Current Events > Man, housing is so fucked up in this country

(+) Yeah! (+)

-House prices are sky high and completely unaffordable
-Everyone refinance during covid and they are completely fucking set for the next 20-30 years and have no incentive to move
-Landlords/corporations bought up rental properties which they now own with <3.5% mortgage rates who also have no incentive to sell, because even if their profit margin is slim, they still make a profit
-The lower and middle-middle classes simply can't afford to buy houses when in the past they easily could

And I know theres this debate of renting vs buying but imaging you have a family of 4, your kids are in elementary/middle school, they have their friend circles established, and your landlord decides to jack up your rent for "market adjustments" and now you can't afford it and you have to move. And imagine always having that on the back of your mind that you might have to move every time your lease is up. And on top of that, you cant do any custom adjustments to your house. I've been in this situation as a kid and an adult and it just doesn't feel like your "home". Every time the wife offers a suggestion for home improvement, I go, "well, lets check with <landlord> on that".

Only fix is that people just have to start spreading out to cheaper areas of the country, even if that means changing jobs. When I lived in las vegas, I met ALOT of people who moved from other states all over the country in search for the prospect of better living, and they basically started driving ubers. It paid the bills, it was a career, LV was cheap at the time and a decent place. People will start seeking places like this.

The only other game-changer is a massive recession that forces people to sell their houses and relocate. At that point alot of people will be looking to rent and not buy new knowing their careers are not stable. That should increase supply by ALOT and lower the price.

I think there will be a breaking point in the economy. It may be a few years though.

All of the news headlines that say things like, "record profits for businesses" "wages are increasing" "credit card debt is increasing" "prices are higher than ever" none of them ever adjust for inflation. The only telling figure though is "savings are dwindling" - that can't be argued either way, and clearly tells you whats going on in the economy.

Dan_Haren- posted...

People will start seeking places like this.

This has already been happening since covid en masse. That's one reason housing is so fucked up. People making high salaries in higher COL areas moved to lower COL areas but kept the remote job and salary so they could pay way over asking prices on homes because fuck it it's still way cheaper than the place they came from.

The fed has raised interest rates but it feels like the whole thing is broken:

https://gamefaqs.gamespot.com/a/user_image/3/0/2/AAAlB_AAEaye.jpg

Dan_Haren- posted...

Only fix is that people just have to start spreading out to cheaper areas of the country

yeah that's what i did. moved to a wisconsin suburb. scored a 2018 house with 3br/2ba for 340k. still above what it would be in a normal economy for that location, but i got it below asking.

i know not everyone can work remote, but those who can should be getting the fuck out of the places that are charging them a 300% premium just for "m-m-muh restaurants and things to do!" (as they doordash in-n-out and watch youtube)

theAteam posted...

This has already been happening since covid en masse. That's one reason housing is so fucked up. People making high salaries in higher COL areas moved to lower COL areas but kept the remote job and salary so they could pay way over asking prices on homes because fuck it it's still way cheaper than the place they came from.

The fed has raised interest rates but it feels like the whole thing is broken:

https://gamefaqs.gamespot.com/a/user_image/3/0/2/AAAlB_AAEaye.jpg

There is nothing left but to brute force things.

The rich must be forcibly taken down several pegs. AirBnB must be shut down. Some space wasteful luxuries must be demolished and the land repurposed.

Rents have to be controled. Home flipping banned.

Unsuprised_Pika posted...

There is nothing left but to brute force things.

The rich must be forcibly taken down several pegs. AirBnB must be shut down. Some space wasteful luxuries must be demolished and the land repurposed.

Comments like these are completely useless.

Unsuprised_Pika posted...

There is nothing left but to brute force things.

The rich must be forcibly taken down several pegs. AirBnB must be shut down. Some space wasteful luxuries must be demolished and the land repurposed.

Rents have to be controled. Home flipping banned.

cringeposting 101

Well, I was planning to sell in a few years and get out of the city, but now Im thinking Ill just hunker down until retirement. I bought in 2019 and refinanced down to 2.5% just over a year later. Theres no way to justify sacrificing that for whats likely available out there in the near future.

Yep, the price increases have been insane. My mom bought her house for 260k back in 2004. Now it's worth about 900k. I'd have to make nearly 4x what she made back then to be able to live in her neighborhood.

Spurner posted...

Well, I was planning to sell in a few years and get out of the city, but now Im thinking Ill just hunker down until retirement. I bought in 2019 and refinanced down to 2.5% just over a year later. Theres no way to justify sacrificing that for whats likely available out there in the near future.

Yeah it sucks. I've had my house for a decade now and would like a bigger home, no way in hell can I give up what I have despite the fact I'd still make bank. I'm also too lazy and don't want to deal with renters bullshit to become a landlord, so I'm kind of stuck.

Preach

I bought my home during covid and yeah... I'm not gonna give this house up for the foreseeable future. Plus I've already done a bunch of stuff to the house to make it the way I want.

Only fix is that people just have to start spreading out to cheaper areas of the country, even if that means changing jobs.

States should also start forcing localities to upzone so that they can build more housing

it really is. buying a house will be impossible for anyone not wealthy or upper middle class in the future.