Housing costs

I'm curious how housing prices have changed in your local areas, vs median income growth, since Biden got elected. How much income growth would be needed to pay JUST for housing, vs what growth has occurred.

For reference we can use housing price should be income x 4. Some say it should be income x 3, but we can show some leniency.

So every 100k in price needs 25k in income growth.

a reply to: OccamsRazor04

Housing prices are sky high and everyone got their usual 2.5 to 3.5% annual raise.

It is always hard to gauge. House prices are hyper local. Most of the people buying I deal with are highly qualified even with inflated housing values. They also generally have not yet been affected by economic slow down, but that could change.

Prices of houses here in the U.P of michigan jumped up pretty much....They are not worth what they are selling them for, our wages are not overall very high here....and of course, there is mine dust all over houses and caving ground plus in most of the U.P the snow piles up a lot, we get lots of snow out here in the middle of two great lakes.

So where I live median home prices in Jan 2021 was ~300k, they are currently 370k, a 23% increase. That means you need $17,500 extra income. Median income rose about $2500.

Translation, people that could afford a house before now can't, or need to settle for a much smaller house or a much worse neighborhood. Or, they have to buy a house outside of what their budget should be, risking foreclosure.

I live in Tampa, FL...number 3 on fastest growing housing prices. I sold my house for 180k over what I paid for it in 2020. Took the money and moved to a lower cost area. Wages have not kept up, raises about 3-4%. But I will say this about wages, if you are good at what you do and have experience in the field you can promote faster than at any time in history.

Selling my farmland in Texas to developers. I can't refuse even though this land has been in my family for over 100 years.

My folks live in the panhandle of Florida. They bought their condo for less than 190K almost 8 years ago. Put almost 60K into it for basically a full remodel, its roughly 1500 Sqft. Their neighbor down the street just sold their nearly identical 1 level condo down the street for 600K and it wasn't as finished as my folks. They could turn a big profit but they like where they are at and unless they move to another state they aren't really gaining anything.

I like their place since it has nice amenities and is less tan 1/2 mile to their developments semi-private beach I just don't see how anyone would pay that much for these condos. At some point soon I think teh bubble is goignt o burst.

originally posted by: infolurker
a reply to: OccamsRazor04

Housing prices are sky high and everyone got their usual 2.5 to 3.5% annual raise.

2.2% here, at least for the long term staff.
Some of the people who move around a lot got as much as 16%, because nobody can really afford to lose the staff.

Not sure prices have changed much in the last year- but they are still sky high (I'm under contract... #!) but with interest rates up from 3.x to 5.x in the last year things are about to tank, hard.
Problem being, nobody who is living in a house will move because they can't afford to buy- so houses for sale will be few and far between in a few months.
The GOOD news is that if you have debt (and if you've purchased a house or even a car with a loan in the last five years, you've got plenty) the value of the US dollar is crashing so fast that as long as you can still GET a job in five years, your current debts won't take long to pay off.
The BAD news is that they know it, and are looking for a way around it. With captain dimented at the wheel they could just introduce a new currency and have him bless it, then switch over all your existing debt to the new currency- at an exchange rate that will leave you homeless, leading to the banks owning your property and you renting it from them by the hour.

my gut feeling is that we've lost control of the government, and the FED has been out of control for a century- so they're just going to keep screwing us until we do something about it

originally posted by: Edumakated
It is always hard to gauge. House prices are hyper local. Most of the people buying I deal with are highly qualified even with inflated housing values. They also generally have not yet been affected by economic slow down, but that could change.

Housing and land cost rising while inflation also rising.

No signs of slowing in either direction. The obvious conclusion is collapse but the unknown is how far it will fall.

With large investors hitting the single family market, it stands to reason that even if there is a recovery, buying a home for many will be a fantasy going forward.

The interest rates were record low to allow people to buy up the surplus housing, over the few years of low interest rates houses became harder to find. Covid hit and new house building basically stopped. Lumber prices shot up out of nowhere and then supplies followed. Now that the interest rates are up ticking, people who couldn’t buy quick enough, or find that perfect house now either have to cough up more money, stop looking, or keep renting.

I believe housing prices won’t drop like it did in 2008. I believe it will retain their current prices. Because looking at the big picture of inflation, government spending, fuel prices, lack of supplies, constant news of war in Ukraine, water wasting out west, it’s engineered for reasons I can’t figure out.

a reply to: JinMI

I just hope it waits 4-5 years, at that point I'll be a DNP (Dr nursing practice) and will buy up a bunch of properties cheap.

a reply to: OccamsRazor04

At this rate, even the higher salary you may be awarded from the work you put in would not be enough.

Its not just housing, its everything. Food, gas, etc.

a reply to: 38181

t’s engineered for reasons I can’t figure out.

Dependancy.

Thus the downfall of American farming and affordable rents for small businesses.
Pure and simple greed.

No comments.

a reply to: olaru12

a reply to: JinMI

Thats why I want a market crash in 4-5 years.

originally posted by: OccamsRazor04
So where I live median home prices in Jan 2021 was ~300k, they are currently 370k, a 23% increase. That means you need $17,500 extra income. Median income rose about $2500.

Translation, people that could afford a house before now can't, or need to settle for a much smaller house or a much worse neighborhood. Or, they have to buy a house outside of what their budget should be, risking foreclosure.

You will own nothing and be happy (brought to you by the World Economic Forum reptiles )

a reply to: OccamsRazor04

My wages have not changed...my rent however went up 150$ this year...

originally posted by: 38181
The interest rates were record low to allow people to buy up the surplus housing, over the few years of low interest rates houses became harder to find. Covid hit and new house building basically stopped. Lumber prices shot up out of nowhere and then supplies followed. Now that the interest rates are up ticking, people who couldn’t buy quick enough, or find that perfect house now either have to cough up more money, stop looking, or keep renting.

I believe housing prices won’t drop like it did in 2008. I believe it will retain their current prices. Because looking at the big picture of inflation, government spending, fuel prices, lack of supplies, constant news of war in Ukraine, water wasting out west, it’s engineered for reasons I can’t figure out.

The reasons should be obvious by now, total control of a docile population. Mind controlled by tech/'vaccines'/MSM who knows, and who will all be forced to leave in 'smart cities' . I read that they want to eliminate SFHs and private property rights

a reply to: RickyD

I usually get 3-5%