When you realize appreciation is just adjustment for inflation and that municipalities are more than happy to cash in on the grift by way of higher property tax.
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For most people, a rising RE market is the goal. Governments love it cause more tax money and more jobs which translates into more taxes. Most people in RE love it cause they make more money via commissions, wages etc. Homeowners (aka voters) love it cause they make more money. The only people who hate a rising RE Market are younger and poorer people who nobody really gives a rat’s ass about anyways.
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What happens when Atlas shrugs?
I don’t think anyone is comparing today to 2008 that has any education in the real estate market. The only similarity I see are overleveraged investors that are still buying at current prices. Those that stopped buying are fine bc appreciation totally surpassed their leverage the last few years.
Airbnb and institutional investors are a huge issue in many markets. Florida zoning laws are very lax and the population density reflects that. We 100% have issues of the former not the latter here.
Zoning laws are a huge issue in older/historic markets I 100% agree with that and have brought it up several times. They need to convert commercial areas to residential as well as allow sfr to covert to multifam (but nimbys)
Another huge issue is they don’t have the infrastructure with schools to support higher populations in many areas. Many schools in the northeast are bursting at the seams and funds have been mismanaged preventing them from building a new school.
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Where I live, the high school my 14 year old son attends was built in the early 1960s. The superintendent makes over $400K per year. It is a disgrace.
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I agree that airbnb and institutional investors are an issue in some specific markets but I don’t agree with it being a huge issue overall. Of course Florida is going to have issues with airbnbs, but a market like CT, PA, or NJ doesn’t. Institutions own 3% of the entire SFH stock, mostly in the sunbelt like TX,FL, and GA. Again, it sucks hard if you’re in those areas but it isn’t representative of the entire country.
IMO, the biggest reasons for high prices are high labor costs, high material costs, and government intervention regarding zoning and foreclosures. Builders and flippers are making 10-15% profit margins.
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3% of total inventory is a huge amount of housing. Airbnb is an issue in the tourist areas of any market, and those markets also need housing for year round residents too.
Miami Beach is having a major issue with finding employment as no one can afford to live here with the salaries they make. Same story in ocean city nj and many many more towns. Kids just aren’t picking up the slack and working at these places in the summer
I agree zoning could absolutely help that situation but it doesn’t seem to be a topic of discussion in any debate these days. Most elected officials in all areas are in the pockets of the developers and high pricing is what they push not affordable housing.
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The problem is that affordable housing makes no sense from a developer/builder perspective outside of legal stuff like “Mount Laurel Doctrine” which only affects NJ. The only difference between luxury and affordable is a tiny percentage of material costs. The land, legal work, labor, and everything else is the same.
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100% that’s why the douchbags and giant turds need to do something about it…they’re making record amounts of tax revenue with this latest round of inflation. Time to reinvest it back to our country, we need it desperately.
Sorry not trying to be political but this topic 100% overlaps into govt spending. And neither side is doing much so it’s a broad swipe at the entire system not one party
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No rebuild between 2019-2022?
Affordable works in states with cheap land and minimal regulatory barriers. In Texas they can churn out 2k sqft tract housing for below 100/sqft all day. There’s economy of scale when you build 200 of the exact same home.
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Negative. 400% + is across the board appreciation on most stuff here the last 4 years. Waterfront is still going up as most other stuff has leveled off. Theres 100s if not 1000s of examples of these changing hands every year at double the price previously paid. Eventually someone is gonna get stuck holding the bag…not sure when that’s gonna happen though as the wealthy keep getting wealthier. A south Florida waterfront home or condo is a must have for the elite of the world and there’s only so much supply
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Yep but the old cities have so many huge single family homes that need to be chopped into affordable condos/apartments. But civic associations just fight it tooth and nail. It’s not like they will be turned into section 8 unless the area is that type of housing. You’ll still have young professionals buying the condo with high incomes. So it’s not changing the demographic of the neighborhood like they’re so concerned about. Millennials and younger generations alaready are used to living in less space, we just need more units for them and that’s the only way.
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You’re not building and selling anything but Habitat for Humanity homes for $100/sqft in Texas these days anywhere near a city of note.
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I was thinking the same thing, but then found these two. No clue on what kind of neighborhood they’re in though.
Even then it’s not true affordable since most homebuyers want a luxury touch. It’s crazy how simple stuff like stone countertops and SS appliances are extremely appealing
Everyone says they want cheaper but no one is willing to compromise. You can’t live in Central Park south or Miami Beach or Beverly hills without being a millionaire.
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That’s like showing a customer the base model. Let’s see the finished product on an MLS listing after you add appliances, modifications and account for different trim finishes and materials.
If I’m buying new build I’m customizing and it wrapping it all up into the note.
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This is what I touched on earlier about the foreclosures in 2008 (at least in my area).
The long foreclosure process/shadow inventory kept inventory lower and price drops were not as extreme as they should have been. You could see by Jim’s chart in this thread how inventory trended downward after the 2008 crash.
With more qualified owners embedded with low rate loans, it’s going to really have to be World War 3 to see how that affects inventory/prices.
If you think SS is luxury you haven’t been in a luxury house in about a decade. Everything is “hidden” now