What are the structural changes in the financial system or overall that have led to such absurdly expensive prices? It really took off in the last 10-20 years it seems with the last 10 going hyperbolic. I mean theoretically housing should be cheaper than in previous eras because of improved technology, streamlined production processes and importation of cheap labour, yet it just keeps going up and up and up. What the fuck is going on? I mean I've come to terms with the new status quo of being a landless serf forever renting, but I just can't wrap my head around what the fuck caused this to happen. Low interest rates? Quantitative easing? Someone please lay the facts bare for me.
>inb4 move somewhere else lol
This cope doesn't work anymore, housing is exploding literally EVERYWHERE, in former sleepy communities and literal middle of nowhere locations. I'm hearing of bidding wars on houses in the middle of corn fields, houses on the verge of collapse with 20 viewings listed for the day. It's utterly absurd. Someone explain this madness to me.
Why is housing getting so outrageously expensive?
Sounds like you've pretty much got it worked out. Low interest and QE.
Heavy-handed regulations for zoning laws in every major city make it next to impossible to build enough to keep up with demand. Bringing up this issue in a city hall meeting just gets received with bored rolls of the eyes from the council members like you're some kind of tinfoil UFO gadfly. This is because many legislators responsible hold real estate in their portfolio and directly made it expensive for housing, slowly over time like boiling frogs.
South Korea literally spams these ugly commieblocks with no fucks given about NIMBYs or basic urban planning principles or aesthetic taste but they still have expensive housing I think. The problem lies somewhere else I believe. Neoliberals have been wrong time and time again
Jesus christ that is grim
Cities artificially reduced housing demand. We are seeing an insane city exodus right now.
I work at a faang tech company in the bay and my coworkers (pulling 200k+ TC, now WFH) are buying houses in Idaho, Colorado, Utah, rural WA, rural OR, and very sleepy California towns. They don't care about paying 2x local prices because that is still 20-50% bay area prices.
There's even a slack channel where people post their recent house purchases, and they are estatic with how cheap everything is.
The tech jobs are going to lower salaries if it's WFH, or offshore to India/Russia, or rural house prices in comfy states are going to get severely BTFO.
Do you think that will lead to cities getting cheaper? I think there's still plenty of demand from other parts of the economy to keep things going up. Here in Canada everywhere is increasing. You have the WFH people moving away and also big city people cashing out and buying several rentals in a cheaper area. So prices are skyrocketing everywhere and there's nowhere for poors like me to escape to
Because no one wants to live on Megacity 1?
What? Their housing is still expensive so there is demand
Of course cope doesn't work,even here in Balkans prices of real estates is very out of proportion to people salaries and life. Like "move somewhere else" was always a fuckin meme, move where? To fuckin india or what?
chinks
We let foreign investors start buying properties. Theres a huge problem with money laundering through north American real estate, and most of these housing whales would rather sit on empty properties listed for 10x more than they're actually worth than fill them. This drives down supply while demand obviously stays the same (everyone needs a place to live) which increases the price for everyone else.
Theyre getting desp. like car manufacturers
wait 2-3 years when they're bored out of their minds and want to move back and have to sell low to get out quick.
Housing is a huge portion of the Canadian economy as well as boomer retirement wealth. Imagine what would happen if they let housing fall to fair value at this point.
this, prices doubled in the last 2 months. Tech fags will get here and realize they don't want to actually be here and everybody hates them in a few months though
Fuck off nigger. Millions of houses sit empty. Waiting for the segment of society chosen to profit (realtors working with banks) to release. If is is a slightly good deal they jump in it with their free or .25 money.
I think housing is the biggest crisis we have right now.. I would love nothing more for the market to crash hard as fuck. Anyone that bought before 2014 is in, everyone else is fucked out of home ownership without a decent correction. I think it prices go up another 25-30% then you will have priced out almost everyone from even the cheapest dump hole.
Millions of houses sit empty because of high housing costs and taxes.
The other thing that pisses me off to no end.. housing regulation has essentially made ANY new building method illegal. If say tomorrow somebody invents a revolutionary way to build a house 50% cheaper that current methods, it would be decades before it would be allowed in the building code.
Then you got asshole city councils passing laws like $20k impact fees for any new dwelling construction.. the market is getting raped by a million assholes with their hands in the pot.
that's because "renting" is the biggest scam in the universe inside the country (google Jeonsae).
No one can afford to outright buy an apartment in those commieblocks, banks only allow regular people to get a RENT mortgage; sk was over after the IMF crisis in 98, much like jap in 90.
>let's put it this way, if I had to choose between living in London or Seoul(ess), I'd rather kms
feudalism 2.0
>banks only allow regular people to get a RENT mortgage;
isn't that how ir works everywhere else?
which bank is gonna give you a loan if you are a min wage worker?
It's about wage to payment ratio not the wage itself. Once upon a time you could buy a house in a city stocking shelves
holy fuck SK is a shithole. No wonder lots of Koreans move to America
Price of something is always decided by supply and demand. In 99% of overpriced housing cases that is because either
>the government subsidizes loans for housing
so every peasant wagie wants a mcmansion he can't realistically afford
(this was the main cause of the 2008 crisis)
>brutal regulation blocking investors/constructors from making new housing
Yes regulation is brutal in the housing/construction industry.
>Once upon a time you could buy a house in a city stocking shelves
you could maybe buy a cuck one room bedroom, but certainly not a house
I think so too. I think it is temporary. I don't see my coworkers being okay living in a Boise suburb for 20 years.
Not sure desu, just giving a field report. SF landlords are sweating though. My PoS chinese landlord has been pushing me to sign a new lease and I told him I'll go month to month, if he wants to make me sign a new lease I'll go live with my parents instead. He gave in
I have no idea user. I live in a shithole third world country which is badly impacted by Covid and somehow the prices for real estate is at an ATH.
This is peak clown world.
Nope, a house. Know some house millionaires like that in Vancouver
Fiat inflation; it takes more pieces of paper to get the same actual goods.
chinks