Zillow Study Shows 1 In 3 Homes Are Unaffordable, But Vacation-Home Sales Are Soaring

zero hedge ^ | 4/5/14 | tyler durden

[Nachum]

In a further demonstration of the socially destructive and ever widening gap between the haves and have nots, we see that the affluent are buying second homes at an ever increasing clip (up 30% last year), while first home buyers recede into the abyss as private equity and Chinese buyers make purchasing a home unaffordable for the average American.

Specifically, a recent study from Zillow showed that more than half the homes in seven major American cities are unaffordable based on historical standards. Those cities are: Miami, Los Angeles, San Diego, San Francisco, Denver, San Jose and Portland, Ore. Nationwide, it found that 1 in 3 homes were unaffordable. The results seem to back up housing analyst Mark Hanson’s recent conclusion that despite low interest rates, housing is even less affordable than the most bubbly year ever, 2006.

This also appears to be a primary reason behind Zillow now actively pitching its U.S. real estate listing to the Chinese, many of whom are corrupt and looking to launder ill gotten gains.

First, from Housing Wire:

[Organic Panic]

This is stupid government thinking. The headline should be

1 in 3 homes are priced too high for their market.

[kearnyirish2]

“No. They are in the private sector.”

That is impressive; in my area the only ones laying out money like that are either wealthy foreigners or public employees with seniority (de facto employment for life).

[LS]

One guy just built, and is now selling, a $1.8m house. He had a drug-to-your-home pharmacy delivery company that went big.

[CodeToad]

What does Zillow really know, they can’t even get home prices right.

[AppyPappy]

My house shows as $367k on Zillow. If someone wants to write me a check for that amount, I can be out in 20 minutes. Hell, you can have the furniture.

[Cementjungle]

Nationwide, it found that 1 in 3 homes were unaffordable.

So, that means that 2 in every 3 homes IS affordable. Are they suggesting that every home should be affordable to anyone for all to be right in the world?

[dfwgator]

The Entitled Generation can be viewed on HGTV as they shop for their first home, looking for one better than their parents have…for themselves and their dog.

Or their "significant other".

[nascarnation]

Excellent post.
Obviously you remember some history.

[kearnyirish2]

“One guy just built, and is now selling, a $1.8m house. He had a drug-to-your-home pharmacy delivery company that went big.”

Nice; people like that don’t even bother setting up shop in NJ anymore - they’d be taxed too much.