The housing market just slid into a full-blown correction

Payday23

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shonuff

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ADevilYouKhow said:
apple.news

A professional couple who make over $200,000 combined say it’s ‘hilarious’ to think they could afford a home in Los Angeles — FORTUNE

“With housing costs being what they are, just the idea of us ever owning a home is absolutely, like it’s funny," college professor Stan Oklobdzija told Fortune.
apple.news apple.news
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I'm gonna say something and im.sure a lot of people aren't gonna like it

The problem isnt that there isnt enough housing - if more housing is built it wont be lower priced - it will just be higher priced or flatten to the current rate - but it wont drive down the price of a home or rent because what makes rent and a home expensive is not JUST the competition from people for that home but what it COSTS to build that home/apt or maintain it .

nooone is building to take a "loss" or to drive down a "market"

a (newish constructed ) house currently costs about 400K to purchase or more .... but the large number of people that need to buy a home arent able to PAY 400K to buy a first home .....so building more 400K homes is not going to solve the problem of homes wanting to be purchased by people who cant afford a 400K home on the salary they currently earn.

noone has shown where any place has built more or dropped more supply into a market to drive down the price so significantly that people who normally havent been able to buy suddenly are able to buy/rent..

a pandemic caused a dip in some prices for renting but that was due to a collapse in demand here in NYC - not an increased supply .....the key thing is that for prices to flatten or even dip a small amount it took a pandemic.

so i dont see where building is actually the solution - because the problem isnt that there isnt enough housing ...


the problem is there are too many people.
 
Wild self

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shonuff said:
I'm gonna say something and im.sure a lot of people aren't gonna like it

The problem isnt that there isnt enough housing - if more housing is built it wont be lower priced - it will just be higher priced or flatten to the current rate - but it wont drive down the price of a home or rent because what makes rent and a home expensive is not JUST the competition from people for that home but what it COSTS to build that home/apt or maintain it .

nooone is building to take a "loss" or to drive down a "market"

a (newish constructed ) house currently costs about 400K to purchase or more .... but the large number of people that need to buy a home arent able to PAY 400K to buy a first home .....so building more 400K homes is not going to solve the problem of homes wanting to be purchased by people who cant afford a 400K home on the salary they currently earn.

noone has shown where any place has built more or dropped more supply into a market to drive down the price so significantly that people who normally havent been able to buy suddenly are able to buy/rent..

a pandemic caused a dip in some prices for renting but that was due to a collapse in demand here in NYC - not an increased supply .....the key thing is that for prices to flatten or even dip a small amount it took a pandemic.

so i dont see where building is actually the solution - because the problem isnt that there isnt enough housing ...


the problem is there are too many people.
Click to expand...

Thanos snap the population?
 
ADevilYouKhow

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winb83

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shonuff said:
I'm gonna say something and im.sure a lot of people aren't gonna like it

The problem isnt that there isnt enough housing - if more housing is built it wont be lower priced - it will just be higher priced or flatten to the current rate - but it wont drive down the price of a home or rent because what makes rent and a home expensive is not JUST the competition from people for that home but what it COSTS to build that home/apt or maintain it .

nooone is building to take a "loss" or to drive down a "market"

a (newish constructed ) house currently costs about 400K to purchase or more .... but the large number of people that need to buy a home arent able to PAY 400K to buy a first home .....so building more 400K homes is not going to solve the problem of homes wanting to be purchased by people who cant afford a 400K home on the salary they currently earn.

noone has shown where any place has built more or dropped more supply into a market to drive down the price so significantly that people who normally havent been able to buy suddenly are able to buy/rent..

a pandemic caused a dip in some prices for renting but that was due to a collapse in demand here in NYC - not an increased supply .....the key thing is that for prices to flatten or even dip a small amount it took a pandemic.

so i dont see where building is actually the solution - because the problem isnt that there isnt enough housing ...


the problem is there are too many people.
Click to expand...
Zoning and regulations keep the supply of houses low in comparison to the demand. There is a conscious effort to keep the price of housing high. For many people their house is their greatest store of their net worth.

There is a whole capital class of people that profit off the price of housing and the fact that they have the capital necessary to purchase property and act as middle men to poorer people who cant afford to purchase homes.

If housing was affordable for all a lot of systems we have in place would collapse. What would landlords do if they were no longer necessary? What would banks do about mortgages? Investors and hedge funds about buying and renting property?

More importantly housing holds the working class and middle class in place.
 
shonuff

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Wild self said:
Thanos snap the population?
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In theory ...yeh

We have pollution levels skyrocketing becuase of our consumption and industry but mainly becuase of the number of people

Think about this - we had huge population deficits from the last 2 world wars....1 in 5 men were in the armed forces and were killed in WW1 in WW2 entire generations were killed ...Vietnam which was draftees and you knew at least knew a few people that were going to vietnam

Now there's so many men in the military they didn't even need to consider a draft ...less than 2 percent of the male population are IN in the armed forces ....

There's a LOT more people in this country a lot more "successful" middle class people in the last 40 years ...

Let me not gloss over the most important fact -

The entry point a lot of people need to buy at the salary they typically earn is what homes were at 4 or 5 yrs ago which is 250 to 300k

So if the average price now is 400k an amount of houses would have to be placed on the market to either drive that price down massively ( which would.only occur in a huge calamity worse than the pandemic ) or somehow builders would have to build to take a HUGE loss ( which doesn't seem likely - you build to make a profit not to lose money )

So again - the solution. Is really reduced competition for.homes and thats to.keep prices flat ....people earning more will just set up inflation which is what we are experiencing after the pandemic ( high demand , rising wages, small supply )
 
shonuff

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winb83 said:
Zoning and regulations keep the supply of houses low in comparison to the demand. There is a conscious effort to keep the price of housing high. For many people their house is their greatest store of their net worth.

There is a whole capital class of people that profit off the price of housing and the fact that they have the capital necessary to purchase property and act as middle men to poorer people who cant afford to purchase homes.

If housing was affordable for all a lot of systems we have in place would collapse. What would landlords do if they were no longer necessary? What would banks do about mortgages? Investors and hedge funds about buying and renting property?

More importantly housing holds the working class and middle class in place.
Click to expand...
Well my ultimate point is even with rezoning and de regulation what is costs to build a house is not gonna change by that much .. again the law of supply and demand is basic economic force

Building more housing still has to pay the people who decide to build ...everyone buys a home to invest in it ....making houses like cars ( ie they lose value ) isn't a thing you want to have given how we have money invested ...RE Is what makes money for everyone.

You'd have to have to have something to replace that before you remove RE else you'll just have economic collapse ..which means you may not have anything ..,
 
winb83

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shonuff said:
Well my ultimate point is even with rezoning and de regulation what is costs to build a house is not gonna change by that much .. again the law of supply and demand is basic economic force

Building more housing still has to pay the people who decide to build ...everyone buys a home to invest in it ....making houses like cars ( ie they lose value ) isn't a thing you want to have given how we have money invested ...RE Is what makes money for everyone.

You'd have to have to have something to replace that before you remove RE else you'll just have economic collapse ..which means you may not have anything ..,
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If the supply of houses increased yeah the price would fall because suddenly there's drastically more houses out there.

Houses where I live cost on average $230K for an average middle-class home and in LA that might be $900K. The cost to build the house isn't why the price is so high.
 
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shonuff said:
I'm gonna say something and im.sure a lot of people aren't gonna like it

The problem isnt that there isnt enough housing - if more housing is built it wont be lower priced - it will just be higher priced or flatten to the current rate - but it wont drive down the price of a home or rent because what makes rent and a home expensive is not JUST the competition from people for that home but what it COSTS to build that home/apt or maintain it .

nooone is building to take a "loss" or to drive down a "market"

a (newish constructed ) house currently costs about 400K to purchase or more .... but the large number of people that need to buy a home arent able to PAY 400K to buy a first home .....so building more 400K homes is not going to solve the problem of homes wanting to be purchased by people who cant afford a 400K home on the salary they currently earn.

noone has shown where any place has built more or dropped more supply into a market to drive down the price so significantly that people who normally havent been able to buy suddenly are able to buy/rent..

a pandemic caused a dip in some prices for renting but that was due to a collapse in demand here in NYC - not an increased supply .....the key thing is that for prices to flatten or even dip a small amount it took a pandemic.

so i dont see where building is actually the solution - because the problem isnt that there isnt enough housing ...


the problem is there are too many people.
Click to expand...
i knew you were insane
 
greenvale

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Even with a supply increase I don’t think prices would drop. Way too many people are on the sidelines waiting to jump in.

Part of the problem is there are few desirable areas to live in this country when you consider things like education, amenities, crime, etc. I’m not so sure there’s a bubble in cacville, usa
 
winb83

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The price of housing is controlled to perpetually keep the typical home out of reach of affordability of the typical buyer. Now you can buy a dump in a ghetto or live in a trailer park to try and get around that but the desirable single family home will always be priced so the common worker can barely afford it. Anything less and tge division of classes wouldn't hold up.
 
Gritsngravy

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eugenics is not the answer
I don’t believe in this idea of overpopulation, the issue is certain entities have certain agendas and right now apparently the agenda isn’t in favor of making sure housing is cheaper, but best believe it’s possibly to make it cheaper they just don’t want to not because it’s too many people
 
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