Will housing ever be affordable again?

[Art Barr]

Since 2013 in an urban intellectual landscape. The general person has been priced out of housing.


Art Barr

 

[Shadow King]

I've always considered the cost of living when i move somewhere. I'm not afraid to make a decently long commute to work if i have to.
I have had jobs where i had to drive an hour to and from work in the past.
But yes for the most part i've lived in areas where the cost of living is below the national average.
My house looks similar to this and cost me 60K

775 a month mortgage.

I live in youngstown, a small city in ohio. about 10 minutes from downtown, and 15 minutes away from my job.
The house is also worth about 120K now versus the 60k purchase price. it was a a foreclosure and i had to invest about 20K fixing it up before i moved in.

And you've lived where before this?

 

[⠀X ⠀]

Nope. So you either better make a lot of money or find a woman to shack up with.

 

[MegaTronBomb!]

That's doom and gloom talk. 70k salary with $15K down will allow you to get something for $240K.

There are more than 3000 homes available in Houston alone that are within that price

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.

 

[WIA20XX]

 

[Wild self]

I'm on the belief that people do have to view housing as a place to live first and primarily... not as revenue generating asset.

But one of the uncomfortable truths is that the places that you can find affordable housing, are straight up places that people don't want to live.

Live in Sundown towns with zero infrastructure and zero jobs that pay above poverty level, cheap brehs.

 

[winb83]

so you're gonna be paying 5k a month to rent, from age 60 to 80? that's your plan?

My rent is $620 a month for about an 800 sqft 1 bedroom. There are people who live in condos who pay more than that in property taxes and association fees.

I also don't view a house I would live in as a real asset or wealth building tool. I just said a lot of people say I bought a house for $175K and sold it for $380K and they don't factor in all the money they put into that house when they owned it as any real cost. Yeah the house appreciated in value but that money you paid to upkeep and live in it was part of the cost of the home and you should subtract that from the proceeds from the sale.

Right now I'm comfortable renting. A realistic solid home in my area would have me go from $620 a month in rent to a $1400 mortgage payment about 2.3x my payment. The cost of my utilities would go up. I'd have to pay a water bill which I don't now. I'd have to maintain a yard. My renter's insurance is dirt cheap and home owners insurance wouldn't be. I could easily see just my housing cost 3x from buying a home.

Right now I take my take home pay and chop it in half. I save and invest half of it and live off the other half. I wouldn't say I'm very responsible with my money. I just live off half my means. That would end if I bought a home.

 

[winb83]

A house costs you money you're going to spend regardless... unless you plan on living out of your car

Or you can rent an apartment.

 

[Da King]

If you have money, it’s very affordable

 

[winb83]

That's doom and gloom talk. 70k salary with $15K down will allow you to get something for $240K.

There are more than 3000 homes available in Houston alone that are within that price

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.

 

[Mike Nasty]

My rent is $620 a month for about an 800 sqft 1 bedroom. There are people who live in condos who pay more than that in property taxes and association fees.

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

 

[The Wall Is Undefeated!]

'Will housing ever be affordable again?'

Only when supply outgrows demand. So either more homes have to be built or there's a population decrase.

 

[The BasedFather]

I need SoCal to come up off those prices

 

[Mike Nasty]

'Will housing ever be affordable again?'

Only when supply outgrows demand. So either more homes have to be built or there's a population decrease.

and that will never happen in the U.S.

 

[Forsaken]

Or you can rent an apartment.

Rents are high and rents can go up yearly.

We know how this is going to play out in the end. People will be stuck in their low interest homes upside down on their mortgages. Not an issue if you can afford it and plan on living in the house long term.