My salary didn’t change at all, but homes went up 82%. The money I saved for a down payment and my salary no longer are good enough for this home and many others. This ain’t even a “good” home either. It was a 200k meh average ok home before. Now it’s simply unaffordable
A 1200 sqft bungalow near me just sold for 1 million Canadian rubles
And in the past I would ask “Toronto or Vancouver?” But I know that that could be in any city these days.
Not Vancouver. Nothing that size would go less than 2 million until you hit Coquitlam. MAYBE.
Yeah, we are boned all over the nation.
For fun here are some places you can buy for $1 million https://www.realtor.ca/real-estate/27507233/161-moyle-drive-yellowknife
https://www.realtor.ca/real-estate/27587880/7077-quinpool-road-halifax-halifax
https://www.realtor.ca/real-estate/27532186/1132-osler-street-saskatoon-varsity-view
Yeah. I’m pretty much resigned to living in our rental until we get renovicted. No kids, double income, a lot of savings… but the mortgage payments would be way more than it’s worth to have a minor upgrade. Strata payments alone are often more than our rent!
Condo/HOA/Strata fees are a big way people are kept out of owning their own place. Its crazy that almost every place even remotely affordable is part of one.
I get the need for them, to pay for shared building services. Strata fees pay for exercise rooms, pools, grounds maintenance, whatever. I 100% am behind them, as long as the Strata council is responsive to needs and not corrupted, but there’s the rub.
I’d generally be happier with few services and low strata fees tho.
Y’all realize this is a bubble, right? I almost feel sorry for these investors, gonna have their ass handed to them in the coming decade.
The rental aspect isn’t a bubble. Until they start viciously taxing single-family home rental, home prices are going to stay high because they’re not being bought as homes but as assets for rent-seeking.
Shout out to !housing_bubble_2@lemmy.world
If Big Macs, houses, gas and college tuition all went up, it’s time to realize these are not all in bubbles and instead realize due to inflation your salary has been halved.
No true! Plebs got 12% raises over last few years ans even for one quarter outpaced inflation 🤡
It depends on the area. Some places are actually gowning that fast in population
Y’all realize this is a bubble, right?
Can you explain why you feel that way?
I feel sorry for any one whose bought a house over the last couple years.
I don’t, it’s strictly better than renting
Is it though? My understanding is it’s more complicated than “simply better”. You need to account for property tax, home repairs, lack of mobility, housing market, etc.
It’s more along the lines of “buying is generally better than renting, but there are about 100 different factors to consider.”
The main downside is you have to pay closing costs to move. That means you should plan to stay in the home at least a handful of years or else you’d lose money likely. But with the market the way it is, get a house ASAP cause its going up like a roller coaster.
I bought mine 5 years ago and its gone up 50% in value since then.
There are advantages I’m not actually culpable for all of the maintenance of my property my actual rent right now is just about on par with anybody who is going to be paying to purchase their house and granted I’m not actually gaining anything as far as property value I also didn’t have to come up with a down payment or jump through hoops and try and get the house in the first place and very safe in my position and I’m very capable at this point after having lived here for many years landlord hasn’t asked for a new lease in the last couple years so I could actually walk away at any moment… there are benefits but they’re few
Bought a house 5 years ago. Cheaper than renting and equity says I made 100k. It’s good.
It’s just lame how expensive they are now. BTW, they were to expensive 5 years ago too.
Not really. The system will instead keep finding ways to get people to rent at higher prices or take out low down payment loans with ever larger monthly payments taking a lot more of take home salaries and making it harder than ever to save and invest.
House down the st was 94k in 2015, it sold for 195500 last year.
Bought our cottage for 50k at the peak of the rural movement in 2020 after it had been on the market for months, just sold it while the second property market has completely crashed for 130k after putting 10k in it and cleaning the fuck out of the lot (the place was disgusting, I’m talking 90 industrial garbage bags of crap, mostly beer bottles, a couple tons of wood and concrete and so on)…
Sometimes you’re just lucky and people don’t want to do what’s required to get what their property is worth!
What I’m hearing is that houses have the ability to be a great investment.
Work to get a house and then when you are old and ready to retire you sell and then have a great retirement.
Where tf do you live then? You’re just gonna need to buy another home
You downsize to a small apartment for older folks.
Those cost more than a house! The one my friends dad lived in where it was all in the same building and the staff was there just in case you fell was 4k a month.
It depends on where you go. You probably don’t need much in terms of space and features.
…until you realize that you still need a place to live after retirement, and any house you’re buying will have the same average increase across the board.
I’m talking much later in life when some of the basic things become a little harder but still doable. You move into an apartment that is for older folks.
Houses in my neighborhood are up 150-200%.
Also here in Europe this is the type of construction we use for a garden shed, not a house.
Even when we do modern timber frame, it’s generally still brick or block at the bottom. How long do these houses last in the US? I imagine a lot of the continent is pretty humid
It’s a good thing you aren’t a building engineer.
My parents’ timber house is from the 1780s and is still solid. So, 240 years at least, give or take. I’m aware of plenty of timber houses from the 1600s that are still standing and functional as well.
Is a timber frame house from back then the same as one built post 1950 though? Some Q’s:
- Have materials/practices decreased in quality?
- Has there been a shift from a sense of pride in craft and duty to build well towards cutting corners and saving $?
- Has the density and properties of wood changed as we use smaller trees grown more quickly in monocultures compared to old-growth harvested lumber of pre 1900s?
Timber frames are sheathed in treated plywood and then wrapped in siding. Rain doesn’t reach the wood of a barely-maintained house, exterior humidity won’t do damage in any hurry, and wood is rarely making ground contact. These houses last at least a hundred years given that this style is approaching 100 years. It’s usually storm damage through the roof that causes the rotted wood you’re imagining, not normal wear and tear.
When wood is properly sealed up in walls, it lasts a very long time. We don’t really have buildings on an old world timescale, but we do still have colonial wood frame buildings.
In California at least, houses made with a wooden frame are usually on top of concrete (either a concrete slab under the whole house, or a concrete perimeter under the exterior walls), and the frame is bolted into the concrete along the entire perimeter.
Older homes often aren’t bolted into the concrete, but it’s common to retrofit this to improve earthquake resistance. Without the bolting, the house can move around during an earthquake. The government here has a program (Earthquake Brace and Bolt) where they cover part of the cost of doing this work.
Masonry (houses made of bricks, stone, etc) are much less common here, since they perform much worse in earthquakes.
The answer is to go somewhere cheaper. If you go far enough out of town the prices will go down.
Plus when the town grows your property value will go up and up.
The answer is to go somewhere cheaper. If you go far enough out of town the prices will go down.
So basically, somewhere no one wants to live because of distasters, is boring AF, no jobs there.
If it’s boring, then so are you. There’s plenty to do in the country, just not much that involves “going to crowded places and spending ridiculous amounts of money on things that would be 20x cheaper at a regular store”
No argument on anything else though…
You’ve never been to a rural area of the country, have you? I traveled to Idaho recently and good fuck was it boring. Hiking is fun for a few days, but then there’s 20 degree weather, snow, ice, hail, poor Internet that’s basically DSL so you can’t play any games or access the Internet. People live within 50 miles of cities for their own sanity
ve never been to a rural area of the country, have you?
I’ve lived in them almost exclusively.
Most jobs are located within urban areas and people life around their jobs.
Yes, that’s why I have no arguments against the “no jobs” part.
Yep, everyone who lives in the less populated areas is miserable and bored constantly. Those poor people, so sad. They should be more like you.
Kind of yes. However if you want home ownership at a reasonable cost that’s the way to go. It doesn’t need to be in the middle of no where but it doesn’t need to be in the upper tier locations.
This is a boomer logic…
- You are going out so far out that commute arouns trip will start @ 2 hours
- Both people must have reliable vehicles, cost of whivh also spiked. Whats total cost for a reliable vehicle now?
Congrats, you are living a miserable life with mortgage, 2 car notes and commute that destroys your health.
Played yourself really.
Yes this thinking really underestimates the cost of driving and devalues your time.
And as you mentioned, long commutes are uniquely unhealthy.
Time to eat the rich
Best hurry … Ozempic is destroying the calorie benefit
No rich person is living in a 325k ranch house.
My man let me introduce you to globalism and people living in refugee camps in South Sudan.
$325K is more money than most of the people in the world for all of history would see in a lifetime.
Wake up to your riches.
If the house hasn’t changed, then the value is basically the same.
The price change is more about how rapidly the USD is devaluing.
Between 2020 and 2024 there was about 22% inflation. 1.22x$195,400=$238,388. So there’s still over $110,000 of price inflation to account for past devaluation of the dollar.
there was about 22% inflation
I’m not disagreeing with you, but I just wanted to note that inflation numbers (more specifically, the CPI) is an average across multiple industries - supermarkets, rent/mortgage, furniture, cars, flights, health care, and several more. It’s possible for inflation to affect some industries much more than others and I wouldn’t expect everything to all go up at the same rate.
mine is now worth 130% of its original value
A lot of boomers are going to die in the next ten years or so. That is the biggest age demographic in the u.s. the population is going to shrink by a lot. That’s why there’s a push to make people have more kids, because otherwise workers and consumers have a lot more power.
Private equity is already gobbling up the houses. Boomers are cashing in to finance extravagant retirement. Those who are not, are leaving it to their children who will then sell to private equity groups.
Eventually supply will catch up with demand which will supress rent (if we do something about the price fixing) and it will no longer be a viable investment. They’re probably losing a lot to management costs and capital expenses already.
Where I am it’s more profitable to let it sit empty and make a Tax write of than lowering the asking rent.
Not exactly a good business strategy. You can deduct the taxes, insurance, management costs, but you have to amoratize depreciation of the building over 28 years. Not to mention that an empty house is going to start developing problems fairly quickly.
Single-family rental is also a huge thing now.
I work in municipal development, and since 2021, 100% of single-family subdivision developments that have approached the city have been for rental-only neighborhoods.
And they want to put all the homes on a single shared commercial water meter on a single piece of property instead of extending public lines, so they can’t even be converted later without massive infrastructure projects and replatting.
Eventually supply will catch up with demand
Not if NIMBYs have their way. We have a MASSIVE supply problem already, and it’s getting worse.
if we do something about the price fixing
Narrator voice: they didnt
Yep, that’s on track! My house has almost tripled in price since I bought it 12 years ago. Denver metro. No way I could afford it if I had to buy it today.
So occasionally I look out of curiosity and the reason is pretty plain.
I look for houses for sale in a suburban area as public listings, and there’s like 1 within a few square miles of the area.
I switch over to renting, and there’s like 12 houses just like the one for sale available, all owned by companies. I also know a coule that aren’t listed that have no tenants, but are still owned by one of those companies. You can tell because those yards are now waist deep grasses (in an area where HOA throws a hissy fit if your yard looks just a smidge unkempt).
Don’t know why the companies find it more profitable to buy houses people aren’t looking to actually move into, at least at the rent they are willing to accept. If I fully understood why, it might just piss me off more. Like maybe the houses work better as a loan basis than other assets, so even empty and unused they are valuable as some sort of financial trick.
Don’t know why the companies find it more profitable to buy houses people aren’t looking to actually move into, at least at the rent they are willing to accept. If I fully understood why, it might just piss me off more. Like maybe the houses work better as a loan basis than other assets, so even empty and unused they are valuable as some sort of financial trick.
That’s one thing, but housing has been a low-risk investment for a long, long time. If they bought the house OP posted in 2020 and sold it in 2024 they would have almost doubled their money even without renting it out.
Keep in mind that inflation has risen over 30% in just the last 4 years, which explains at least part of the rise in prices. I wouldn’t be surprised if inflation is even higher in certain areas of the country. I’d also not be surprised if Georgia is getting a lot of natural disaster refugees from places like Florida.
The other part i don’t see anyone mentioning is that this was all projected as a result of millennial generation, the largest % of population by generation comparison, came into the age of buying homes. Creating a sharp spike in demand over supply.
This is because venture capitalists are buying all the homes to rent
Said it before: no corporation except non-profits focusing on housing should own retail property.
I like the utility feed hanging off the front of the house going straight through the roof and blocking them from installing the other fake shutter. I wonder what other construction horrors lurk inside.
