“Just move somewhere cheaper! Abandon your lives, friends and careers and move to Topeka, Kansas where you still can’t afford a home without going into deep, long-standing debt”
Well just have to lower properly values, violently. :D
Zillow defines a starter home as one in the lowest third of home values in a given region.
I wondered what they meant, since to me it means something small, maybe 1k sqft in areas I’m familiar with, simple, 3 bed and 1 bath. Move up from there as needed. Some would call that small and for others it’s luxury, it’s relative. Also wages don’t keep up with the high real estate prices so that’s on the employers to pay more and need more public housing if builders won’t do it. Make the land available at little cost or spread over long terms like other places have done successfully. Oh the rich builders don’t want that so it won’t happen, see?
Edit: learn more with this question: How have some places used public land for small groceries and public housing and had long term lease or loans to make it easier?
1mil average is in a MHCOL- HCOL.
Zillow defines a starter home as one in the lowest third of home values in a given region. As of June, the typical starter home nationwide was worth $198,649, up 1.7% from a year earlier. But in well over 200 U.S. cities, starter home prices are a whopping five times as high as that.
Oh, is that the proof? I was still on the fence.
Bend the spikes with a hammer or throw a carpet over them. Ez
You can afford a fence??? Must be nice…
But who is buying? Also aren’t the industrialized countries shrinking in population? Why are prices going up then?
The population isn’t shrinking, the population growth is declining. We might see negative population growth at some point, but not yet.
Because a) people are moving into areas with less homes and b)the average square feet per person has been increasing for decades now.
So… too much demand overall in certain areas and that waaaay outpaced the population drop
Other than Japan, I don’t think populations are actually shrinking yet, at least not in at significant rates. Global population is still growing and people migrate into industrialized countries. On top of that you have migration inside those countries with people moving into big cities. So smaller cities are shrinking but bigger cities are growing, often at rates outpacing construction of new housing - thus causing huge price increases. Even in Japan, which lost about 1M people AFAIR (they don’t like immigrants) the prices are growing.
Isn’t Japan only seeing prices go up in cities, while rural areas are becoming very cheap?
UK here, seems like we are largely avoiding that so far. Tbh I would go for minimum wage in a rural area immediately if it had really cheap housing. But generally here it seems like the rural areas are quite expensive, large and lots of land. Towns are often the cheapest.
Post-industrial towns are probably the cheapest overall, along with some coastal ones.
Isn’t Japan only seeing prices go up in cities, while rural areas are becoming very cheap?
Yes but cities is were everyone is moving while rural areas emptying out. It doesn’t really help to have cheap housing where no one wants/can live. Same thing is happening in Spain. Lots of villages are loosing residents but Madrid or Barcelona are growing at rates far outpacing the construction of new housing.
Does make me wonder why the UK isn’t seeing the same sort of thing. London is really expensive but the rest largely isn’t getting much cheaper.
People like me. Have a 3% rate, rented out my house. Make money renting it. Bought a new primary at 6.5% interest. So I got my starter home and my probably for ever house 1.5 miles away from each other. I could sell my starter home for a 250k profit as my area is booming because of space x and subsidies of space x. Also oil is about to take off as well. Not enough homes and CA makes it hard as hell to build
They’re being traded like fucking bitcoin
Average age of first time home buyers is at 36 now (Up from 30 ten years ago). More than a quarter of them are over 40. About one-in-ten are buying entirely in cash from money they inherited when parents died.
Basically, the only people buying are people who got help from their parents. Otherwise, it’s all private equity and Mom-and-Pop landlords trying to build their little fiefdoms.
I will always feel pressured by those stats as i’d never be able to buy a home at 36. But i guess that average doesnt include people who never made it.
It’s an average. Some buyers are well into their 50s. I’m 39 and basically just waiting for my father to die so I can inherit his house.
Guilty. I got my condo at 43.
I’m only able to afford it because I took a huge gamble in March 2020, borrowed from my Roth 401k at work, and put a few thousand bucks in oil stocks which I was able to hold onto for a couple of years because I didn’t have any emergencies.
It wasn’t fuck you money, but it was life changing. Paid off my student loans and put the rest into a down payment on my home.
In the West, the decline in population is offset by immigration so there is always demand for housing but limited supply. I don’t know about South Korea, but in Japan, the houses really are affordable because of population decline.
Thats bullshit… immigrants simply cant afford such homes… the price increase is caused by demand shifts into specific areas… not immigrants
in Japan, the houses really are affordable because of population decline.
Isn’t that mostly in the rural areas only though? Because the old people are dying off and the younger ones are leaving to move to the cities.
greedflation
Jesus Christ, I just wish all of these DSA’s, starting next year, would hold every fucking piece of legislation hostage until the food, rent, and health care crises are addressed.
