Current Events > Will housing in a place like San Francisco or New York ever be affordable?

(+) Yeah! (+)

For the working class?

Housing prices are dropping and wifey is hoping to strike on a house in San Francisco (the city itself) in a few years when we save for a down payment

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How do so many people live in these places if its not affordable?

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Chicken posted...

How do so many people live in these places if its not affordable?

A majority of homeowners in SF bought their house when prices were low back in the 80s and 90s.

Also forgot to mention that many people work in big cities but have a long commute home because of housing prices

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bump

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Probably not until there's a massive shift in American capitalism or the housing market. Until then, lots of roomates my friend.

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It usually takes a disaster of some kind to cause property value to plummet. I would guess a sizeable earthquake (in the case of S.F) would be sufficient.

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If that's the case, how come Covid-19 hasn't effected property values?

Or has it in some places?

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Wii_Shaker posted...

If that's the case, how come Covid-19 hasn't effected property values?

Or has it in some places?

Wait till more foreclosures happen next year. Property values will drop for sure. Just not sure if the drop in prices will happen in big cities like San Francisco though

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Covid relief initiatives include compensation for landlords. Think section 8 housing. The government is paying their rent at least until it's no longer sustainable. Because of all the new hassles many are delaying putting their homes up on the market.

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AzNDarkSamurai posted...

A majority of homeowners in SF bought their house when prices were low back in the 80s and 90s.

there's a friend of my mom that lives in mountain view, she bought her house decades ago (70s?) and it was around $150K i think. small house, one floor, 3 bed 2 bath, barely a lawn or backyard. i think she said it was valued at like $1.8 million in 2018

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KnightofShikari posted...

there's a friend of my mom that lives in mountain view, she bought her house decades ago (70s?) and it was around $150K i think. small house, one floor, 3 bed 2 bath, barely a lawn or backyard. i think she said it was valued at like $1.8 million in 2018

that sounds about right

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My friend is a teacher in SF. She lives in a house with 3 other people she doesnt even know and pays around $1.5k in rent. And that's supposedly a good deal lol I love SF whenever I visit but I could never afford to live like that.
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Smashingpmkns posted...

My friend is a teacher in SF. She lives in a house with 3 other people she doesnt even know and pays around $1.5k in rent. And that's supposedly a good deal lol I love SF whenever I visit but I could never afford to live like that.

that actually is a really good deal for SF as crazy as that sounds

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AzNDarkSamurai posted...

that actually is a really good deal for SF as crazy as that sounds

Yeah and that's fucking crazy. $6k rent in total to me is insane. I could be paying for like 3-4 houses here in Vegas lol
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Smashingpmkns posted...

Yeah and that's fucking crazy. $6k rent in total to me is insane. I could be paying for like 3-4 houses here in Vegas lol

You can haha. Not to mention you can get a pool with it too with what youd pay for the same price here.

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No, and simple supply and demand is the issue.

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I wasnt sure if demand was gonna lower since a lot of people moved out of San Francisco since the pandemic happened

Im hoping that will lower prices

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I mean, these places were more affordable at one point.

Housing prices in areas like NY and SF are artificially high because the government is intentionally creating a shortage.

Yes if employers would just pay employees a fair wage

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EndOfDiscOne posted...

Yes if employers would just pay employees a fair wage

Wage growth has kept up with inflation. Housing prices are far above inflation.

Don't blame employers for what local governments do.

Prices will go down when people stop making fun of flyover states and actually move there. Everyone complaining that the most in demand areas in the country are out of their price range while they laugh at the idea of moving anywhere else are entitled children causing the very problem they want someone else to fix.

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Broseph_Stalin posted...

I mean, these places were more affordable at one point.

Housing prices in areas like NY and SF are artificially high because the government is intentionally creating a shortage.

Or maybe, just maybe, there is a limited supply of land and basic Economics 101 is going on. There are laws in place to keep landlords from dividing 300 sq/ft studio apartments into 2 150 sq/ft apartments for a reason.

kelemvor posted...

Or maybe, just maybe, there is a limited supply of land and basic Economics 101 is going on.

Governments intentionally limiting the supply of new housing so that property values for existing owners skyrocket is only "economics 101" if you're talking about market distortion.

Don't talk to me about the "limited supply of land" when SF doesn't allow you to build a multi-unit building over an old laundromat.

Broseph_Stalin posted...

Governments intentionally limiting the supply of new housing so that property values for existing owners skyrocket is only "economics 101" if you're talking about market distortion.

Don't talk to me about the "limited supply of land" when SF doesn't allow you to build a multi-unit building over an old laundromat.

Well, the people keep approving and voting the same party in office over there, so the Government must know what they are doing.

Is Yonkers not good enough?

It's a cycle. The wealthy/elite get to thinking they're so important they raise housing prices in the area and surrounding areas by default to exclude the poor/working class. The working class can no longer afford to live in the area, so they leave. The wealthy are forced to sell or take a loss. Crash. Repeat. Length of time varies.

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Cities were affordable when air pollution was rampant and crime rates were high.

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Broseph_Stalin posted...

Don't talk to me about the "limited supply of land" when SF doesn't allow you to build a multi-unit building over an old laundromat.

If the laundromat is still active, it would be a super dick move to eminent-domain it to build an apartment tower.
If it's abandoned, then there shouldn't really be anything stopping a developer from buying the land and building that tower.

As much as I would like to enjoy saying, "I own property in SF" it just does not make sense for my fiance and I to put a down payment on a house right now. Even though we have a enough to do it it just doesn't make sense.

Have to pay the insane taxes that makes it seem like you're renting anyways. Quality of life isn't good, education is one sided. With companies learning more and more about the benefits of remote working I'm sure I'll be able to find a remote job after college. I'm moving back down south/midwest when I do.

Getting paid bay area money and living like royalty in the "flyover" states is great. Better quality of life, lower property taxes, less brainwashing of my kids. Living in the bay is borderline financially irresponsible especially since you're not getting any real quality from leaving here, but only to brag.

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Not if the market is allowed to continue as is, barring some event that would cause property values to crash.