Americans are working less

[HemiEd]

Originally Posted by Fish

You were clearly a very hard worker with a lot of determination. Good for you. But still, the fact that you were able to purchase a home for $200 down kinda supports my point. The average down payment for a home in Missouri is now over $20,000. When you were that age, your purchasing power was 10 times greater than it is for a young person today. That dramatic of a price increase, and stagnant wages for decades.

No question about that part, it is pathetic what has happened to the starter home availability. I have two grandsons dealing with that very issue right now, it is sad.

Big investment companies have bought up much of the cheap housing for various financial opportunity reasons, rentals, flipping etc. It is maddening. Then of course these companies raise the rent to crazy numbers.

But, like I say, even 53 years ago, without the GI bill, I wouldn't have been able to do it either. $200 is all I could get my hands on.

[mr. tegu]

Originally Posted by HemiEd

No question about that part, it is pathetic what has happened to the starter home availability. I have two grandsons dealing with that very issue right now, it is sad.

Big investment companies have bought up much of the cheap housing for various financial opportunity reasons, rentals, flipping etc. It is maddening. Then of course these companies raise the rent to crazy numbers.

But, like I say, even 53 years ago, without the GI bill, I wouldn't have been able to do it either. $200 is all I could get my hands on.

Starter homes are ridiculously overpriced due to a lot of those reasons. So when comparing to 40-50 years ago it’s just such a pointless exercise. Then, starter homes were being built and supply plentiful, while still being in good locations. But now those same homes are by and large occupied so you have to wait for availability and when it does come on the market you have compete because the location is good. The other option is to move 60 miles away for a comparable home size that’s is not being bid on by 10 people and Blackrock. The only starter size homes and prices I see being built are horribly ugly connected properties like duplexes/townhome communities that look like they purchased from a Sears kit.

[sedated]

Originally Posted by mr. tegu

Starter homes are ridiculously overpriced due to a lot of those reasons. So when comparing to 40-50 years ago it’s just such a pointless exercise. Then, starter homes were being built and supply plentiful, while still being in good locations. But now those same homes are by and large occupied so you have to wait for availability and when it does come on the market you have compete because the location is good. The other option is to move 60 miles away for a comparable home size that’s is not being bid on by 10 people and Blackrock. The only starter size homes and prices I see being built are horribly ugly connected properties like duplexes/townhome communities that look like they purchased from a Sears kit.

The people raising the prices of starter homes, and building crappy homes, are not the same people buying new iPhones and using DoorDash. That is...another generation, that bought THEIR homes for $200 down.

[mr. tegu]

Originally Posted by sedated

The people raising the prices of starter homes, and building crappy homes, are not the same people buying new iPhones and using DoorDash. That is...another generation, that bought THEIR homes for $200 down.

I don’t think it’s the fault of generations at all. Prices for starter homes from 50 years ago would always go up, especially those that remain in good areas. Less supply in an area means higher cost. So think a lot is just natural. But it’s exacerbated by conglomerates buying up properties and even average people renting out properties, whether it’s ones they inherited or their own that they purchase for renting out. Now, why smaller single family homes aren’t built in more desirable areas I assume just comes down to profits, but I’m sure there are other factors. I think most DoorDash and new iPhone people are probably not in the market at all.

[KCUnited]

Banks were practically giving free money away for like a 10 year stretch but home ownership sounded soooo boring then

[Fish]

The rent-to-income ratio is 89% higher for Millennials than it was for Baby Boomers at the same age in 1985. The average Baby Boomer in their 30s earned $48,113 and paid $359 for an apartment in 1985, a 9% rent-to-income ratio, Real Estate Witch stated. The average Millennial in their 30s earned $64,994 in 2020 and paid $894 for a rental unit, a 17% ratio.

• From 1985 to 2020, rent prices increased 149%, while income grew just 35%. Rent prices have increased about 4x faster than income during that time period.
• If rent prices grew at the same rate as income since 2000, the median rent in 2020 would cost about 34% less — $586 per month instead of $894.
• From 1985 to 2020, the median U.S. rent-to-income ratio nearly doubled from 9% to 17%.
• The rent-to-income ratio is 89% higher for Millennials than it was for Baby Boomers at the same age in 1985. The average Baby Boomer in their 30s earned $48,113 and paid $359 for an apartment in 1985, a 9% rent-to-income ratio, Real Estate Witch stated. The average Millennial in their 30s earned $64,994 in 2020 and paid $894 for a rental unit, a 17% ratio.
• Since 2000, median rent prices have outpaced inflation by 29%.
• Median rent prices grew 90%, while inflation grew 70%.
• From 2000 to 2022, median home prices increased 156% nationwide, while median rent prices increased 90%.

https://www.realestatewitch.com/rent...me-ratio-2022/

[|Zach|]

Originally Posted by KCUnited

Banks were practically giving free money away for like a 10 year stretch but home ownership sounded soooo boring then

Only semi related but I find it interesting that the movie Fight Club came out in 1999 and its main premise was being a normal guy with a comfortable place to live and some nice things to surround yourself with was very normal so much that it was seen as unfulfilling and he dives into the madness that is the rest of the movie.

Fast forward 25 years and this crop of youngsters wake up dreaming of that set of circumstances that was seen as boring and lifeless.

[KCUnited]

Originally Posted by |Zach|

Only semi related but I find it interesting that the movie Fight Club came out in 1999 and its main premise was being a normal guy with a comfortable place to live and some nice things to surround yourself with was very normal so much that it was seen as unfulfilling and he dives into the madness that is the rest of the movie.

Fast forward 25 years and this crop of youngers wake up dreaming of that set of circumstances that was seen as boring and lifeless.

That's the thing about opportunity, you actually have to take advantage of it when it presents itself

I wish I'd bought more properties at sub 3% like the evil corporations did

[|Zach|]

Originally Posted by mr. tegu

I don’t think it’s the fault of generations at all. Prices for starter homes from 50 years ago would always go up, especially those that remain in good areas. Less supply in an area means higher cost. So think a lot is just natural. But it’s exacerbated by conglomerates buying up properties and even average people renting out properties, whether it’s ones they inherited or their own that they purchase for renting out. Now, why smaller single family homes aren’t built in more desirable areas I assume just comes down to profits, but I’m sure there are other factors. I think most DoorDash and new iPhone people are probably not in the market at all.

The generation that benefitted from those starter homes shut the door behind them. Practically made being against any new housing being built anywhere a lifestyle. City Council meetings across the country month after month year after year the only thing people are truly passionate about is making it impossible for others to have a realistic shot at housing.

[BWillie]

Originally Posted by |Zach|

The generation that benefitted from those starter homes shut the door behind them. Practically made being against any new housing being built anywhere a lifestyle. City Council meetings across the country month after month year after year the only thing people are truly passionate about is making it impossible for others to have a realistic shot at housing.

Plenty of cheap homes anywhere in rural BFE America.

All people gotta do is move.

Bam. Affordable housing just like that.

[HemiEd]

Originally Posted by mr. tegu

Starter homes are ridiculously overpriced due to a lot of those reasons. So when comparing to 40-50 years ago it’s just such a pointless exercise. Then, starter homes were being built and supply plentiful, while still being in good locations. But now those same homes are by and large occupied so you have to wait for availability and when it does come on the market you have compete because the location is good. The other option is to move 60 miles away for a comparable home size that’s is not being bid on by 10 people and Blackrock. The only starter size homes and prices I see being built are horribly ugly connected properties like duplexes/townhome communities that look like they purchased from a Sears kit.

Yes, that is the situation I was trying to describe. It is horrible situation and a sad one. Furthermore, builders quit building the low cost homes in favor of the higher profit higher end homes.

I might clarify though, even 40-50 years ago, the starter homes were mostly just older lower end homes that I ran into. Didn't see any new ones in our price range back then.

Something truly needs to be done.

[stevieray]

Originally Posted by HemiEd

Yes, that is the situation I was trying to describe. It is horrible situation and a sad one. Furthermore, builders quit building the low cost homes in favor of the higher profit higher end homes.

I might clarify though, even 40-50 years ago, the starter homes were mostly just older lower end homes that I ran into. Didn't see any new ones in our price range back then.

Something truly needs to be done.

Starter homes are seven percent of new homes being built.

Had a buddy supervise the building of a new subdivision in Belton. Nice homes.

They aren't for sale, just rentals.

Rent is too high.

Greed rules the day.

[HemiEd]

Originally Posted by stevieray

Starter homes are seven percent of new homes being built.

Had a buddy supervise the building of a new subdivision in Belton. Nice homes.

They aren't for sale, just rentals.

Rent is too high.

Greed rules the day.

Sad deal, my two grandsons are in this tough situation.