Possible Housing Affordability Crisis in Dallas (Mesquite, Frisco: new house, buy, construction)

[Threestep2]

Originally Posted by CalTex Ranger

Median household income is up $10,000 in DFW since 2010

Median Home price in DFW is up $100,000 in DFW since 2010

For those of you that struggle with the concept of wage inflation and home price inflation - along with basic concepts of "affordability"

Math is undefeated.

Please check on those "median" numbers and read up in the only official source US Dept Stats on what is included and what is not.

[kyam11]

Originally Posted by Katana49

No kyam.

I'm saying that wages have not kept up with the pace of housing increases... as is everyone else here except you. If I didn't know better, I'd have to say English is not your first language due to how badly your understanding of the topic is. Therefore, I don't have much hope of you comprehending this link, but for everyone else, they'll see that real wage growth has been stagnant or downward trending since 2015 for the most part:

https://www.forbes.com/sites/patrick.../#5a9163397284


Real wage growth is barely keeping up with inflation, much less the rate of increase housing has seen.



I don't love you, sorry.

What was said is that wage increase has not happened enough to keep DFW affordable. That is incorrect. DFW is absolutely affordable as proven by all the homes sold. The market does not lie

You saying that it used to be 2m people could afford to buy homes in DFW at the median price and now only 1 million people can afford the 30000 homes that are at or near the median price does not make a crisis. A crisis would be only 15,000 people being able to afford the 30,000 homes for sale

[tonie972]

Originally Posted by kyam11

What was said is that wage increase has not happened enough to keep DFW affordable. That is incorrect. DFW is absolutely affordable as proven by all the homes sold. The market does not lie

You saying that it used to be 2m people could afford to buy homes in DFW at the median price and now only 1 million people can afford the 30000 homes that are at or near the median price does not make a crisis. A crisis would be only 15,000 people being able to afford the 30,000 homes for sale

I don't quite agree with this. Just because 30,000 homes are sold that doesn't prove wages have been increased and it's affordable. There could be other reasons such as investors are buying them, people coming from other states with cash are buying them (Texas added approx 400k people in 2017 according to census.gov), people have been working for years and got a huge saving are buying them, people are buying them because they believe prices will increase and they can't afford them, people are settling for less than what they could used to afford, etc...
Just because 30,000 homes are sold that doesn't make it affordable or wages have been increased.

[kyam11]

Did you really just say that just because 30,000 people bought homes (which by definition means they can afford them) doesn’t mean they can afford them or that they have the wages to support the purchase?

[Y'allNotYa'll]

Originally Posted by kyam11

I moved from the SFO area and I'd be lying if I said I knew exactly how waitresses, grocery clerks, etc do it, but obviously they likely aren't buying homes. Is SFO affordable for everyone? Of course not. Is it is an affordability crisis. Not yet since homes keep selling.

I have no issue with people stating that DFW is becoming harder for the everyday hourly worker to afford to buy a house or if they said the pool of potential buyers has shrunk because the housing prices have made the floor for total wages needed higher due to increased costs. That is true, but the hyperbole of we are in a crisis couldn't be further from the truth.

Except wages have kept up enough to gobble up inventory. So again you are 100% wrong. Has every single person's wages? Of course not, but that has never been the case. THE MARKET DOES NOT LIE!!!

You are basically saying wages have not kept up to the point where the 40,000 homes that have been listed could have been bought. Except they actually have been bought by 40,000 people who have proven their wages have kept up. You can keep saying what has already happened can't happen but you are wrong. That is not arguable. So to the poster who said wages have not kept up to allow historically low inventory level is a false statement because they have. Gotta love someone who doesn't understand basic common sense.

Your millionaire privilege is showing again. Sorry, 2nd generation millionaire privilege. You just proved it by saying SFO, one of the most expensive places to live in the US, isn't going through an affordability crisis because "homes are still selling". You along with your rich buddies who live(d) there can afford those millionaire dollar homes. The average person cannot. ****, a family that made $150,000 a year couldn't.

TO REITERATE: People that live there can technically afford it, but they're spending a lot more money to pay it off. Think someone that lives in a $500,000 house in LA (remember, the average Joe in an average house) is gonna come here and move into a home in Frisco valued the same because they can still technically afford it? No. If that were the case, you'd be seeing lots of people from Mesquite, Garland, Irving, etc. that get by living in Frisco because, technically, they can still afford it.

It is not a crisis for you. It might not even be a crisis to middle class people/families. But it is a crisis for a lot of people you're telling to move out of this wonderful metro just because people like you keep driving up the prices. You've got some serious nerve telling people to move out of Dallas because it's a "rich" metro, even though they've been able to afford it all of their lives until just recently.

For the last time, wages were already up. As someone else said, 100K people used to be able to afford new homes. Now it's only 40K, most of which had some pretty nice incomes before the increase in prices.

You might be smart enough to be millionaire, but you're the only one in this thread without basic common sense. Or empathy for that matter.

P.S. Nobody likes a narcissist.

[CalTex Ranger]

Originally Posted by Threestep

Please check on those "median" numbers and read up in the only official source US Dept Stats on what is included and what is not.

That’s census and MLS data. Rough numbers, but the fact that median home price has gone from 3X salaries to 4X salaries is real.

[CalTex Ranger]

Originally Posted by Threestep

Please check on those "median" numbers and read up in the only official source US Dept Stats on what is included and what is not.

If you have a competing stat. Have at it.

[kyam11]

Originally Posted by Y'allNotYa'll

Your millionaire privilege is showing again. Sorry, 2nd generation millionaire privilege. You just proved it by saying SFO, one of the most expensive places to live in the US, isn't going through an affordability crisis because "homes are still selling". You along with your rich buddies who live(d) there can afford those millionaire dollar homes. The average person cannot. ****, a family that made $150,000 a year couldn't.

TO REITERATE: People that live there can technically afford it, but they're spending a lot more money to pay it off. Think someone that lives in a $500,000 house in LA (remember, the average Joe in an average house) is gonna come here and move into a home in Frisco valued the same because they can still technically afford it? No. If that were the case, you'd be seeing lots of people from Mesquite, Garland, Irving, etc. that get by living in Frisco because, technically, they can still afford it.

It is not a crisis for you. It might not even be a crisis to middle class people/families. But it is a crisis for a lot of people you're telling to move out of this wonderful metro just because people like you keep driving up the prices. You've got some serious nerve telling people to move out of Dallas because it's a "rich" metro, even though they've been able to afford it all of their lives until just recently.

For the last time, wages were already up. As someone else said, 100K people used to be able to afford new homes. Now it's only 40K, most of which had some pretty nice incomes before the increase in prices.

You might be smart enough to be millionaire, but you're the only one in this thread without basic common sense. Or empathy for that matter.

P.S. Nobody likes a narcissist.

Did you fail Econ 100? Do you not understand basic economic concepts.

It is a simple equation

Demand>Supply = No crisis

Demand<Supply= Crisis and homes are unaffordable and overpriced

Demand = The number of all the people in DFW who could afford a house 2,3, or 4 years ago

Supply = The number of houses at that day's (when measured) current prices.

2,3, 4 etc years ago you had:

Demand>Supply

Now you have:

Demand minus n > Supply.


N is the number of people who could afford a house 2,3, 4 years ago but now can't due to wage stagnation. When and only when Demand minus n< Supply is there a crisis and prices would have to come down.

We are currently at Demand minus n > Supply.

Does n have a crisis? Yes, but since DFW is not equal to n, but rather equal to Demand minus n there is no crisis.

Second you should sue your college. They are stealing money since you don't understand this basic concept which means they failed to teach it to you.

If you have 100 bottles of water and 50 thirsty people you do not have a crisis. If an hour later you have 100 bottles of water and 80 thirsty people you would argue that you now have a crisis but you don't. You have a crisis when you have 100 bottles of water and 101 thirsty people. Learn basic supply and demand concepts and then talk.

BTW I'll continue to drive up prices. Get better or get out. I welcome either.

[Y'allNotYa'll]

Originally Posted by jiping

Your parents picked the best place they could afford then. They didn't stuck at NYC or LA waiting for the house price there to drop and accommodate their $35,000 income. You could made similar choices and move to more affordable places like Oklahoma City.

While kyam11 is showing off his millionaire privilege, you are also living in your millennial's bubble which takes home ownership (and good district) for granted.
Millions of people in NY and CA get up at 5AM and spend 2-3 hours commuting to work, so that they can buy an "affordable" $400K SFH far away from cities. So yeah, of course DFW is super cheap in comparison. At least you don't have to live in Waco and drive to and from Dallas every day.

"Dallas is getting bad for low-income people, but it's still not even close to as bad as NYC and CA".
I recognize this privilege, but the point is that people have to spend A LOT more for the exact same thing. And in just 4 years! Doesn't this concern you?? If it was gradual that'd be a different story. I don't WANT Dallas to become like those places, or any other metros for that matter. Why should we let the uber wealthy from out of state drive up the prices? Poor people are gonna continue to live here no matter what, how is it fair that we make it even more difficult to move up in life?

[kyam11]

Originally Posted by Y'allNotYa'll

"Dallas is getting bad for low-income people, but it's still not even close to as bad as NYC and CA".
I recognize this privilege, but the point is that people have to spend A LOT more for the exact same thing. And in just 4 years! Doesn't this concern you?? If it was gradual that'd be a different story. I don't WANT Dallas to become like those places, or any other metros for that matter. Why should we let the uber wealthy from out of state drive up the prices? Poor people are gonna continue to live here no matter what, how is it fair that we make it even more difficult to move up in life?

Spoken like a true socialist