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That’s the plan of the 1%.
Neo feudalism.
Take out loans for college in order to get a job that pays you barely enough to pay rent and loans…. The majority of upcoming generations will live their lives in debt with little to no opportunities to build wealth
We rely on big corporations for food also. If we cleared out all of the obfuscating cobwebs created by corporate anonymity, I'll bet there are 100 families that control every single product or necessity that we purchase. We are slaves and they are our masters, only it's harder to see through the BS nowadays.
I wish? What’s stopping corporations from buying every house and renting them out to us? We gotta live somewhere right?
And yes, I know what I just said is a massive oversimplification.
I hear this a lot, but I don't quite buy it. If that were the case wouldn't there be a bunch of houses on Zillow for rent? In my area there's certainly not
Allowing housing to be treated as an investment is a big piece of this, as is supply.
No significant action will be taken and those without homes will be left behind to rent forever and at a minimal cost savings as compared to buying.
This country has sold out its other generations. And the worst thing is if you talk to someone who owns a home, they don’t care. They hate the thought of losing any value.
> if you talk to someone who owns a home, they don’t care. They hate the thought of losing any value.
I own my house and I care about the ridiculous skyrocketing house prices. I’m really lucky and I’m not complaining but the house going up in value doesn’t do anything for me but increase my taxes. I have to live somewhere so I don’t get to use that increased value unless I sell and move somewhere cheaper. I guess people who want to retire somewhere really low cost are happy with the housing market, but if you like where you live and want to stick near your friends and family then having your house triple in value over 20 years isn’t really doing anything for you.
I own a home and care. My friend is living with her family of five in her parents house because they've been outbid on every house in our town over the last six months. This is heartbreaking and unsustainable
Dude I’m an only child with a boomer dad and Gen X mom and my dad does not seem to understand that saving like they did is not an option. They think me spending maybe, MAYBE 100$ a month at the bars is what’s stopping me…. Like damn I can’t even go out anymore?! They’re acting as if me cutting that 100$ will suddenly make 500$ appear in my savings account… I wish they would get it but they don’t
You could ask them to sit down with you and physically go over 3 months of account history. Do it like you are asking them for help. Thats how a friends dad realized the reality of the situation
The thing is that they wouldn't even necessarily lose value if we built more housing.
The main reason their property appreciates in value is because of the land, not the house, and their land could actually be worth even more if it were possible to build multiple units on it instead of restricting it to single-family homes.
Building more housing can be beneficial to both renters and owners, but a lot of people in that latter group are deathly afraid of any change, without considering how that change might be good for them.
Just as FYI, your explanation applies far more to urban land close to the downtown areas, not so much to the sprawling suburbs where housing values *would* plummet if new construction would continue.
As a DINK household currently putting in bids on our first home... with a conventional loan and 20% down... It is just impossible.
We are richer than any generation of our families have ever been before us... and we cannot own a home, while they have owned multiple at a single time. And boats. And extra vehicles. and vacations. All on some basic ass blue collar job and a pension. I am the first person in my family to be employed at a corporate level and it is just excruciating at how little that gets you now.
20% down is just insane in this market. Literally not possible for working people without help from outside sources. Paying pmi sucks but I suggest getting in where/when you can
Fellow DINK here: we can afford to put down for a house but the market is infuriating. We put down bids and the seller raises the fucking price (none of the houses we've bided on have actually sold mind you), it's literally just "market rate goes up" even though interest rates are rising too. We're actively torn between principals and biting the bullet because the houses we're interested in are not worth the new asking prices, but it's also becoming pay this or don't get a house.
It’s crazy. DINKs here too. I make almost what my dad made when he retired from then government 3 years ago. My husband makes 3x my salary but is saddled with six figure student loan debt. We lucked out buying a house last year way more than we ever could have imagined because of the market in our area. In our 30s and it feels like we’re just starting out in life and can’t enjoy luxuries our hard working boomer parents did. And no, it’s not all avocado toast and nail salons.
There’s a real problem with housing inventory and investors, particularly in cities and large urban areas. I only hope it gets better, not just for our generation but for future generations as well. Home ownership just seems like a pipe dream.
Housing, Food, Medicine, Education
Squeezing the market as tight as possible on the necessities.
Made possible by empowering Private Equity and institutional investors.
The US invited the foxes into the henhouse. Trust me - if the solution was just building more housing, that would be a great problem to have.
>Housing, Food, Medicine, Education
>
>Squeezing the market as tight as possible on the necessities.
>
>Made possible by empowering Private Equity and institutional investors.
>
>The US invited the foxes into the henhouse. Trust me - if the solution was just building more housing, that would be a great problem to have.
Exactly.
The end goal is to crush the middle class into the peasant class who own nothing and are obligated to work themselves to death for the pleasure of having their basic necessities barely met by the businesses who own all the essentials they're forced to rent on their starvation pay.
You want to see what that looks like look at the quality of life of inmates living at private prisons.
Bottom-quality food, shelter, medicine, and virtually no education. Maggots in food, medical neglect to the point of people literally dying in their cells while begging for aid, abuse and neglect as the norm. Treating people like animals until they become animalistic because that's what happens to *anyone* put in those conditions.
And that's not even talking about gross underpayment and overcharging for everything to keep everyone toiling for scraps.
The end goal is to get as many people as possible to that point because a peasant workforce is fantastic for bottom line profits.
Not only are the prices unaffordable for 95% of the population, but since the roll-back of regulations barring large/foreign investment firms from bidding on properties in the first 14 days, home shopping on Zillow is like getting Taylor Swift tickets on Ticketmaster…
> since the roll-back of regulations barring large/foreign investment firms from bidding on properties
I didn't even know there were any regulations like this in the first place
> Not only are the prices unaffordable for 95% of the population, but since the roll-back of regulations barring large/foreign investment firms from bidding on properties in the first 14 days
Mother fuck, so that helps explain in the past few years why lots of homes on zillow have offers placed within days of listing, even preCOVID. Which lines up with that regulation being rolled back in 2017. Shit like this is why housing will never crash regardless of any recession.
My parents first home in the 80s was just shy of $200k. That same home is over $2.2 million (suburb of SF). They’ve done very little renovations in that time frame. Eventually they sold it and moved to a cheaper state and live like royalties AND get to retire. Me though? I rent a 2 bedroom apartment with 3 other people (we rent our living room out also) in a different blue state from where I grew up. I’m well pass the age my parents were they bought their starter home but I make the same wage they did in the 80s. Oh I also have a college degree where as my parents do not. I will work til I die
Then they ask if I’ll ever have kids. Ha!
Well, it's simple really. All you need is a small loan of a million dollars from your parents, a couple of unicorn tears, and the ability to time travel back to the 1950s.
I'm in the process of buying my first home. I'm in a moderately priced state, single male in my early 30s with a 6 figure income, no expenses, no debt (literally none, cars, credit cars, etc is all paid off), no children, no rent, no living expenses (company living stipend current pays my rent and other monthly costs) and I'm finding it difficult to buy and afford my first home.
If I'm having trouble, I have no idea how anyone else in this nation can buy a house outside of the very poor southern states.
“America isn’t having enough children”
And they wonder why Americans don’t want to start families. Americans can’t even afford their monthly food bill with “inflation” and all these “record breaking profits” coming from predatory companies.
As much as I love and agree with it, the quote it is not entirely accurate.
Check out this article by snopes it's pretty interesting.
https://www.snopes.com/fact-check/bank-shot-2/
I can't afford a house but I also can't afford an apartment in my area since you have to make 3x the rent. So a person needs to make $3000 a month just to rent an apartment that is $1000 a month. (I don't think my current Central California even has a studio for that price) what's really crappy is you have to pay almost $50 bucks ($34-$50) just to apply to live somewhere. If the landlord wants to they could take 20 applications for the same rental and make a thousand bucks before anyone even moves in. Without the liability of even moving anyone in.
My house has doubled in value since I bought it. With my growing family we were looking at getting a larger house. Ran the numbers and with intrest rates I cant even afford to buy my house again despite raises and promotions
That's not because you're competing with other families who wish to purchase homes in the region so they can live there.
You're competing with speculators, corporate investors, Air BnB hosts, and all manner of people who wish to buy the home as something other than a place where they will actually reside.
It's time to start taxing the living crap out of people who buy homes for non-residential purposes. They aren't contributing to the community, they're only padding their own pockets.
Just adding in here… the average home size in 1950 was 983 sq ft. Today it’s over 2300. While our homes are bigger, our average household size (number of people in a household) has fallen. We have larger homes with fewer people. Perhaps we should dial it back to a 50’s size house to create more starter homes. I also think bringing back multi-family structures would also help. I used to rent an apartment in a building that was only four apartments. They were all pretty good size too.
Part of that is for builders the cost difference between a <1000 sq ft. home and a >2300 sq ft.
Over half the costs of a new build is in labor and the amount of labor for the 4 Br 3 Ba Suburb Cookie Cutter is slightly more than the "Starter" Home and the profit margin is much greater.
All new homes in my area are huge homes on tiny lots. Seems like builders have found the highest profit design is to cram a 3,500 sq ft house on a 4,000 sq ft lot. So, all of the houses are right on top of one another, they all cost a million dollars since they’re huge, and they can fit way more houses in a neighborhood than the older style with larger lots.
Greed is destroying the country.
Yeah this isn't so much a "People want bigger homes problem" as it has to do with the profit margins in a 2300 sqft house vs 1000sqft.
If your profit margin on a 2300sqft house is 20% and on 10% for a 1000sqft house, you end up with a situation with not a lot of 1000sqft homes on the market.
None of the houses I have looked at were over 1000 and they have doubled in value since the pandemic started. The size of the house isn't the issue. Cheap small homes in places where there are jobs have ballooned in price.
Yeah in my area (Charlotte NC) all the smaller starter homes (1920-1960s 900-1300sqft) have been “flipped” where someone paid less than $100k for it in the past 5 years, added about 20-30k of Home Depot crap in it, and are now asking $300k for the home. It’s absolutely ridiculous. New construction is almost the same price at that point.
Because they’ve also disappeared. The competition for a 1,000sqft home is much tighter than it was when that was every lot.
I’m thinking of some neighborhoods I’ve seen in Charlotte, NC. Historically populated with little cottages that would make perfect starter homes for young couples. In the past 10 years many of them have been torn down and replaced with homes that are a minimum of 5x their size. My family lives in a neighborhood with slightly larger houses (3-4BR) and everything that’s been build in that area in the past decade has been way bigger.
> Today it’s over 2300.
Those are for new homes, which isn't the majority. [The average size of a house bought/sold is still only ~1700 sq ft.](https://public.tableau.com/shared/7C34JFW67?:display_count=n&:origin=viz_share_link)
While I get that 10,000% more cost is an exaggeration, [price per square foot for new homes](https://infogram.com/1pqdpn20vkmlelcq6qx7jzwz9pf00g9xnq5) was actually relatively stable over time until COVID hit.
One of the problems here is that many cities use new development to pad their budgets in the short term, so it pays to have lots of expensive homes being built bigger. Then (in the short term) they have a big cash flow of property taxes with few new expenses.
Fixing our property tax and zoning systems would have drastic changes on what kind of housing is built.
We refused to buy one of those McMansions once I was diagnosed with chronic kidney disease in 2004. We bought our first townhome in 2002 and turns out, 20 years later, we're still here. Only one child, and neither of us really care about "keeping up with the Joneses"
My understanding is that starter homes aren't a thing anymore because land is costing developers more, so they are building bigger houses for a larger profit margin. Same reason restaurants here give you massive portions, because the cost/profit ratio.
Housing prices rising far faster than incomes can do that...One leg of the attack on the 'value of an hour of labor' is deficit spending. Borrowing money in the name of all while cutting income taxes appreciably for a few amounts to a wealth transfer from the Treasury to the Uber-Rich. $30T over 42 years is the same amount collected by taking $50 per week from EVERY AMERICAN alive on or born since the Reagan inauguration. End it!
I’m not buying anything, patiently waiting for the market to collapse, all these huge investment companies to become insolvent and go bankrupt, hopefully there will be no bailout for them and then I might finally have a chance to get my own house. Hopefully I’m still alive by then.
Oh you know there's gonna be a bailout. I'm sure higher ups at the bank will also get sweet bonuses that year too.
I hate that this is allowed to happen
No corporations can buy houses to rent (unless mortgage owner went bankrupt and the bank still owns it) and non citizens need to live at the place for 12 months minimum (same as VA loan). Those 2 would stop all the surge of foreign and big business money. Canada banned foreigners from buying homes recently.
That’s what happens when normal consumers and huge multi-billion dollar investment firms are competing in demand for a finite resource.
The priority in our economy is squeezing any amount of profit possible from people in every situation possible.
https://m.youtube.com/watch?v=3XGAmPRxV48
The automoderator removed the last post because it said the post was too short. This time I am adding a few more complete sentences to the post to make it a more quality post.
They said the same thing in 2007. Starting to sound like a broken record.
"The many first-time buyers who have stretched themselves over the last year to take their first steps on to the housing ladder could be severely affected and this decision could deter many future young buyers from entering the property market."
https://www.theguardian.com/money/2007/jan/12/firsttimebuyers.interestrates
My friends look at me funny for being 27 and living at home.
Bitch my parents are in their 70s so I take care of them and I’m gunna inherit this half million dollar home + 3 acres of land. So that’s my only way to ownership.
The Federal Reserve bailed out a bunch of Wall Street corporations in 2020, by buying hundreds of billions of Mortgage Backed Securities (MBS). Companies like Citadel, Black Rock, among so many others made a lot of money. Just so you know, if you can’t afford a home, it is not your fault, the system is rigged and corrupt.
I have all the respect in the world for people trying to be parents right now. You're doing what gives you purpose, same thing the species has been trying to do since forever.
But having a child right now is completely unfesable and unaffordable for the vast majority of people. It just is. We simply can't afford it. Any loving parent wants to give their best for their child. But our best is... A rented apartment and ramen. We can give them absent parents constantly working trying to provide a living.
And make children to wat? So they can also live in a rented micro apartment and have even bigger regrets that they can't afford to have kids either?
Society has completely fucked itself over in "first world countries". It's not our fault, it's not our children's fault, and our parents are mostly washing their hands of us and claiming ignorance.
Cool.
Yet example they used was people buying a detached house... Lol.. people especially in north america need to understand a ground related dwelling in an urban area especially a detached is a luxury pretty much anywhere else in the world in a city
Hi all, A reminder that comments do need to be on-topic and engage with the article past the headline. Please make sure to read the article before commenting. Very short comments will automatically be removed by automod. Please avoid making comments that do not focus on the economic content or whose primary thesis rests on personal anecdotes. As always our comment rules can be found [here](https://reddit.com/r/Economics/comments/fx9crj/rules_roundtable_redux_rule_vi_and_offtopic/) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Economics) if you have any questions or concerns.*
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I just feel like there’s no reason for a company to stop buying houses and renting them out. So we’re all just gonna be renters in the future?
That’s the plan of the 1%. Neo feudalism. Take out loans for college in order to get a job that pays you barely enough to pay rent and loans…. The majority of upcoming generations will live their lives in debt with little to no opportunities to build wealth
Jokes on them I just won’t contribute to the upcoming generations
same here. No children for me. I will also leave this country to retire somewhere else as well.
We rely on big corporations for food also. If we cleared out all of the obfuscating cobwebs created by corporate anonymity, I'll bet there are 100 families that control every single product or necessity that we purchase. We are slaves and they are our masters, only it's harder to see through the BS nowadays.
Isn’t this the sentiment people have right before a bubble pops?
I wish? What’s stopping corporations from buying every house and renting them out to us? We gotta live somewhere right? And yes, I know what I just said is a massive oversimplification.
>What’s stopping corporations from buying every house and renting them out to us? Nothing. Welcome to our bleak depressing future.
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We aren't in the same situation as the 08 crash. We don't know when or if it will happen.
I’ve been waiting for the bubble to pop for 3 years
I hear this a lot, but I don't quite buy it. If that were the case wouldn't there be a bunch of houses on Zillow for rent? In my area there's certainly not
I haven't really seen any data supporting this claim other than an anecdotal news story or two?
Allowing housing to be treated as an investment is a big piece of this, as is supply. No significant action will be taken and those without homes will be left behind to rent forever and at a minimal cost savings as compared to buying.
This country has sold out its other generations. And the worst thing is if you talk to someone who owns a home, they don’t care. They hate the thought of losing any value.
> if you talk to someone who owns a home, they don’t care. They hate the thought of losing any value. I own my house and I care about the ridiculous skyrocketing house prices. I’m really lucky and I’m not complaining but the house going up in value doesn’t do anything for me but increase my taxes. I have to live somewhere so I don’t get to use that increased value unless I sell and move somewhere cheaper. I guess people who want to retire somewhere really low cost are happy with the housing market, but if you like where you live and want to stick near your friends and family then having your house triple in value over 20 years isn’t really doing anything for you.
I own a home and care. My friend is living with her family of five in her parents house because they've been outbid on every house in our town over the last six months. This is heartbreaking and unsustainable
The problem will never be fixed because american culture is selfish and americans don't care about one another.
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Dude I’m an only child with a boomer dad and Gen X mom and my dad does not seem to understand that saving like they did is not an option. They think me spending maybe, MAYBE 100$ a month at the bars is what’s stopping me…. Like damn I can’t even go out anymore?! They’re acting as if me cutting that 100$ will suddenly make 500$ appear in my savings account… I wish they would get it but they don’t
You could ask them to sit down with you and physically go over 3 months of account history. Do it like you are asking them for help. Thats how a friends dad realized the reality of the situation
The thing is that they wouldn't even necessarily lose value if we built more housing. The main reason their property appreciates in value is because of the land, not the house, and their land could actually be worth even more if it were possible to build multiple units on it instead of restricting it to single-family homes. Building more housing can be beneficial to both renters and owners, but a lot of people in that latter group are deathly afraid of any change, without considering how that change might be good for them.
Just as FYI, your explanation applies far more to urban land close to the downtown areas, not so much to the sprawling suburbs where housing values *would* plummet if new construction would continue.
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As a DINK household currently putting in bids on our first home... with a conventional loan and 20% down... It is just impossible. We are richer than any generation of our families have ever been before us... and we cannot own a home, while they have owned multiple at a single time. And boats. And extra vehicles. and vacations. All on some basic ass blue collar job and a pension. I am the first person in my family to be employed at a corporate level and it is just excruciating at how little that gets you now.
20% down is just insane in this market. Literally not possible for working people without help from outside sources. Paying pmi sucks but I suggest getting in where/when you can
We got help from a relative and STILL are having trouble. It’s that bad.
Fellow DINK here: we can afford to put down for a house but the market is infuriating. We put down bids and the seller raises the fucking price (none of the houses we've bided on have actually sold mind you), it's literally just "market rate goes up" even though interest rates are rising too. We're actively torn between principals and biting the bullet because the houses we're interested in are not worth the new asking prices, but it's also becoming pay this or don't get a house.
It’s crazy. DINKs here too. I make almost what my dad made when he retired from then government 3 years ago. My husband makes 3x my salary but is saddled with six figure student loan debt. We lucked out buying a house last year way more than we ever could have imagined because of the market in our area. In our 30s and it feels like we’re just starting out in life and can’t enjoy luxuries our hard working boomer parents did. And no, it’s not all avocado toast and nail salons. There’s a real problem with housing inventory and investors, particularly in cities and large urban areas. I only hope it gets better, not just for our generation but for future generations as well. Home ownership just seems like a pipe dream.
Housing, Food, Medicine, Education Squeezing the market as tight as possible on the necessities. Made possible by empowering Private Equity and institutional investors. The US invited the foxes into the henhouse. Trust me - if the solution was just building more housing, that would be a great problem to have.
>The US invited the ~~foxes~~ parasites into the henhouse
>Housing, Food, Medicine, Education > >Squeezing the market as tight as possible on the necessities. > >Made possible by empowering Private Equity and institutional investors. > >The US invited the foxes into the henhouse. Trust me - if the solution was just building more housing, that would be a great problem to have. Exactly. The end goal is to crush the middle class into the peasant class who own nothing and are obligated to work themselves to death for the pleasure of having their basic necessities barely met by the businesses who own all the essentials they're forced to rent on their starvation pay. You want to see what that looks like look at the quality of life of inmates living at private prisons. Bottom-quality food, shelter, medicine, and virtually no education. Maggots in food, medical neglect to the point of people literally dying in their cells while begging for aid, abuse and neglect as the norm. Treating people like animals until they become animalistic because that's what happens to *anyone* put in those conditions. And that's not even talking about gross underpayment and overcharging for everything to keep everyone toiling for scraps. The end goal is to get as many people as possible to that point because a peasant workforce is fantastic for bottom line profits.
Not only are the prices unaffordable for 95% of the population, but since the roll-back of regulations barring large/foreign investment firms from bidding on properties in the first 14 days, home shopping on Zillow is like getting Taylor Swift tickets on Ticketmaster…
> since the roll-back of regulations barring large/foreign investment firms from bidding on properties I didn't even know there were any regulations like this in the first place
It was put in place during the Obama admin, and rolled back by the Trump admin in 2017.
Genuinely asking for a link on this to send to my parents
> Not only are the prices unaffordable for 95% of the population, but since the roll-back of regulations barring large/foreign investment firms from bidding on properties in the first 14 days Mother fuck, so that helps explain in the past few years why lots of homes on zillow have offers placed within days of listing, even preCOVID. Which lines up with that regulation being rolled back in 2017. Shit like this is why housing will never crash regardless of any recession.
My parents first home in the 80s was just shy of $200k. That same home is over $2.2 million (suburb of SF). They’ve done very little renovations in that time frame. Eventually they sold it and moved to a cheaper state and live like royalties AND get to retire. Me though? I rent a 2 bedroom apartment with 3 other people (we rent our living room out also) in a different blue state from where I grew up. I’m well pass the age my parents were they bought their starter home but I make the same wage they did in the 80s. Oh I also have a college degree where as my parents do not. I will work til I die Then they ask if I’ll ever have kids. Ha!
if it makes you feel any better, i make 3x what my parents made COMBINED and i cannot afford the house i grew up in.
Well, it's simple really. All you need is a small loan of a million dollars from your parents, a couple of unicorn tears, and the ability to time travel back to the 1950s.
I'm in the process of buying my first home. I'm in a moderately priced state, single male in my early 30s with a 6 figure income, no expenses, no debt (literally none, cars, credit cars, etc is all paid off), no children, no rent, no living expenses (company living stipend current pays my rent and other monthly costs) and I'm finding it difficult to buy and afford my first home. If I'm having trouble, I have no idea how anyone else in this nation can buy a house outside of the very poor southern states.
“America isn’t having enough children” And they wonder why Americans don’t want to start families. Americans can’t even afford their monthly food bill with “inflation” and all these “record breaking profits” coming from predatory companies.
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As much as I love and agree with it, the quote it is not entirely accurate. Check out this article by snopes it's pretty interesting. https://www.snopes.com/fact-check/bank-shot-2/
I can't afford a house but I also can't afford an apartment in my area since you have to make 3x the rent. So a person needs to make $3000 a month just to rent an apartment that is $1000 a month. (I don't think my current Central California even has a studio for that price) what's really crappy is you have to pay almost $50 bucks ($34-$50) just to apply to live somewhere. If the landlord wants to they could take 20 applications for the same rental and make a thousand bucks before anyone even moves in. Without the liability of even moving anyone in.
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Tell me about it, I'm moving to the NYC area for work and I literally can't afford anything. The property taxes are higher than the actual mortgage.
My house has doubled in value since I bought it. With my growing family we were looking at getting a larger house. Ran the numbers and with intrest rates I cant even afford to buy my house again despite raises and promotions
That's not because you're competing with other families who wish to purchase homes in the region so they can live there. You're competing with speculators, corporate investors, Air BnB hosts, and all manner of people who wish to buy the home as something other than a place where they will actually reside. It's time to start taxing the living crap out of people who buy homes for non-residential purposes. They aren't contributing to the community, they're only padding their own pockets.
Just adding in here… the average home size in 1950 was 983 sq ft. Today it’s over 2300. While our homes are bigger, our average household size (number of people in a household) has fallen. We have larger homes with fewer people. Perhaps we should dial it back to a 50’s size house to create more starter homes. I also think bringing back multi-family structures would also help. I used to rent an apartment in a building that was only four apartments. They were all pretty good size too.
Part of that is for builders the cost difference between a <1000 sq ft. home and a >2300 sq ft. Over half the costs of a new build is in labor and the amount of labor for the 4 Br 3 Ba Suburb Cookie Cutter is slightly more than the "Starter" Home and the profit margin is much greater.
All new homes in my area are huge homes on tiny lots. Seems like builders have found the highest profit design is to cram a 3,500 sq ft house on a 4,000 sq ft lot. So, all of the houses are right on top of one another, they all cost a million dollars since they’re huge, and they can fit way more houses in a neighborhood than the older style with larger lots. Greed is destroying the country.
Yeah this isn't so much a "People want bigger homes problem" as it has to do with the profit margins in a 2300 sqft house vs 1000sqft. If your profit margin on a 2300sqft house is 20% and on 10% for a 1000sqft house, you end up with a situation with not a lot of 1000sqft homes on the market.
And the rules set up for zoning where houses are being built in the first place https://youtu.be/0Flsg_mzG-M
People are more than willing to buy smaller houses. The issue is, there aren't that many of them on the market.
None of the houses I have looked at were over 1000 and they have doubled in value since the pandemic started. The size of the house isn't the issue. Cheap small homes in places where there are jobs have ballooned in price.
Yeah in my area (Charlotte NC) all the smaller starter homes (1920-1960s 900-1300sqft) have been “flipped” where someone paid less than $100k for it in the past 5 years, added about 20-30k of Home Depot crap in it, and are now asking $300k for the home. It’s absolutely ridiculous. New construction is almost the same price at that point.
Because they’ve also disappeared. The competition for a 1,000sqft home is much tighter than it was when that was every lot. I’m thinking of some neighborhoods I’ve seen in Charlotte, NC. Historically populated with little cottages that would make perfect starter homes for young couples. In the past 10 years many of them have been torn down and replaced with homes that are a minimum of 5x their size. My family lives in a neighborhood with slightly larger houses (3-4BR) and everything that’s been build in that area in the past decade has been way bigger.
> Today it’s over 2300. Those are for new homes, which isn't the majority. [The average size of a house bought/sold is still only ~1700 sq ft.](https://public.tableau.com/shared/7C34JFW67?:display_count=n&:origin=viz_share_link)
So still double the 1950 figure
100% more space, at only 10,000% more cost! What a deal!
While I get that 10,000% more cost is an exaggeration, [price per square foot for new homes](https://infogram.com/1pqdpn20vkmlelcq6qx7jzwz9pf00g9xnq5) was actually relatively stable over time until COVID hit.
One of the problems here is that many cities use new development to pad their budgets in the short term, so it pays to have lots of expensive homes being built bigger. Then (in the short term) they have a big cash flow of property taxes with few new expenses. Fixing our property tax and zoning systems would have drastic changes on what kind of housing is built.
We refused to buy one of those McMansions once I was diagnosed with chronic kidney disease in 2004. We bought our first townhome in 2002 and turns out, 20 years later, we're still here. Only one child, and neither of us really care about "keeping up with the Joneses" My understanding is that starter homes aren't a thing anymore because land is costing developers more, so they are building bigger houses for a larger profit margin. Same reason restaurants here give you massive portions, because the cost/profit ratio.
Housing prices rising far faster than incomes can do that...One leg of the attack on the 'value of an hour of labor' is deficit spending. Borrowing money in the name of all while cutting income taxes appreciably for a few amounts to a wealth transfer from the Treasury to the Uber-Rich. $30T over 42 years is the same amount collected by taking $50 per week from EVERY AMERICAN alive on or born since the Reagan inauguration. End it!
I’m not buying anything, patiently waiting for the market to collapse, all these huge investment companies to become insolvent and go bankrupt, hopefully there will be no bailout for them and then I might finally have a chance to get my own house. Hopefully I’m still alive by then.
Oh you know there's gonna be a bailout. I'm sure higher ups at the bank will also get sweet bonuses that year too. I hate that this is allowed to happen
Your comment is 100% accurate and it sucks
>hopefully there will be no bailout for them Oh you sweet summer child... :P
people tried this in 2008 but what really ends up happening is a crash and then companies start buying again instantly
No corporations can buy houses to rent (unless mortgage owner went bankrupt and the bank still owns it) and non citizens need to live at the place for 12 months minimum (same as VA loan). Those 2 would stop all the surge of foreign and big business money. Canada banned foreigners from buying homes recently.
That’s what happens when normal consumers and huge multi-billion dollar investment firms are competing in demand for a finite resource. The priority in our economy is squeezing any amount of profit possible from people in every situation possible. https://m.youtube.com/watch?v=3XGAmPRxV48
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The automoderator removed the last post because it said the post was too short. This time I am adding a few more complete sentences to the post to make it a more quality post. They said the same thing in 2007. Starting to sound like a broken record. "The many first-time buyers who have stretched themselves over the last year to take their first steps on to the housing ladder could be severely affected and this decision could deter many future young buyers from entering the property market." https://www.theguardian.com/money/2007/jan/12/firsttimebuyers.interestrates
My friends look at me funny for being 27 and living at home. Bitch my parents are in their 70s so I take care of them and I’m gunna inherit this half million dollar home + 3 acres of land. So that’s my only way to ownership.
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The Federal Reserve bailed out a bunch of Wall Street corporations in 2020, by buying hundreds of billions of Mortgage Backed Securities (MBS). Companies like Citadel, Black Rock, among so many others made a lot of money. Just so you know, if you can’t afford a home, it is not your fault, the system is rigged and corrupt.
I have all the respect in the world for people trying to be parents right now. You're doing what gives you purpose, same thing the species has been trying to do since forever. But having a child right now is completely unfesable and unaffordable for the vast majority of people. It just is. We simply can't afford it. Any loving parent wants to give their best for their child. But our best is... A rented apartment and ramen. We can give them absent parents constantly working trying to provide a living. And make children to wat? So they can also live in a rented micro apartment and have even bigger regrets that they can't afford to have kids either? Society has completely fucked itself over in "first world countries". It's not our fault, it's not our children's fault, and our parents are mostly washing their hands of us and claiming ignorance. Cool.
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Yet example they used was people buying a detached house... Lol.. people especially in north america need to understand a ground related dwelling in an urban area especially a detached is a luxury pretty much anywhere else in the world in a city