Posted on 06/08/2023 7:54:03 AM PDT by Kaiser8408a
Starter homes are simply unaffordable.
Treasury Secretary Janet “Too Low For Too Long” Yellen, and former Federal Reserve Chair, is partly responsible for a phenomenon plaguing America: the death of starter homes.
As Mish has discussed, with main markets no longer an option for first-time buyers, Point2 looked at the country’s 100 largest secondary cities for the median price of a starter home and renter households’ median income. Defined as large non-core cities within a metro, these cities used to be fruitful house-hunting grounds for first-time buyers exploring less-expensive options away from main cities. But as it turns out, unaffordability can put a dent in homeownership plans regardless of city type or size.
A starter home, according to the Census Department is priced in the bottom third of homes in the area.
Pomona, CA, is in fourteenth place. The average renter in Pomona makes $49,000 a year and needs to get to $121,000 a year. That’s nearly 2.5 times current salary.
In Burbank, CA, the average renter makes $63,000 year an needs to get to $193,000. That’s over 3 times current salary.
Within Grasp
15 Almost Affordable Cities In no market can the average renter make the plunge.
Case-Shiller Top City Home Prices Decline From Year Ago for the First Time Since May 2012
CS National, Top 10 Metro, CPI, OER 2023-03 Housing starts, like mortgage purchase demand, remains depressed compared to the housing bubble of the 2000s.
Now, will The anticipated Fed pause in rate hiking help? Not likely. The Fed still has over $8 trillion in monetary stimulus chasing assets. Too much Stimulypto.
Janet “Bubbles” Yellen probaby listened to too much Don Ho.
(Excerpt) Read more at confoundedinterest.net ...
Barry tried the same with cars. “Cash for clunkers” took affordable used cars off the market. A teenager used to be able to buy a working and easily serviceable beater for a few hundred bucks. The end goal is no private vehicles and everyone live in government owned housing. “You vill own nothink, und you vill be happy. Zat is an orrrderrrr!”
I know... Let’s flood the country with millions of illegal aliens, put them up in free housing, and let them get jobs to keep wages low. THEN let’s end domestic energy production to raise the cost of everything. And, let’s go Brandon
but shouldn’t we be happy that men can pretend to have vaginas? We would never have that under a fiscally-sound regime. /s
Buy the time all the mandatory cost's are thrown in your already way out of reach.
If the lumber was free and the trades men worked for nothing, it would still be prohibitive.
They want everyone living in 15 minute cities ... (ghettos)
like ants. ....what “they” have in store for us is not pretty.
I remember watching videos of cars in great shape, only a few years old, being completely destroyed. Obunghole even ruined the market for used spare parts.
In the Third World an extended family typically owns the house.
Take a look at the local population of major “American” cities.
Eighty-one million ballots were cast to make the USA more like the Third World.
‘Educated’ young adults for a promised $10,000 student loan haircut are going to pay around $100,000 more on average for housing in their lifetime.
OOO ..... crack me up ...
It's hard to believe that is even a real thing ....
but it Is ....
the scrambled eggs that must be squishing around in those peoples heads ..... how does it not run out of their ears? and as for
flood the country with millions of illegal aliens
It's been show that many people suffer from depression ... a lack of friends ...
Don't you want more friends..?
on topic ...
All that inner city business space will have to be filled with somebody. Commercial values are plunging.So ... fill it up with gov subsidized illegals.
I'm looking forward to my new 250 sq ft safe space, I won't have so much trouble finding my glasses.
Mom and Dad, we can’t afford to buy a house in Pomona, but if you sell your house in Texas we could all buy a house in Pomona.
Extended family occupancy is common worldwide.
And their solution will be -———— Public Housing
“your already way out of reach.”
I’m thinking that a home’s selling price is determined by what a buyer is willing to pay for it.
Assuming that’s the case, what does it mean for homes to be unaffordable?
A builder buys a piece of land and puts a home on it. No way is he going to build a home that’s that he can’t sell for more than he into it.
A seller of an existing home wants as much money as he can get for it but also wants to get it sold.
Nothing going on here but a free market.
I believe some, perhaps many, people can’t afford a home where they live and work, but I don’t an answer other than they need to make more money. Government’s role in that is to create conditions for a good economy.
That’s where Democrats and Republicans differ. Republicans want a vibrant economy. Democrats want to shuffle money to those “without enough”.
“Extended family occupancy is common worldwide.”
Meh, I think I’d rather go homeless (if I was a young 20 something) than live with my parents forever.
Now that I’m in my 40s it might be nice for a change to move back home, but back then I would have chewed my leg off to get out.
lol...And Pomona is the pits....Lots of crime, low life etc....
PRIDE!!!
The used car market is still in a shambles.
The average renter in Pomona makes $49,000 a year and needs to get to $121,000 a year. That’s nearly 2.5 times current salary.
What is different. This is how it has worked. In the 80s opening a bread and breakfast was a way to get the home one wanted.
” what does it mean for homes to be unaffordable?”
If I’m building houses .....
cost of planing
cost of lot
Cost of permits(multiple)
Cost of “compliance” paper work
cost of compliance.. in the field
These are just example’s not a full list.
all these costs must be born by the structure.
If I build a bigger house these costs are absorbed easier.
But if the average young wage earner can only afford 1200 sq ft at my building price .... he’s left out ... because I’m only building 2400sq ft
Gov frowns on small houses because ... less tax base.
help any? I’m not to sure how clear I’m making this ...
but bottom line ...small less expensive homes are discouraged at every turn.
Build Back Better, means destroying first.
People will start demanded that the government take over housing.
” if the average young wage earner can only afford 1200 sq ft at my building price .... he’s left out ... because I’m only building 2400sq ft”
You wouldn’t build the 2400 footer unless you thought there were buyers.
“Gov frowns on small houses because ... less tax base”
That’s a sneaky one because don’t our politicians talk about being on the side of the little guy?
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