Will housing ever be affordable again?

[badboys11]

Corporations are buying single family homes and turning every room in the house except kitchen, dining and bathrooms into rentals

Population in America has jumped from 225 million to 350 million in my lifetime

These people need to live somewhere

Supply and demand says these prices never go down unless the population goes down

 

[King Poetic]

The thing is, these people don't want to look at what they can afford and what they can do to add amenities to...it's only what's out of reach.

in their mind, anything under 3000 sqft. w/ 3-5 Bdr is out of the question....also, most of these people complaining don't have families, kids or any type of pressing need for that type of housing...it's more to argue the topic.

Agree

Like u said earlier there are homes in areas(hood or average at best neighborhoods)that are price ok, but people mindset today is all about moving 15/20 minutes from those areas where prices are ridiculous

 

[CrimsonTider]

There also has to be infrastructure in place to support a massive influx of people to different areas.

Jobs, recreational activities, public transportation etc

There are clear examples of cities being overwhelmed when remote workers changed locations during the pandemic

There are plenty of affordable houses in neighborhoods or areas that people that are currently paying 2,500 for a apartment in downtown or Rich suburb don’t want to move to and complain that the houses in where they’re renting are unaffordable

Boomers and gen x bought foreclosures and homes in decent to just ok neighborhoods

There are plenty of houses under 300k that are available

 

[the bossman]

There are plenty of affordable houses in neighborhoods or areas that people that are currently paying 2,500 for a apartment in downtown or Rich suburb don’t want to move to and complain that the houses in where they’re renting are unaffordable

Boomers and gen x bought foreclosures and homes in decent to just ok neighborhoods

There are plenty of houses under 300k that are available

‘Sticker Shock’: New Homes Under $300K Are Disappearing Quickly

You can blame rising mortgage rates and construction costs.

money.com

It’s getting more and more difficult to find an affordable new home.

Only 14% of new construction home sales last month had price tags under $300,000, according to data released Tuesday by the U.S. Census Bureau.

For the sake of comparison, in March of 2021, 34% of new home sales went for less than $300,000. The picture was even bleaker at the $200,000 threshold: just 1% of new homes sold in March 2022 went for less than that, compared to 2% the year before.

 

[CrimsonTider]

‘Sticker Shock’: New Homes Under $300K Are Disappearing Quickly

You can blame rising mortgage rates and construction costs.

money.com

I’m not talking about new construction

 

[the bossman]

the only thing that would help would be to increase the supply of housing. we have waaaayyyy more people here in the united states than we did even in 2010. in 2010, there were only 308M people here and now we have 331M people here in 2024. there hasn't been any significant increase in the amount of available housing, yet there are way more people. I don't see housing becoming affordable until there's a drastic increase in supply.

If it's one thing that NIMBYs will never allow, it's building new housing around them.

When the economy collapses and people lose jobs en masse it will (Like COVID caused)

But it'll gradually go back up again, there will only be moments of affordability in the wake of a crisis.

"when the economy collapses, when the housing market crashes"

This has been on repeat every year since 2020.

 

[BaggerofTea]

the plebes were meant for serfdom

 

[UpNext]

The HOA fees in CA are fukking ridiculous. I showed a client 3 condos yesterday and the HOA fees were $500 to $600 by themselves lmao. It’s an investment property so I could still make numbers work.

The only homes I get for sellers are from probate and I have cash buyers. The rates aren’t expected to get back to 5% until 2025 and then there will be so much demand for those properties the prices will stay high. I have a 3.4% rate for my house. I’m never selling that shyt lol.

Man I'll never forget buying a condo in Chicago was like


150k for 1 bedroom 800sq ft with lake views


1200 / month HOA

 

[OfTheCross]

And you'd be paying about $2000 in mortgage payments at a 7% interest rate. That's basically 44% of your take home pay after taxes just for just the mortgage payment. That's not sustainable long term. You shouldn't really be paying more than 25-30% of your take home pay on housing. Your down payment ideally would be 3X what you talking about putting down. Hence you see the problem. If you making $70K a year where the fukk you gonna get damn near $50K in funds to put down on a house? On top of that a 6 month emergency fund and closing cost. How you gonna furnish that house? It would take you close to a decade to save up a 20% down payment, a 6 month emergency fund, and money to furnish that home.

Your solution to unaffordable housing is to put less down on a house, pay PMI, and have a higher monthly payment to someone that can't afford that.

You out here talking like it's cheap to rent.

Either way you're spending the money

 

[AAKing23]

If it's one thing that NIMBYs will never allow, it's building new housing around them.


"when the economy collapses, when the housing market crashes"

This has been on repeat every year since 2020.

I'm just answering the question, I didn't say a crash is coming

The economy would need to collapse to the point where a good amount of people can no longer afford their mortgages

 

[winb83]

You're going to be paying that to your landlord until you die, think about that for a second. It's not like it cuts off when you retire. He's also going to pass the increase in cost of living directly to you as well as raise your rent whenever he feels like it

If I can continue to build a portfolio of stocks over the next few decades my assets will pay that rent for me if I decide to go that route. My concern wouldn't be paying for rent for life it would be could I build up enough dividend income so it could pay my rent.

Old people end up moving into Condos and paying association fees anyway.

 

[MegaTronBomb!]

Corporations are buying single family homes and turning every room in the house except kitchen, dining and bathrooms into rentals

Population in America has jumped from 225 million to 350 million in my lifetime

These people need to live somewhere

Supply and demand says these prices never go down unless the population goes down

So, about this.

the reality is that housing for profit is what drives these prices...not scarcity of available housing in relation to population increase.


NIMBYism aside, housing projects initiatives and rent rollbacks/control would solve the problem of unchecked inflation.


One of the biggest things we don't see enough pushback on, is why we've accepted arbitrary yearly increases in rent...and developers artificially inflating housing prices with new developments and the consequences of what it does to surrounding areas.

 

[Mike Nasty]

Old people end up moving into Condos and paying association fees anyway.

Old people sell their homes and then end up moving into Condos..........

 

[Orange cream shake]

My honest opinion. Even with the increase of delinquencies and increases in foreclosures. it may be years before homes And mortgages go back to pre pandemic affordability.

 

[Dzali OG]

Yall better go join the military.

I live in a new housing community, homes 400k. Just opened last year in August. Every house (around 70-90) is sold and/or occupied, and they're building more. Sold signs in front yards within weeks.

All or say 95% of the owners are military or veterans. That VA loan is a cheat sheet .