They’re artificially high because concentrated wealth is buying up the supply. As of 2024 as much as 25% of the supply is being purchased by institutional investors in some markets
Tbh, concentrated wealth wouldn’t be able to squeeze the market if there was a healthy supply. There’s a lot of issues with single family homes, but the tl;Dr is that they’re expensive because they are by FAR the least efficient way to house people, and it’s basically the only kind of housing that most cities allow by zoning area.
This is it, and it’s been happening for years. I had a new home built in 2021 and it’s already appreciated by 25%, and periodically been valued even higher than that. I’m not selling, but that still seems crazy to me.
Bonus points for the fact the newly built home and land purchase were about the same cost as it would have been to buy an old run down home in the area that would have needed a ton of work and updates. Few people seem to be building new housing, which in conjunction with the corporate housing acquisitions is driving prices way up.
Spot on. Houses are cheap, though, but you’ll have to get something like sub 800 square feet and in the shitty part of town. A broken-down house for 120k isn’t the greatest investment unless you have a warchest or great job to improve it. Even then, you’ll be fighting comps around your house that aren’t improved.
Single income isn’t cutting it with anything of quality or merit. You’ll have a roof over your head, but the timer starts. Improve or take a loss down the road.
They’re artificially high because concentrated wealth is buying up the supply. As of 2024 as much as 25% of the supply is being purchased by institutional investors in some markets
Tbh, concentrated wealth wouldn’t be able to squeeze the market if there was a healthy supply. There’s a lot of issues with single family homes, but the tl;Dr is that they’re expensive because they are by FAR the least efficient way to house people, and it’s basically the only kind of housing that most cities allow by zoning area.
This is it, and it’s been happening for years. I had a new home built in 2021 and it’s already appreciated by 25%, and periodically been valued even higher than that. I’m not selling, but that still seems crazy to me.
Bonus points for the fact the newly built home and land purchase were about the same cost as it would have been to buy an old run down home in the area that would have needed a ton of work and updates. Few people seem to be building new housing, which in conjunction with the corporate housing acquisitions is driving prices way up.
Spot on. Houses are cheap, though, but you’ll have to get something like sub 800 square feet and in the shitty part of town. A broken-down house for 120k isn’t the greatest investment unless you have a warchest or great job to improve it. Even then, you’ll be fighting comps around your house that aren’t improved.
Single income isn’t cutting it with anything of quality or merit. You’ll have a roof over your head, but the timer starts. Improve or take a loss down the road.