My salary didn’t change at all, but homes went up 82%. The money I saved for a down payment and my salary no longer are good enough for this home and many others. This ain’t even a “good” home either. It was a 200k meh average ok home before. Now it’s simply unaffordable
You just need to stop watching Netflix and buying avocado toast.
At least that’s what old people say anyway.
Can confirme. I stopped drinking Starbucks and now I own a 50 acre plot with a 6 bedroom house on it. If only I would have listened to their Facebook comments sooner, I could have afforded that private jet too. Edit: Apparently sarcasm is lost on a few. So for explicitness - /s
With the Star bucks prices you might as well by a house. Damn they are expensive. People spend like $10 on coffee
I honestly just started going to my own local coffee joint. What used to be expensive for something like a cappuccino (like 7 bucks) is now cheaper than starbucks. Plus I help a small business.
Assuming you spend $10 on avocado toast every day, as well as $75 on eating out for every meal, $20 for Starbucks, and ALSO assuming you have $150 worth of monthly subscriptions:
It will take you 25 years to save one million dollars. That’s assuming you never get sick, never lose a job, never need to buy a car or have major repairs, or basically any kind of surprise expense or setback that could wipe out savings.
To be the richest person on earth, you would need to save that money every year for over 6 MILLION YEARS
Not to devalue your point, but if you truly were spending (10 + 3*75 + 20)*30 + 150 per month (so a total of 7800 USD) and you invest it in an index fund getting back 5%, you’ll have your million in 10 years. 8 years at 10% which is the long-term growth rate of DJIA and S&P 500.
You’ll still never be the richest person in the world, but if you truly were burning away that much money, you could make decent dough just from investing it passively. In 30 years you’d have like 15 million, more than enough to retire.
Now the only real problem is that nearly nobody is actually burning that much cash and the “stop eating avocado toast” suggestions are indeed stupid af.
A lot of boomers are going to die in the next ten years or so. That is the biggest age demographic in the u.s. the population is going to shrink by a lot. That’s why there’s a push to make people have more kids, because otherwise workers and consumers have a lot more power.
Private equity is already gobbling up the houses. Boomers are cashing in to finance extravagant retirement. Those who are not, are leaving it to their children who will then sell to private equity groups.
Eventually supply will catch up with demand which will supress rent (if we do something about the price fixing) and it will no longer be a viable investment. They’re probably losing a lot to management costs and capital expenses already.
if we do something about the price fixing
Narrator voice: they didnt
Single-family rental is also a huge thing now.
I work in municipal development, and since 2021, 100% of single-family subdivision developments that have approached the city have been for rental-only neighborhoods.
And they want to put all the homes on a single shared commercial water meter on a single piece of property instead of extending public lines, so they can’t even be converted later without massive infrastructure projects and replatting.
Eventually supply will catch up with demand
Not if NIMBYs have their way. We have a MASSIVE supply problem already, and it’s getting worse.
Where I am it’s more profitable to let it sit empty and make a Tax write of than lowering the asking rent.
Not exactly a good business strategy. You can deduct the taxes, insurance, management costs, but you have to amoratize depreciation of the building over 28 years. Not to mention that an empty house is going to start developing problems fairly quickly.
A house in Austin
2018: $275,000
2022: $725,000Those are actual numbers from East Austin. I believe the 2024 market rate is $625,000 but it hasn’t changed hands again so I can’t say for certain.
And conservative Texans keep laughing that californians are moving to Texas because “They hate the blue politics”, never guessing that they would bring their blue politics and money with them, driving up land value. Definitely not saying that they’re bad, but that it’s ironic that they didn’t think through the consequences
The people fleeing California for Texas aren’t people who love California and its politics.
They’re mostly Republicans, and they’re making Texas more red AND increasing home prices.
but that it’s ironic that they didn’t think through the consequences
And what part of that consequence is the native Texan’s fault? If anything it simply proves their point.
I didn’t say fault anywhere. I said it was ironic. It’s ironic that they laughed at Californians moving to TX, talked about how much better TX was better than CA, never realizing that the location had nothing to do with the problems, but rather capitalism and population growth. It’s ironic that the things they said Texas didn’t have are now the things Texas is directly facing.
For it to be ironic, there would have to be some sense of Texans doing it to themselves. People coming in from another state is not a Texan’s fault. I don’t see the “irony” here.
Is this one of the areas where corps are buying up a shitload of real estate?
I believe it’s on earth, yes.
My moon base is not gaining ANY land value…
If it’s on Zillow then yes. The trick is to find houses that are not on MLS/Zillow…but realistically there are none. GL! We got ours wnd in one year it went up 40%in a year.
Also in my area that house is a steal and would have offers before it hit Zillow.
At only 82% I’m going to say no.
My lucky ass bought a house in late 2019. I’m happy I’m making money on it but this doesn’t seem healthy
You’re only making money if you downsize, move somewhere cheaper, or switch back to renting. If you move and all the other houses have gone up, then you just end up having to sink any gained equity into affording your new place. Rising prices really only help developers, realtors, and REIT’s.
Housing price increases are actively harmful to those who want to upgrade, since it increases the incremental cost of upgrading.
Housing Taxes also increase.
Exactly.
It is theur business to make money off it.
I am not sure how people living in house got convinced that they are now investors though
You’re right. It’s not healthy to profit so much from corporations greed.
Therefore, it’s only right that you sell me your house for $1
I, too, would like a house for $1 please
Same here. And my stupid ass father in-law spread the rumor that we wanted to sell and we instantly had several offers. But we like it here.
We got in on on our house in early 2016 and the price of real estate in our area increased by 20% while we were in escrow.
Our house has more than doubled in price since then but if we had fallen out of escrow, we would not have been able to buy anything anywhere near our jobs/preferred city (and my partner and I have a combined income north of 150k/year).
Shit is crazy these days
With you there. Didn’t realize how lucky we were, and honestly thought about waiting just one more year on multiple occasions. What’s done is done, all I can do now is not feel guilty I got in, but rather just make the most of it. Pay off as quickly as I can, and vote to help others afford houses too.
Well you are set so luckily it doesn’t affect you much in theory. If it crashes so be it as you probably aren’t in a hurry to move.
I like the utility feed hanging off the front of the house going straight through the roof and blocking them from installing the other fake shutter. I wonder what other construction horrors lurk inside.
Tbh this is more than mildly infuriating…
Being able to buy a $200,000 house in the town I live in would change my life so much.
Y’all realize this is a bubble, right? I almost feel sorry for these investors, gonna have their ass handed to them in the coming decade.
If Big Macs, houses, gas and college tuition all went up, it’s time to realize these are not all in bubbles and instead realize due to inflation your salary has been halved.
No true! Plebs got 12% raises over last few years ans even for one quarter outpaced inflation 🤡
Not really. The system will instead keep finding ways to get people to rent at higher prices or take out low down payment loans with ever larger monthly payments taking a lot more of take home salaries and making it harder than ever to save and invest.
The rental aspect isn’t a bubble. Until they start viciously taxing single-family home rental, home prices are going to stay high because they’re not being bought as homes but as assets for rent-seeking.
Shout out to [email protected]
I feel sorry for any one whose bought a house over the last couple years.
Bought a house 5 years ago. Cheaper than renting and equity says I made 100k. It’s good.
It’s just lame how expensive they are now. BTW, they were to expensive 5 years ago too.
I don’t, it’s strictly better than renting
Is it though? My understanding is it’s more complicated than “simply better”. You need to account for property tax, home repairs, lack of mobility, housing market, etc.
The main downside is you have to pay closing costs to move. That means you should plan to stay in the home at least a handful of years or else you’d lose money likely. But with the market the way it is, get a house ASAP cause its going up like a roller coaster.
I bought mine 5 years ago and its gone up 50% in value since then.
It’s more along the lines of “buying is generally better than renting, but there are about 100 different factors to consider.”
There are advantages I’m not actually culpable for all of the maintenance of my property my actual rent right now is just about on par with anybody who is going to be paying to purchase their house and granted I’m not actually gaining anything as far as property value I also didn’t have to come up with a down payment or jump through hoops and try and get the house in the first place and very safe in my position and I’m very capable at this point after having lived here for many years landlord hasn’t asked for a new lease in the last couple years so I could actually walk away at any moment… there are benefits but they’re few
It depends on the area. Some places are actually gowning that fast in population
My janky duct tape together house I bought in 2010, that was built in '58 was 98k. In 12 years I sold it at 280k, with it still technically being out of code. My house was the cheapest sold in the neighborhood, some selling for 320k. It’s insane.
Friend of mine was saving up for a house 5 years ago. Prices have gone up almost 150%
Yeah that was me too… I FINALLY got to the point where I could realistically start looking, got the pre-approval and everything just after COVID started… People had already starting WFH and moving away from where they worked and investment companies kept buying and now I’m still living in someone else’s garage because prices went through the roof pretty much as I was looking…
Of course once you mention WFH everyone gets defensive and claims this was a trend, but those charts are the same everywhere. Houses in 2018-19 were often less than half of what they cost now…
WFH is a logical thing to imagine, but there’s a simpler trend that can be seen by looking at two graphs:
https://fred.stlouisfed.org/series/M2SL
https://fred.stlouisfed.org/series/MSPUS
“Please don’t melt the economy” printing press fired up in 2020 and real estate investors seemed to get plenty of that cash. While inflation didn’t quite match the M2 injection, anything “investment” like saw that bump. The M2 injection was enough to save the stock market, but housing, which did not see the same crash as stocks, got the same boost.
This is why, more than ever, people see that individuals almost don’t get to participate and big companies are instead buying the stuff and maybe letting people rent them if they feel so inclined. The big companies got the boon of the M2 and most individuals got a modest bump by comparison.
printing press fired up in 2020 and real estate investors seemed to get plenty of that cash.
Maybe I’m just ignorant, but in a just world that should have never been allowed to happen… I’m sure our politicians had nothingggg to do with that “oversight.” :/
Thanks for the links!
Generally speaking, one would have hoped for a better solution. To be fair though, we faced an unprecedented scenario in 2020, and for many of the indicators, the closest to precedent that we ever had was the Great Depression. So they did manage to dump truck enough money into the market to patch up the catastrophic drop of the stock market, and provide enough to keep the every day economy vaguely functional. Unfortunately the ‘fix’ was still very ‘trickle down’ style and ended up with an enduring imbalance favoring those already wealthy rather than some alternative that might have left folks on a level playing field.
Only 37 more years until he has that down payment.
This won’t change as long as property ownership and property renting is unified. There’s just to much of a business incentive from renting, even if it takes decades to make it back. Worst that can happen is that it can sell it back to a market that criminalizes homelessness instead of treating it or its causes.
82%, feel lucky. I bought my house in 2015 for $85k. Last assessment was almost $300k
I keep thinking that it would be a great time to sell but then I realize there isn’t a lot of other worth while places to go.
Unless you are ready to move to dead mans land
When the stock market doesn’t perform as much as a fundamental need
About everywhere… In Toronto it’s now 1 million+. In Vancouver it’s now 2 millions+
Right but OP is talking about a house in Waleska, Georgia, which has a population of 921 (as of 2020 census). Not really on the same level as Toronto or Vancouver!
People from big city retire, sell their house now worth a fortune and move out of the city and can afford to pay whatever people want for their house, this inflates the price of housing in rural areas and people born there can’t afford to live there anymore.
Hi, Georgian here. Trust me, nobody wants to live in the ass-end of Cherokee County, so far north it’s only barely in Metro Atlanta, but not far enough north to have decent mountain scenery or anything. Frankly, I’m appalled at how overpriced it was at $200K four years ago, let alone now.
People move out of cities just to have a bigger lot around their house. Hell over here arable land is getting scarce because people buy any agricultural lot that has a house on it just so they have space, doesn’t matter that it’s in the middle of nowhere with nothing to do and doing the grocery means an hour of traveling, they have the time to take their car and travel but they certainly don’t want to exploit the land they just bought!
Houses in my neighborhood are up 150-200%.
