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

Bought my first house in 2017. I kinda regret not going straight to the top of the price range the bank approved me for, especially when rates were so low. But, I wanted to live cheaply, and didn't really anticipate prices doubling in 7 years. Basically what I'm saying is I should have bought the forever house back when it was half the price and I could actually afford it.
 
Motorcharge said:
Inflation and investment groups buying anything they can get their hands on are the primary causes. Lack of construction and foreign nationals buying properties are probably the largest secondary causes. Illegals definitely contribute to all sorts of economic problems, including housing shortages by they're not exactly the ones buying up properties.
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They still affect demand though.

A lot of those houses the idiots around here get a boner over slumlording out for the rental income would otherwise be younger people's first homes if there were tens of millions less people in this country.
 
I wished I'd taken out a loan and bought another house 12-15 years ago just for investment. Especially the 50-70k ones. One behind my shop last sold in 08 for 28k being nothing but a square 900 sf 1 br/ 1 bath. Then sold 4 months ago for 179k.:homer: Does come with 3 acres and totally surrounded by National Forest except my side that's got a big hill to block the view.

I still think the buyers screwed up. 4 months and they haven't done anything but mow. But they "bought" in. Place sold in a matter of days too. I would have offered 80k but that would have been laughed at.
 
billdacat said:
This is fucking crazy.... I live in Souther Utah; ~3000 sq/ft rancher with a market value north of 2mil. Sister lives in SoCal... 1400sq/ft rancher....1.5 mil. No way whould I ever pay nort of 1 mil for a 1400sq/ft trac home..... :eek::eek::eek::eek:
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People need to leave those areas if they don't want to pay those prices. The prices will then eventually drop. Supply and demand.
 
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Another side to the investment groups buying everything up...our mortgage payment(fixed interest) is now more than doubled since we bought around 5 years ago. We did one large claim after a hurricaine a few years ago. That is our only insurance claim on anything in over a decade, before that only a couple minor accidents over 25 years or so.
My theory is the investment groups also own insurance companies and they are pricing people out. That may be wrong but there is nothing to stop them from continuing to increase mine.
I am getting our house ready to list(shooting for mid september) we just bought a small travel trailer that we will live in. We are headed towards the mountains where hopefully I will build something myself to live in unattached to a mortgage. That's the goal.
 
FleshEater said:
I hired a 22 year old kid for a supervisor role almost 2 years ago. He’s now 24. We convinced him to pull the trigger on a home. He was already looking, but was flip flopping back and forth. Kid makes $36 an hour, is single, and bought a house for $136,000 about 4 months ago. He has been remodeling it and doing all the work himself. When he’s done it will be worth $250k easily.

Too many people want turn key homes now. It’s time to get dirty and buy a fixer upper, but quit watching DIY Network and get on a realistic budget.

Also, move out of California…obviously.
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Nah he's fine right where's he's at. The rest of the US sucks, it's flat cold and cloudy all the time.
 
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It's anxiety inducing to really think about what a precarious spot we're in. Housing is completely unaffordable for first time buyers. The border crisis is a nightmare. The national debt is quickly becoming crippling to the point that you can't just money print your way out of it. Multiple potential jump off points for WW3 with the wars we're funding in Ukraine and Israel, not to mention all the saber rattling with China and the always wildcard North Korea. Neoliberalism was a complete and utter failure but we still have the pedal to the metal.
 
DannyK said:
People need to leave those areas if they don't want to pay those prices. The prices will then eventually drop. Supply and demand.
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You say that as if we have an actual free market and those are the only two, or even the main two factors driving pricing.

Mr.Ratbastard said:
Another side to the investment groups buying everything up...our mortgage payment(fixed interest) is now more than doubled since we bought around 5 years ago. We did one large claim after a hurricaine a few years ago. That is our only insurance claim on anything in over a decade, before that only a couple minor accidents over 25 years or so.
My theory is the investment groups also own insurance companies and they are pricing people out. That may be wrong but there is nothing to stop them from continuing to increase mine.
I am getting our house ready to list(shooting for mid september) we just bought a small travel trailer that we will live in. We are headed towards the mountains where hopefully I will build something myself to live in unattached to a mortgage. That's the goal.
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They have their fingers in and everything. They have a level of control and means to extract wealth without providing anything in return that the "robber barrons" of the 19th century could never have dreamed of. We're not talking just economics either, but political control that's moving closer and closer to global control.

In the grand scheme of things, it's nothing new at a base level. The banks and financial interests have always been the real source of power in the world. They've just found a way to do it that's allowed them to centralize power and wealth while flying under the radar. It's not Obama that's running the Biden admin, he's just the same puppet as he's always been. It's these people that really control everything because they control everyone's money and the banks.
 
arse_sidewards said:
You reap what you vote for.


You can't net $250k selling drugs that fast and not attract fed attention. Legal avenues of obtaining that kind of cash mostly exclude young people. The obvious answer is that it's a dishonest 250k and that the kid somehow wound up with it through parental subsidy or whatever. Toyota profile pic and location in CA would seem to also point in this direction.

Ain't no different than all the other liars here who talk about how great their kids are doing as though their self made when in fact they gave them so much shit the kid is set at 20 the way most people aren't set until 30.

Edit: Or maybe he's got a successful onlyfans hoe of a daughter. :laughing:
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Fairly easy to make 100k as an ambitious 18 year old in california
 
east_beast said:
It's anxiety inducing to really think about what a precarious spot we're in. Housing is completely unaffordable for first time buyers. The border crisis is a nightmare. The national debt is quickly becoming crippling to the point that you can't just money print your way out of it. Multiple potential jump off points for WW3 with the wars we're funding in Ukraine and Israel, not to mention all the saber rattling with China and the always wildcard North Korea. Neoliberalism was a complete and utter failure but we still have the pedal to the metal.
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On the flip side of that, people are more aware of it than ever. The institutions that allow all this are starting to crumble and thanks to the internet and how connected society has become, it's harder and harder for these people to work behind the scenes. Their conventional propaganda through mainstream media no longer works. It may not feel like it, but the tides are also turning in the right direction. Part of the reason we've seen such acceleration of these destabilizing forces, wars, etc is because these people are desperate because they're losing control.
 
arse_sidewards said:
You cannot get a "normal not ass-rape" loan product on a home that the lenders don't consider to be turnkey. Shit that isn't turnkey isn't actually cheaper because between the fixes, the debt-rape and the refi costs you wind up paying the same money over a several year period and doing more work.

Edit: and by turnkey I mean whatever the lender considers turnkey, functional hvac, not broken windows, basic habitability, etc. not whatever some out of touch shitbird in a retirement community who won't consider anything that doesn't have granite counters and stainless appliances considers turnkey.
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Around here the average lenders don't know or look at the condition of the home besides maybe the appraisal report. Turnkey has nothing to do with it.
 
Stingray said:
So some how my 24 year old kid has beat the odds, he graduated high school didn't go to collage, got a great job and somehow managed to save 250K and buy a house in Southern Ca. in 19 days him and his fiancée will be married and moving in, All of that gives me the cold sweats,
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Congrats all the way around man.

IMHO, Immigration does have a problem with supply, but that's an external artificial demand. The local religious monopoly in my area is importing "asylum seekers" and making them pay $1600 for THEIR 2BD apts. they already have $15/h jobs lined up for them through THEIR friends, AND they get paid a monthly salary from the .gov for a year or so, It goes up with the more kids you bring in. It's crazy to me. We don't have as many skilled labor jobs in the States anymore, and that's one of the biggest driving factors in the wage deflation. Lack of Middle class jobs. If you get a USEFUL degree and use it, if You start your own business in the trades, or If you can carve out a Nitch market, you will be at least middle class.

Private equity has written the laws to not apply to them. They are a monopoly, just not on paper, and taxed as such. And Big .Gov isn't helping either, they collect their pound of flesh from you to keep spending it on others.

The big problem I see, in construction, is the lack of starter homes. Alot of freinds of mine bought houses out of highschool for $100k. Those houses aren't coming back with new codes, restritictions, and building costs. The median house in my area is $350k. With new building code requirements, zoning being worse, and Material costs being at an all time high. I don't see it easing quickly. Also, the big builders learned through 2008 to only build the houses you sell. Befor the Recession, they just built everything they could until they ran out of money and people stopped buying.

I'm convinced that AI will be the death of human interaction. The emails will write themselves, Jobs will do themselves, and more middle class jobs will be cut. Helping to divide the Upper/Lower class. If you make it in before AI, You'll be fine.

/rant. sorry.
 
Motorcharge said:
On the flip side of that, people are more aware of it than ever. The institutions that allow all this are starting to crumble and thanks to the internet and how connected society has become, it's harder and harder for these people to work behind the scenes. Their conventional propaganda through mainstream media no longer works. It may not feel like it, but the tides are also turning in the right direction. Part of the reason we've seen such acceleration of these destabilizing forces, wars, etc is because these people are desperate because they're losing control.
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I hope so. The establishment is fighting for all they're worth.
 
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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I agree with all of that and want to add Air BNB/VRBO investors making short term rentals out of residential properties. Some places it’s a huge problem, Tahoe, all of Florida etc.
 
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[486] said:
who is the manufacturing powerhouse now?
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[486] said:
USA's gonna go the way of britain
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In our lifetime? Are we already there?
 
[486] said:
who is the manufacturing powerhouse now?

USA's gonna go the way of britain
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I'll do the maths later, unless someone chimes in, but I "think" we still manufacture/value add less here than in china.

Yes it is. Going back to the old money.
 
[486] said:
who is the manufacturing powerhouse now?

USA's gonna go the way of britain
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We are when it comes to weaponry, but it's irrelevant because after WWII we started stockpiling all the shit needed for war. There won't be a some miracle manufacturing boom if another world war broke out because all that equipment already exists. We're already making all that war manufacturing money because we're the ones already supplying the equipment for all these wars other countries are engaged in.
 
JR4X said:
I agree with all of that and want to add short Air BNB/VRBO investors making short term rentals out of residential properties. Some places it’s a huge problem, Tahoe, all of Florida etc.
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Yes. Any place that is attractive for a vacation is getting snagged up for rentals by small private groups. It squeezes the locals out of the market.
 
Motorcharge said:
We are when it comes to weaponry, but it's irrelevant because after WWII we started stockpiling all the shit needed for war. There won't be a some miracle manufacturing boom if another world war broke out because all that equipment already exists. We're already making all that war manufacturing money because we're the ones already supplying the equipment for all these wars other countries are engaged in.
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It definitely won't be another "Rosie the Riveter" type scenario.
 
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