I think this is only half of the story. There are still lots of affordable houses - in parts of the country that no one wants to live anymore. The value of my sibling's property in Illinois has barely kept up with inflation.<p>So I think some of the national statistics about house prices vs number of units are a bit misleading. We're increasingly paying a premium because we are increasingly concentrating where we want to/need to live.
This is something I hope the government can step in and help with. Maybe really low/no interest loans for first time home buyers so they can at least get into the market. Maybe that exists? Income limits need to account for up to date salaries. I'm not rich or wealthy just because I had a couple years of making 250k. I still have loans and im still burning up cash on renting. Taxes take away a ton of that income. Some guy making 70k making these rules probably thinks im rubbing shoulders with Leonardo Deicaprio at parties because making more then 200k is so unfathomable to the average person, it seems like wealth.<p>Rent situation needs help to. Were just throwing away cash on low quality rentals. A 2br in my complex over the last year is now listed at 1.5k more then a year and half ago. 3k to 4.5k. "Thats what the market wants" or something stupid is the reason, but these are not 1.5k better then it was before. How is this not price gouging? If i want to move I have to burn even more cash? Rent control keeps give me a rate under market now so there is no reason to move. Even that was some how allowed to be nearly a 10% increase. The only option is to buy to get away from this crazyness. Falling behind no matter what.<p>I don't get how these insane markets are allowed to exist with no regulation on necessary needs for people. IDK what else to do besides take my american cash somewhere where I am extremely ahead settle down there and chill.
It's completely insane. I bought my house in Austin in 2013 for $245k (I thought it was already hilariously overpriced) and last year during Peak Hype a house sold on my street for almost a million.<p>Like I guess I'm staying here until I die?
It seems the true, deciding factor is good credit and able to pay your bills. You still only need to put down closing cost, and the federal government will cosign your loan. I don't understand this idea that only the wealthy can have homes. Perhaps it is that some people want certain homes, in certain locations, and can't afford them. That's not a problem, indicative of the market, they just can't afford it.
Or they just need to have parents who will help with down payment. Estimates are that over half of first time buyers get family assistance. It’s the new feudalism.