I think the issue is what if you have no parents or parents with no money (or negative moneys). You could do everything right, go to school, get a professional job, and still not be able to buy a place.
The housing market is definitely fucked worldwide. Many don’t have parents with money and can only rent or not even move out of their parents house.
Some of us got lucky with minimal down payment from their parents 5-10 years ago. Its just ridiculous how the market changed in such a small time. Like the houses are still the same, the population did not grow exponentially. Wtf is going on?
I thought I got hosed 10 years ago but when I look at prices now it is night and day. The demand has pushed people into smaller towns and into the rural areas so now I get to see a modular home that sold for $75,000 10 years ago be listed for $300,000 and sell.
The cost of new houses is not helping and talking with some small scale builders (they can only build 1 or 2 at a time) the cost to build is high enough to give many pause.
This is what happens when real estate becomes your nations biggest industry.
I have seen houses prices in some places in USA and property taxes. I hope you have very high salaries ( like more than 3-4 k / month ) . the property taxes sometimes are highter than a rent here ( italy ) in a medium size city. I mean with 6k / year you can rent a 2 room apartment not so far from the city center ( like 15 minutes by car )
My buddy is a small scale builder and he’s on the sidelines currently. They have a few lots to build on in a subdivision. He’s decided not to start for fear that his margin is going to evaporate or worse he’s going to have to carry them. Carrying inventory will kill your business as a builder. He’s even contemplating selling the lots since there is some cost in taxes and maintenance, though nowhere near the costs of an improved property.
What happened is that after 2008, builders became afraid to build (for good reason), and since then housing construction still hasn’t rebounded to what it needs to be to meet demand. The houses they are building are bigger (5bd compared to 2-3bd), so new homes are also more expensive to begin with. Both first-time buyers and downsizing boomers are competing for the tiny supply of 2-3bds.
I don’t know what city you’re talking about but you can easily buy a home in a major city such as Chicago on the average salaries for white collar workers
IDK about Chicago, but it wasn’t true for me in 2019 in Minneapolis. I did manage to find a house, but yikes, what a rollercoaster that was! Definitely not ‘easy’ by any stretch.
I think the issue is what if you have no parents or parents with no money (or negative moneys). You could do everything right, go to school, get a professional job, and still not be able to buy a place.
The housing market is definitely fucked worldwide. Many don’t have parents with money and can only rent or not even move out of their parents house.
Some of us got lucky with minimal down payment from their parents 5-10 years ago. Its just ridiculous how the market changed in such a small time. Like the houses are still the same, the population did not grow exponentially. Wtf is going on?
I thought I got hosed 10 years ago but when I look at prices now it is night and day. The demand has pushed people into smaller towns and into the rural areas so now I get to see a modular home that sold for $75,000 10 years ago be listed for $300,000 and sell.
The cost of new houses is not helping and talking with some small scale builders (they can only build 1 or 2 at a time) the cost to build is high enough to give many pause.
This is what happens when real estate becomes your nations biggest industry.
I have seen houses prices in some places in USA and property taxes. I hope you have very high salaries ( like more than 3-4 k / month ) . the property taxes sometimes are highter than a rent here ( italy ) in a medium size city. I mean with 6k / year you can rent a 2 room apartment not so far from the city center ( like 15 minutes by car )
Voglio andare e vivere in Italia!
The job market is not so good and the salaries are way lower than in usa
My buddy is a small scale builder and he’s on the sidelines currently. They have a few lots to build on in a subdivision. He’s decided not to start for fear that his margin is going to evaporate or worse he’s going to have to carry them. Carrying inventory will kill your business as a builder. He’s even contemplating selling the lots since there is some cost in taxes and maintenance, though nowhere near the costs of an improved property.
What happened is that after 2008, builders became afraid to build (for good reason), and since then housing construction still hasn’t rebounded to what it needs to be to meet demand. The houses they are building are bigger (5bd compared to 2-3bd), so new homes are also more expensive to begin with. Both first-time buyers and downsizing boomers are competing for the tiny supply of 2-3bds.
There’s an element of “be fiscally responsible and you too can save up” but more often than not, the answer is “make more money”.
Or move to a lower cost of living area… (until those areas become to expensive)
Lower CoL usually equals lower pay too.
Yeap, and extra long commutes to higher paying jobs. I know people doing 1.5 hour drives one way to their job.
The real move is to sell your car and move into the city where you can walk bike or take transit to your high paying job.
And never own a home.
I don’t know what city you’re talking about but you can easily buy a home in a major city such as Chicago on the average salaries for white collar workers
IDK about Chicago, but it wasn’t true for me in 2019 in Minneapolis. I did manage to find a house, but yikes, what a rollercoaster that was! Definitely not ‘easy’ by any stretch.
Yes, that is the status quo now in Canada, you need to make $150,000 a year, minimum, to afford a mortgage to buy a low-quality apartment or home.
That’s right. You can do everything right and still live and die poor. End the myth of meritocracy, it’s all classism.