Will housing ever be affordable again?

[getmoney310cpt]

Nope

Its over

U already seeing a lot of corporations buying these homes and then charging hell of rent or even tearing down the ones in the hood..

My street in Inglewood is the last of black owned homes and families not selling ..

They trying to make Inglewood an extension of Culver City rent in Inglewood high af

 

[Shadow King]

I'm basing what I'm saying on things that have happened before. You know, history. After the depression, significant legislation was put in to reign in big business. That legislation has been systematically dismantled or made toothless by subsequent cuts in the budgets of departments like the FTC and the SEC. What I'm proposing is a return to a pattern of regulation that existed to prevent the kind of excesses we are seeing right now.

After WWII, millions of Americans were given the kind of support they needed to build the middle class and unions were powerful and protected in this country.


The FTC is current being run by a person who is pro consumer rights and wants to break up these companies. A political candidate(vivek) has mentioned Blackrock as a business that is too powerful and politicians like Bernie sanders have said multiple times that these businesses need to be regulated and broken up.

Lobbying is a new thing in American politics and was not happening in the 70s and earlier. You've failed to actually produce any counter argument based on any facts and you seem dedicated to just shutting down other people's ideas while not proposing better ones.

I'm not proposing better ones because again, none of that is gonna happen, and this isn't about "better". The country is obviously in a different place than the FDR presidency and post-WW2 boom.

Just because something happened before doesn't mean it's guaranteed or obligated to happen again. History doesn't matter when a society evolves outside of drawing parallels from one nation/empire to another. Nations don't cycle.

You're describing an everyday man's boom/peak of that era. That peak led to the ambition and greed that sired this new thing of lobbying. Pandora's box is open and for the power players the standard is now the standard. A return to FDR-esque regulation won't occur under this standard.

Again this is not an attack on your idea.

 

[Sly Cookin]

Deregulation helps business they said

 

[Amestafuu (Emeritus)]

Depopulate the earth brehs. Let the market free fall like in Japan. Funny thing is it'd happening regardless of if it is planned. Gen z now no longer wants conventional lives. Settling down and retiring and 65 all that. They barely can get out from under their parents. Not rushing to have kids.

No the house prices are not coming down without a crash. Break the fukking system. Let that shyt implode.

High living cost, resource scarcity? Make less humans. Have more resources. This era of civilization has peaked and we either correct it or get corrected. There's too many of us here... Harsh reality.

I see a population decline that will be conscious and subconscious that will plummet the market. Then eventually as resources become accessible again there will be boom in births and home purchases again. Maybe for your kids kids kids.

 

[OfTheCross]

That's because people have to keep a roof over their head. People have little to no savings and many of them use a credit card as an emergency fund. Their retirement savings is also anemic. Acquiring more debt is typically how they maintain.

Half of all homeowners already have their homes paid off.

Homeowner's, paid off or not have substantially higher net worths than renters.

It appears to me, these people are good with money and making the right decisions.

 

[thelonious21]

5k a month for a 40 year old home is saddening

I can't bring myself to do it..

 

[Turbulent]

Yes.

It will have to involve significant regulations on real estate investment trusts(REIT) and barriers on private equity firms to keep them from buying any property that is not used as a residence. In essence, companies will be kept out of buying homes.

A few big banks will also need partial ownership by government. If the government is a major shareholder and has veto power, it stops housing speculation dead in its tracks.

Elected officials will also have to be prohibited from trading stock and must have their assets put in a blind trust. They can only access their funds in the event of a personal emergency but otherwise they must live off the salary they make as an elected official which cannot exceed more than 1.5x the national average income.

Lobbying itself will have to be made expressly illegal, and cities will have access to federal funds for affordable housing if their zoning laws show a clear prioritization for housing as many people as possible.


We will get these reforms only after a gigantic war pops off or the tech bubble bursts and takes 2 or more big companies or VC firms down with it. The good(or bad depending on your perspective) news is that is going to happen in the next 15-30 years. If you can wait, you will get to spend your 40s 50s or 60s in your own home.

 

[god shamgod]

2 bedroom apartment in my building currently listed for 2200 & people coming thru daily asking about it that’s mortgage prices for a 2 bedroom apt

 

[winb83]

Half of all homeowners already have their homes paid off.

Homeowner's, paid off or not have substantially higher net worths than renters.

It appears to me, these people are good with money and making the right decisions.

More than half of the people who have their home paid off are retirement age. That doesn't reflect the current market conditions. If you as a baby boomer bought a home your mortgage was never even close to what a millennials' mortgage was because when you were a young adult homes were still affordable on an average wage. Instead of the average house costing $421K it was $60K or even less. Even with inflation you had the luxury or refinancing through the years on a modest price.

The housing market is historically unaffordable - but a record number of Americans now own their home without a mortgage

While 8% mortgage rates mean potential buyers are squeezed, the last decade saw a surge in people who own their homes outright.

finance.yahoo.com

Home ownership is a forced savings account. That and the fact that if you can buy a home financially you're better off than most renters to begin with. Obviously if you're forced to pay into equity on a home that will reflect in your net worth.

 

[OfTheCross]

More than half of the people who have their home paid off are retirement age. That doesn't reflect the current market conditions. If you as a baby boomer bought a home your mortgage was never even close to what a millennials' mortgage was because when you were a young adult homes were still affordable on an average wage. Instead of the average house costing $421K it was $60K or even less. Even with inflation you had the luxury or refinancing through the years on a modest price.

The housing market is historically unaffordable - but a record number of Americans now own their home without a mortgage

While 8% mortgage rates mean potential buyers are squeezed, the last decade saw a surge in people who own their homes outright.

finance.yahoo.com

Home ownership is a forced savings account. That and the fact that if you can buy a home financially you're better off than most renters to begin with. Obviously if you're forced to pay into equity on a home that will reflect in your net worth.

Bruh...all this doom and gloom talk is silly.


I don't disagree with you just the notion that you can't ppl can't buy homes. They're unwilling to buy what's out there, unwilling to settlez unwilling to relocate, etc. but there are homes that anyone can afford on the market.

 

[JadeB]

miami rent in the hood is $1800+

For a single room or a whole apartment?

 

[winb83]

Bruh...all this doom and gloom talk is silly.


I don't disagree with you just the notion that you can't ppl can't buy homes. They're unwilling to buy what's out there, unwilling to settlez unwilling to relocate, etc. but there are homes that anyone can afford on the market.

Again the average home cost 6x the median income. You can call it doom and gloom or whatever you want but home ownership is on average unaffordable for many people. If you making like $70K a year you can't afford a $421K home. Anything past half that price and you're struggling really. The gap between the typical wage and what the average home cost is growing and continues to grow and it doesn't seem like it will ever come back into alignment.

 

[Cakebatter]

Its mostly a zoning issue. Many zoning laws and regulations on construction were instituted to decrease the supply of housing, which artificially inflates the values of existing homes. The locations with enough space to expand (Suburbs) are made up mostly of single family homeowners who will not tolerate the possibility of diluting the value of existing homes or "Attracting the Riff-Raff". To me its silly as most home values are only unrealized gains. Unless you move to a place significantly cheaper, you end up selling high, only to buy high. Home ownership is simply a hedge against rent prices, not some long term wealth creation vehicle.

 

[thelonious21]

Its mostly a zoning issue. Many zoning laws and regulations on construction were instituted to decrease the supply of housing, which artificially inflates the values of existing homes. The locations with enough space to expand (Suburbs) are made up mostly of single family homeowners who will not tolerate the possibility of diluting the value of existing homes or "Attracting the Riff-Raff". To me its silly as most home values are only unrealized gains. Unless you move to a place significantly cheaper, you end up selling high, only to buy high. Home ownership is simply a hedge against rent prices, not some long term wealth creation vehicle.

That's the shyt..
Sell now make profit..
But live where? Typically unless it's a situation of an "Empty nest" you don't want to downgrade.

 

[Dipsey Doo]

My starter house has already gained a cool 15k in equity since I bought it last year. Bought it when interest rates were at 6.8, don't think rates are going down anytime soon.

Some of ya'll need to get off the sidelines and jump in the game. Housing is one of the easiest wealth vehicles and a hedge against inflation.