tax bill more than net income :confused:

Sure, I want to pay less tax. What I want more is to have a high income and net worth. The tax is just a cost of making $ that you try to reduce to increase your net.
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Whaaat? Why wouldn’t you care about taxes? So you think you are happy paying an increase in ownership taxes every year and income tax on your revenue from renting your places out?

What’s your turnover rate on renters like as you raise rates to pass your ownership tax burden onto your renters?
 
east_beast said:
My dad is a contractor and I help him out when I have time. I'm 42 and I'm usually the youngest person on job sites by at least a decade. It's pretty crazy. Like who the fuck is gonna be doing all this stuff in another decade?
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Interesting, on the comercial side of things in california I am now semi regularly the oldest on the job and am only 40.
 
2big bronco said:
Interesting, on the comercial side of things in california I am now semi regularly the oldest on the job and am only 40.
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36 and dealing with the same thing in a lot of things in life. It's weird lol

My company is about the only exception. Somehow everyone that works for us is 55+ other than a handful of carpenters that work for our subs.
 
2big bronco said:
Interesting, on the comercial side of things in california I am now semi regularly the oldest on the job and am only 40.
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That's encouraging. Here in western NC there's gonna be a complete void her in the next decade or so if something doesn't change. I really don't wanna do it, but seeing what I'm seeing it kinda has me considering getting my contractor's license and just rolling with it when my dad retires. He has a great reputation but has really dialed back in recent years just cherry picking the jobs he wants. He probably says thanks but no thanks to three or four jobs for every one he takes. I could run a relatively small crew and make a killing. It's tempting.
 
Clemson13 said:
Why would I care about my tax bill more than net income :confused:

Sure, I want to pay less tax. What I want more is to have a high income and net worth. The tax is just a cost of making $ that you try to reduce to increase your net.
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Huh?????

When earning money and creating wealth, low income tax is more important than low property tax.

When retired or living off of savings, high income tax is fine… low property tax is critical. Otherwise property tax increases put people out of their homes.


I find property taxes the most immoral of all taxes…
 
Gatorgrizz27 said:
Florida has passed a law preventing China and certain other countries from purchasing land here. Their check is a notarized form, I’m not sure what would happen if someone that was a citizen here purchased it in their name with cash from their uncle back home, and funneled him all the rental income.

The really scary thing about BlackRock, etc gobbling up these single family homes is when the next depression actually hits they can come out and say “We love America, and right not Americans are hurting. To give back in support of our communities we are dropping rental rates by 50% for the next 12 months.”

What happens to grandma Susie who owns three rental properties (kept her old house each time they moved), and has only raised the rent 10% over the past 7 years? Her houses sit vacant and eventually she sells them to BlackRock also, as the taxes and insurance eat her alive.

“You will own nothing and be happy.” There is an ulterior motive, as actual real estate investors and developers all want to own multi-family units. BlackRock could just go build their own, but instead they are buying single family homes in neighborhoods…
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No they are not. That's internet folklore.

Does Blackrock Buy Houses?​

If you were to believe everything that you see on social media you would think Blackrock has bought all of the houses in the US. Or at least most of the houses that have sold in the last few years. The truth is that Blackrock has not bought one house. They do not buy houses but there is a similar fund that does buy houses by the name of Blackstone. These are not the same funds nor are they controlled by the same people. While many people feel funds like Blackstone are buying all the houses that is not true either. So what is true?

What is the difference between Blackrock and Blackstone?​

Blackrock is the largest asset management fund in the world with over 9 trillion dollars under management. Blackrock has had ties to the US government and has enormous power and wealth. Many people assume Blackrock is who buys houses because their name is so close to Blackstone.

Blackstone is a private equity firm that has 880 billion under management. Blackstone owns companies that buy and rent houses in the United States and other countries as well. They also own companies that buy and rent apartment buildings and commercial real estate as well. Blackstone also directly owns real estate.
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Well no shit they don't own directly. Almost no large corp directly owns their assets. All that shit gets put under a broad range of subsidiaries, holding companies, etc. It's all diversified for various reasons, some financial, some anti-trust, etc.
 
Motorcharge said:
Well no shit they don't own directly. Almost no large corp directly owns their assets. All that shit gets put under a broad range of subsidiaries, holding companies, etc. It's all diversified for various reasons, some financial, some anti-trust, etc.
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Come on now, you don't really believe that now do you? Intel, Ford, Boeing all have subsidiaries, for branding or other reasons, or like you said anti-trust, or financial/taxes, but make no mistake those companies do own those assets, it's included in their financials and valuation. Now MGM resorts after getting over extended during the building of City Center during the financial crisis, has divested ownership of most if not all of their properties but stay on as operators, and charge the property owners for their management services.

People keep saying Blackrock is buying houses, and that is simply not true. Blackstone is. I get it, people want to have a boogeyman and Blackrock is one of them.

But believe what you want.
 
Roc Doc said:
Come on now, you don't really believe that now do you? Intel, Ford, Boeing all have subsidiaries, for branding or other reasons, or like you said anti-trust, or financial/taxes, but make no mistake those companies do own those assets, it's included in their financials and valuation. Now MGM resorts after getting over extended during the building of City Center during the financial crisis, has divested ownership of most if not all of their properties but stay on as operators, and charge the property owners for their management services.

People keep saying Blackrock is buying houses, and that is simply not true. Blackstone is. I get it, people want to have a boogeyman and Blackrock is one of them.

But believe what you want.
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You disagreed then rephrased what I wrote missing the point. :laughing:

Don't get so hung up on the details. No one means Blackrock directly owns all these houses, just that they're ultimately in control of them. Just like all these corporations they now own controlling shares of, yeah they don't own them on paper but they certainly own them in practice.

For that matter people generally don't mean Blackrock specifically when discussing this stuff. It's just become the catch all term for all these big investment groups like Vanguard, State Street, etc.
 
grumpy356 said:
Rates are under, not over.

I don’t see the effect on real estate.

HGTV and “house flipping” shows are WAY, WAY more responsible for this particular problem than immigration of any sort.

Edit; and AM talk radio guys who are getting rich selling books & seminars.
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My sister has been looking for a house going on over two years now. Rinse and repeat what’s been said about people coming in and bidding on it 20-30% more than asking price paying cash and no inspections. She can’t compete with it.

She blames the flippers on this and i explained why that’s not possible in reality. They cannot buy a house 20~30% above market value, invest another $30~$60k in it then turn around and put it on the market adding profit on top of that. This is not a flipper market unless it’s in some street gang drug infested city hoods.

She finally bought a house and closed on it July 27. She actually bought it under value as it needs a lot of major interior remodeling work, new HVAC and a deck. The seller had to install a new roof on it tho.

The sellers realtor fucked that sale up due to listing it wrong on sq ft of the house (added an unfinished basement and that’s not allowed unless it was finished with rooms and that) also didn’t list the home to be sold as is where is.

I think that while inflation is way out of hand, the whole market is about to soften up if not crash. A lot of things are slowing down and with crazy cost of things, it’s a recipe for disaster imo.
 
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Clemson13 said:
Why would I care about my tax bill more than net income :confused:

Sure, I want to pay less tax. What I want more is to have a high income and net worth. The tax is just a cost of making $ that you try to reduce to increase your net.
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no

your taxes are the money you pay to have someone continuously threaten to kill you for doing anything you want to do in your own time on your own land with your own property
so of course I care more about being shanghai'd into funding that shit than I do making extra money I don't particularly need
 
[486] said:
no

your taxes are the money you pay to have someone continuously threaten to kill you for doing anything you want to do in your own time on your own land with your own property
so of course I care more about being shanghai'd into funding that shit than I do making extra money I don't particularly need
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I posted mine up. My MAIN portion is so kids can be educated in a mall atmosphere and so under 1/2 can play a game on a pro level field for their last 3 years of highs. And we can have an athletic director that can drive something nicer than me.
 
grumpy356 said:
I posted mine up. My MAIN portion is so kids can be educated in a mall atmosphere and so under 1/2 can play a game on a pro level field for their last 3 years of highs. And we can have an athletic director that can drive something nicer than me.
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that just sounds like an indoctrination camp
in order to justify the rest of it in a new generation of future astronauts
 
grumpy356 said:
I posted mine up. My MAIN portion is so kids can be educated in a mall atmosphere and so under 1/2 can play a game on a pro level field for their last 3 years of highs. And we can have an athletic director that can drive something nicer than me.
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A very small portion of mine actually goes to maintaining the local park and VFW Hall: Nice bathrooms, grass, tennis courts, playground. baseball field. I'm alright with that.

Another larger portion goes to my kid's school just down the street. It doesn't suck. If no taxes existed, I would most likely opt to give money to both of those organizations anyway.
 
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