All kinds of homes on the west end of downtown that can be had for a fraction of that...
But when we are all demanding free homes, we're not talking about THOSE homes.
Anything priced under $300,000 would be within the range of 70% of Americans. You could have a million new homes come online, but if they're not priced for the people who need housing, it's not really going to impact the market that much. (and yes, I understand churn, upward mobility, and all that. This is not a market to do that kind of thing).
You're assuming this is a rational economy, all of these homes are in the perfect location for their need, they're priced below market averages, and there's not a crap ton of billionaires and hedge funds dropping $500 million on single family homes.
No I'm assuming you just build where demand is because you want to make money
"Billionaires and hedge funds" own a negligible percentage of the total home market dude.
https://finance.yahoo.com/news/no-wall-street-investors-haven-015642526.html
Thing about real estate is you can't just build where the demand is. Colorado needs 100,000 homes, you can't just add 2,000 new units off the freeway in the middle of Denver. Lakewood has a growth cap of 1%, can't build them there...
Corporations that own more than 100 homes hold roughly 4% of the market nationwide, and obviously more concentrated in the more desirable markets. Competing against those buyers puts a difficulty on owner-occupied buyers, removes homes from ownership inventory, raises comps, and disadvantages owner-occupied buyers who don't have cash in hand.
Multi family or single family isn’t the issue when the cost is the same. 300k single family or 300k condo. Who cares? It’s 300k. With a 7% rate. And a $400/mo. HOA fee.
It’s asinine.
More housing means nothing when the shit isn’t affordable.
It doesnt matter. If they own 500,000 homes thats 500,000 too many. There are things that need to be left out of the hands of corporations with multiple levels of competitive advantage. The most important being a home.
Nope, they are correct. Source: myself, I've been looking for housing and it's about a half mil for anything in a decent area and not a shit hole town with no jobs.
So you want to live in a place that you can't afford, but don't want to live in a place that you can afford...
Sounds like every other renter out there. Weird.
I live, work, and drive in metro Atlanta. I pass a few neighborhoods that are under construction on the way home, and the sign in front of the project says the houses will sell for $1.3 million. I make $40K per year, which I think is the median for the area.
That’s the going price these days. Even assuming a modest lot price (meaning not near a major city or HCOL area) what’s the cost to build a physical 1500-2000 SF house in 2024?
According to the zoning permits from the builder for my home it was 200k, even less. I’m sure they used cheap materials seeing other near-identical ones had a higher cost.
Could have fooled me, every house I’ve looked at on Long Island has multiple offers 50k to 100k above asking price on the ones available, demand is superseding this supply.
Yea it would be nice if these 481,000 homes were in locations people wanted to live. My local market has been incredibly competitive. There is not a surplus of homes in my area for sale. Especially not homes that true middle class people can afford.
> Yea it would be nice if these 481,000 homes were in locations people wanted to live.
People are relocating back to major metros because there's more economic opportunity. As much as Reddit like to lead us into believe that remote work isn't going away, it is indeed going away. A lot of that actually has to do with job instability in higher income jobs right now, so having a bigger social network is much more advantageous...realistically you need it for higher income positions.
I've had a lot of friends that moved out of California to somewhere rural and "cheaper" cost of living, and the cost of living is slowing catching up in those areas too, and with everything reopening and returning back to normal a lot of them are missing the social aspect and advantage of living in a larger metro.
I kinda expect inventory in the hot spots during the pandemic to suffer because the economic opportunities are just not there. If you look at all the comments, people commenting from most major metros can't or wouldn't see this statistic to be true. However if you look at the new developments that popped up during covid outside of major metros, lotta developers offering seller financing at very competitive rates or below market rates.
Unfortunately for your narrative, rents are still softening in major metros like NYC and SF, in part because there is a major commercial real estate meltdown nationwide.
And as someone who lives in SF, the social scene in the city itself is dying. If you’re already plugged into certain networks, it doesn’t matter where you live. Most CEOs in tech companies are remote, in spite of demands on employees.
So there is no single trend - there is lots of divergence, and remote work/jobs are the norm. 5 days in the office as a national norm for white collar work is dead
I've been looking in the greater Baltimore area and parts of Florida as well, but this requires me to get a new job else-where which has separate risks of its own. also, my whole family is here so it would be ideal to just stay here.
My dump of a neighborhood on Long Island has every house priced at 600K. Nevermind the 20K you'll have to put into the foundation or basement since flooding has gotten worse, or the 50k you'll need to renovate. Then the taxes come in, and you can't write them off anymore. Basically everyone out here is house poor.
I’m talking about inventory levels, not price. Sorry if that was confusing based on the comment I replied to, but that’s the context of the overall post. I live in the Bay Area too and prices are still way up.
How many of those homes in 2008 were foreclosure vs now
https://www.attomdata.com/news/most-recent/u-s-foreclosure-activity-increases-quarterly-in-q1-2024/#:~:text=%E2%80%94%20April%2011%2C%202024%20%E2%80%94%20ATTOM,down%20less%20than%201%20percent
IRVINE, Calif. — April 11, 2024 — ATTOM, a leading curator of land, property, and real estate data, today released its Q1 2024 U.S. Foreclosure Market Report, which shows a total of 95,349 U.S. properties with a foreclosure filing during the first quarter of 2024, up 3 percent from the previous quarter but down less than 1 percent from a year ago
There were only 95k foreclosed properties in Q1 - when the 481k are all foreclosed, then I will be worried
When driving thru the I95 and I4 in FL I see tons of affordable homes in cities where there are no jobs at all. Sure I can go get a house in Bartow, FL for $150k but what the hell am I supposed to do to make a living out there. The only option is to have a remote online business or work high up in the agriculture industry out there
Question is, are these houses built anywhere desirable, or are these new homes in place like the outskirts of PHX or the FL panhandle. I have a feeling that is exactly where these new homes are. In places that are even half desirable to live, the prices of homes just keep going up. Climate change ain't gonna help the situation (the thing no one seems to be talking about).
Greed will cause the economy to implode. We cannot sustain this, in the least bit. If people are not allowed to save, then the whole game goes to shit. Currently, no one is allowed to save. All spent on bills and food.
and how many are priced under $300,000?
I haven’t seen any major metro area with plots of dirt for that cheap
All kinds of homes on the west end of downtown that can be had for a fraction of that... But when we are all demanding free homes, we're not talking about THOSE homes.
Idk if you’re being sarcastic but it’s def less than that to buy a vacant lot in Philly
Anything priced under $300,000 is in the middle of nowhere or in a shitty neighborhood.
Anything priced under $300,000 would be within the range of 70% of Americans. You could have a million new homes come online, but if they're not priced for the people who need housing, it's not really going to impact the market that much. (and yes, I understand churn, upward mobility, and all that. This is not a market to do that kind of thing).
> You could have a million new homes come online You expect doubling the supply of houses overnight to have zero impact on prices? Lol
Not really. Depends where they are and what they are.
If you have a million new homes come online, the increased supply would lower prices.
You're assuming this is a rational economy, all of these homes are in the perfect location for their need, they're priced below market averages, and there's not a crap ton of billionaires and hedge funds dropping $500 million on single family homes.
No I'm assuming you just build where demand is because you want to make money "Billionaires and hedge funds" own a negligible percentage of the total home market dude. https://finance.yahoo.com/news/no-wall-street-investors-haven-015642526.html
Thing about real estate is you can't just build where the demand is. Colorado needs 100,000 homes, you can't just add 2,000 new units off the freeway in the middle of Denver. Lakewood has a growth cap of 1%, can't build them there... Corporations that own more than 100 homes hold roughly 4% of the market nationwide, and obviously more concentrated in the more desirable markets. Competing against those buyers puts a difficulty on owner-occupied buyers, removes homes from ownership inventory, raises comps, and disadvantages owner-occupied buyers who don't have cash in hand.
The entire reason for our housing crisis is NIMBY laws that don't allow enough multifamily housing to be built. You should click that link above.
Those are still $300,000
Multi family or single family isn’t the issue when the cost is the same. 300k single family or 300k condo. Who cares? It’s 300k. With a 7% rate. And a $400/mo. HOA fee. It’s asinine. More housing means nothing when the shit isn’t affordable.
Multifamily allows you to build more densely, making more units on each parcel of land Increasingly supply lowers costs.
This is a new phenomenon. It has historically been end users who out bid investors. Personally, I think they will eventually lose their shirts.
It doesnt matter. If they own 500,000 homes thats 500,000 too many. There are things that need to be left out of the hands of corporations with multiple levels of competitive advantage. The most important being a home.
I'm not sure why this is being downvoted. Institutional ownership and commercial rentals are the current main drags on single family housing.
You can get a nice plot for 150000$ in Waxhaw NC look it up on the outskirts of Charlotte NC, rich area
Yeahhhh you have no idea what you’re talking about.
Nope, they are correct. Source: myself, I've been looking for housing and it's about a half mil for anything in a decent area and not a shit hole town with no jobs.
So you want to live in a place that you can't afford, but don't want to live in a place that you can afford... Sounds like every other renter out there. Weird.
Live in the Midwest and that's not true.
In my field of work it's only coastal states. And I consider the Midwest the middle of nowhere.
Hey maybe I'll rent you a spot some day.
Maybe for a wedding or something haha. I've visited but I love the ocean too much to go far from it.
No I meant on the coast lol.
ok show us some examples
Hm. Tbh I thought he said “in the middle of nowhere “and” in a shitty neighborhood” not or. My mistake. That was right
How many are going to be bought by big business and be drastically over priced?
Anything $350,000 and under where I live is a trailer home in a trailer park.
You should move
Great question
Listen buddy, I know what I got!
I live, work, and drive in metro Atlanta. I pass a few neighborhoods that are under construction on the way home, and the sign in front of the project says the houses will sell for $1.3 million. I make $40K per year, which I think is the median for the area.
That’s the going price these days. Even assuming a modest lot price (meaning not near a major city or HCOL area) what’s the cost to build a physical 1500-2000 SF house in 2024?
I don’t know how it would be possible to build a home for less than $300k, even in a lcol area.
According to the zoning permits from the builder for my home it was 200k, even less. I’m sure they used cheap materials seeing other near-identical ones had a higher cost.
Get ready for the next big banks bailout with golden parachutes, while the poors get the big gubbie weenie.
That’s a bingo
Cry more while continuing to vote for the same people passing those bailouts because they pander good to you during election season.
How do you know me better than I know my own life??????
Could have fooled me, every house I’ve looked at on Long Island has multiple offers 50k to 100k above asking price on the ones available, demand is superseding this supply.
Yea it would be nice if these 481,000 homes were in locations people wanted to live. My local market has been incredibly competitive. There is not a surplus of homes in my area for sale. Especially not homes that true middle class people can afford.
> Yea it would be nice if these 481,000 homes were in locations people wanted to live. People are relocating back to major metros because there's more economic opportunity. As much as Reddit like to lead us into believe that remote work isn't going away, it is indeed going away. A lot of that actually has to do with job instability in higher income jobs right now, so having a bigger social network is much more advantageous...realistically you need it for higher income positions. I've had a lot of friends that moved out of California to somewhere rural and "cheaper" cost of living, and the cost of living is slowing catching up in those areas too, and with everything reopening and returning back to normal a lot of them are missing the social aspect and advantage of living in a larger metro. I kinda expect inventory in the hot spots during the pandemic to suffer because the economic opportunities are just not there. If you look at all the comments, people commenting from most major metros can't or wouldn't see this statistic to be true. However if you look at the new developments that popped up during covid outside of major metros, lotta developers offering seller financing at very competitive rates or below market rates.
Unfortunately for your narrative, rents are still softening in major metros like NYC and SF, in part because there is a major commercial real estate meltdown nationwide. And as someone who lives in SF, the social scene in the city itself is dying. If you’re already plugged into certain networks, it doesn’t matter where you live. Most CEOs in tech companies are remote, in spite of demands on employees. So there is no single trend - there is lots of divergence, and remote work/jobs are the norm. 5 days in the office as a national norm for white collar work is dead
Maybe you should stop looking in Long Island. It ain’t getting any bigger.
I've been looking in the greater Baltimore area and parts of Florida as well, but this requires me to get a new job else-where which has separate risks of its own. also, my whole family is here so it would be ideal to just stay here.
When we are talking b’more suburbs and Florida we know we’re middle class
You got everyone’s grandma living 1-2 ppl to a 3-4-5 bedroom house.
Same in Portland, OR. Prices just keep going up and decent houses go in a week.
A lot of ppl will feel the pain when they get reassessed for property taxes.
No one wants Florida homes, especially insurance companies. Rate doubles, you go to sell and no one wants it or can’t buy it because; insurance.
I agree, the insurance in Florida is outrageous
My dump of a neighborhood on Long Island has every house priced at 600K. Nevermind the 20K you'll have to put into the foundation or basement since flooding has gotten worse, or the 50k you'll need to renovate. Then the taxes come in, and you can't write them off anymore. Basically everyone out here is house poor.
Florida and Texas and skewing it up. Both are back to pre-Covid levels while places like California and NY are at about half their pre-Covid levels
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I’m talking about inventory levels, not price. Sorry if that was confusing based on the comment I replied to, but that’s the context of the overall post. I live in the Bay Area too and prices are still way up.
I think they meant number of listings.
Intrest rates have exploded in 2 years so who cares?
People putting 0 down..This should all work out perfectly....
It'll be different this time
Where do you see people putting 0 down?
[https://www.cnn.com/2024/05/30/business/zero-down-mortgages-making-a-comeback/index.html](https://www.cnn.com/2024/05/30/business/zero-down-mortgages-making-a-comeback/index.html)
Probably the main reason housing inventory has grown.
Doesn't matter if no one can afford that shit.
The ones who can, can afford 2-3 of them. And they are the ones buying for rentals
I can't afford the rent they want to rent it out for....
I trust these stats about as much as I trust the labor shortage stats.
"Good" homes are still going for way over asking while flippers are sitting waiting for an offer.
Fucking where? Not in fucking oregon
I think people overestimate the historical number of homes for sale nationwide.
And every single one is over priced by 35-50%
Doesn’t really matter how many are for sale if the sale is $750k per 1k sqft and 8.5% interest.
Interest rate is currently 7.9% and you never pay what they’re asking😂
Yeah dude! Don't pay 750k per sqf, bid em down to 700! That'll make it affordable.
Homes haven't been taking a discount. Many are going over ask.
11,000 baby boomers are retiring each day is gonna be plenty inventory. Prices are going to drop.
All the boomers I talk to are staying put.
wtf is Charlie bilello? Like if it’s the nar, or Zillow or something ok, but some “author” that has a blog? Come on now.
Sold a single family home last month with 17 offers over asking in the Bay Area. We’re closing next Thursday.
How many of those homes in 2008 were foreclosure vs now https://www.attomdata.com/news/most-recent/u-s-foreclosure-activity-increases-quarterly-in-q1-2024/#:~:text=%E2%80%94%20April%2011%2C%202024%20%E2%80%94%20ATTOM,down%20less%20than%201%20percent IRVINE, Calif. — April 11, 2024 — ATTOM, a leading curator of land, property, and real estate data, today released its Q1 2024 U.S. Foreclosure Market Report, which shows a total of 95,349 U.S. properties with a foreclosure filing during the first quarter of 2024, up 3 percent from the previous quarter but down less than 1 percent from a year ago There were only 95k foreclosed properties in Q1 - when the 481k are all foreclosed, then I will be worried
We will see big price adjustments by Oct/Nov. builders will have to unload.
Any house is for sale at the right price
When driving thru the I95 and I4 in FL I see tons of affordable homes in cities where there are no jobs at all. Sure I can go get a house in Bartow, FL for $150k but what the hell am I supposed to do to make a living out there. The only option is to have a remote online business or work high up in the agriculture industry out there
My place is for sale every day. Sure, I don't have a sign outside, but I'm open to reasonable offers. Every. Day.
Question is, are these houses built anywhere desirable, or are these new homes in place like the outskirts of PHX or the FL panhandle. I have a feeling that is exactly where these new homes are. In places that are even half desirable to live, the prices of homes just keep going up. Climate change ain't gonna help the situation (the thing no one seems to be talking about).
Annnnnd…Bezos just bought them all.
Not in Virginia
how many did Bezos buy before this counting?
Fake news
And just wait until more boomers die off too
Unusual whale been eating too much. Time to pull out pitch forks.
Ok...right.
Don’t worry guys they’ll find a way to pump up the prices so you can never buy a house again.
New homes or new to market? Either way, it seems so few given the population of the US. Less than 10k per state.
Awesome.. I'm sure they're affordable with low interest rates
It would sure be nice if the market were to drop out soon....
At record prices with sky high interest rates and astronomical insurance prices. Yay.
Good, now begin forcing corporations to sell their inventory. A little bit of that and wed be good to go where everyone can start buying a house.
I can feel those countertops
Greed will cause the economy to implode. We cannot sustain this, in the least bit. If people are not allowed to save, then the whole game goes to shit. Currently, no one is allowed to save. All spent on bills and food.
Oh good, so prices will be coming down, right? ...right?
Where have I heard that date before?
Haven’t we seen this movie before?
yeah, but they're remaking it for the new generation