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Labor costs are already becoming prohibitive to the point where it's almost impossible to have SFRs as starter homes. Almost all new builds that are under $300k are condos and townhomes. I don't think devaluing current properties is going to fix this problem as builder prices are more a function of construction labor salaries. So then you are demanding construction workers take a pay cut. That will just increase flight from the industry which has already been seeing a reduction in the workforce for almost 7 years now. So then what? Increase immigration to make up for the lack of cheaper labor? That's going to **** off a whole set of other people.
You tug on one string and then new problems get revealed.
I do not disagree with the highlighted statement. When the subprime bubble burst, hundreds of thousands of jobs created by that bubble were lost. There were lots of winners and losers as the result of it. I know people on both ends. Personally, I prefer to have low priced apartments that I can rent which is not possible in this environment.
It is very simple. The Fed started to do the right thing by slowly raising interest rates and reducing the balance sheet. The result was the stock market started to crash and they reversed course. If they continued, the housing market would have returned to fair value. What is fair value? Housing prices have followed the CPI until around the year 2000 when the subprime housing bubble started. I have taken housing prices from 1980, 1990, and the year 2000 and converted them to today's dollars and come up with a figure of $220,000. That is what housing would be now with no bubbles and a fed's funds rate of 5%.
Not sure how your formula works, but historically CPI has been a relative constant in regard to the slope of growth since 1967;
Unfortunately wages have not kept pace with this graph. That’s a larger discussion, but the fundamental shift was semi skilled, non college educated labor was crushed as manufacturing jobs left for other countries starting in the 1970s. In its place were jobs that paid less, because there is a supply of labor who is willing to work for less since they don’t want/can’t retrain or get higher education to improve their skills and as a result we are seeing the results.
The Fed could care less about unemployment - it’s main purpose is to prevent high rates of inflation and provide the liquidity to keep markets moving. Full stop. Paul Volker knew exactly what was going to happen when he raised the Fed Fund rate up to 22%. One of the most devastating recessions began in the late 70s through the mid 80s, and Reagan broke the unions at the same time and a whole class of people were moved from the middle to the lower middle or poverty.
Fast forward to the rapid innovation of the computer and internet and you have a bifurcated society where some can afford a house and others cannot. Here in Vegas, there is still opportunity to get in at a relatively lower cost than other places. I came from the northeast where a dated 3 bed 1 bath 1700 sq ft ranch from the 1960s in a good school district would cost 700k with another 150k needed to update it, if you could find a contractor who would not rip you off.
Back to your main point - you wish would could afford a house but you cannot. That is why you wish to have prices come down. I’m sorry that you can’t, it’s unfortunate that you might be a renter for all of your life. I don’t take delight in that. I grew up in poverty at times, we had the heat shut off and members of my family have challenges today. The main difference is I made choices very much different then them and as a result I’ve had a better financial footing.
You seem like an intelligent person, I hope you can find success and get a house. But at the end of the day, wishing for prices to fall so you can take advantage is not socialism for the rich or capitalism for the poor, it would evaporate the last vestige of a middle class that we have in this country. Once that is gone, we might as well join the rest of the tin foil hat brigade here on city data and shoot each other over toilet paper.
You speak the truth. The enemy is the deep state/shadow govt/cabal/banking cartel/elite, aka "the Fed."
The OVERreaction to the virus is a way for them to avoid responsibility and avert blame. When they failed in the Repo market back in September they realized that we were headed towards a depression and that no amount of money printing was going to help. So they decided to unleash QE Infinity to create an inflationary depression as opposed to a deflationary one. They will tax this inflation because whenever inflation is high, nominal income increases and taxes grow. Inflation increases prices and taxes increase proportionally but purchasing power plummets. Their efforts will not stabilize the economy, it will only create inflation, not jobs or wealth.
Personally, inflated home prices are of no consequence to me. What really troubles me is the war that will surely follow.
Thank you, I do my best to speak the truth. The result from all this will be the poor and middle class will suffer the most. I get to enjoy higher food prices and higher rent while I doubt my salary will go up much, if at all. I will end up just eating into my emergency fund until I eventually go bankrupt.
Quote:
Originally Posted by ddrhazy
What would you consider "low priced"? I can find plenty of apartments in Vegas under $700, whether or not you'd find them desirable is something else.
It is embarrassing, but I can barely afford the room I rent at $500 a month which includes all utilities. There are no apartments that I could afford at this time.
Back to your main point - you wish would could afford a house but you cannot. That is why you wish to have prices come down. I’m sorry that you can’t, it’s unfortunate that you might be a renter for all of your life. I don’t take delight in that. I grew up in poverty at times, we had the heat shut off and members of my family have challenges today. The main difference is I made choices very much different then them and as a result I’ve had a better financial footing.
You seem like an intelligent person, I hope you can find success and get a house. But at the end of the day, wishing for prices to fall so you can take advantage is not socialism for the rich or capitalism for the poor, it would evaporate the last vestige of a middle class that we have in this country. Once that is gone, we might as well join the rest of the tin foil hat brigade here on city data and shoot each other over toilet paper.
I went from having an apartment, to being priced out and having to rent a room at $350 a month. Years later, the owner moved out of state and the cheapest room I could find was $500 a month. Since then, rooms are now running around $700 in the area I need to be in, so I will be moving into my car if I lose this place. The other option is moving in with my parents back in Utah, which I would absolutely hate to do. There is one more option that I have had some men offer me, and no, I just will not go there. I have severe fibromyalgia which is holding me back from making even an average income. It is what it is.
I am sure you can now see where I am coming from. I have no issue with people making money and being successful. I did not miss out on buying property and now wish harm on others who did. I just wanted you to see the other side of the picture where rapidly rising housing prices has really hurt me, and wanting them to come down is only so I can continue to survive.
Thank you, I do my best to speak the truth. The result from all this will be the poor and middle class will suffer the most. I get to enjoy higher food prices and higher rent while I doubt my salary will go up much, if at all. I will end up just eating into my emergency fund until I eventually go bankrupt.
It is embarrassing, but I can barely afford the room I rent at $500 a month which includes all utilities. There are no apartments that I could afford at this time.
That's unfortunate. You sound like a nice person and I do not take any pleasure in hearing that you're struggling.
I don't have the answers if your finances are that tight. All I can say is that if something drastic is done like outlawing speculative house investing, that would probably shut down any private development. Maybe the government could fill the gap? My experience has been the opposite though.
I saw an article on citylab today about community land trusts in Texas being able to buy land and build at parity cost ~$200k. Maybe Vegas should look into a similar program to help people build roots here. The program discussed in the article linked below talks about the option people are taking which puts the deed of the property in the community land trust, and they effectively have a 99 year lease on the property. They pay ~$700/month for 30 years which is a bargain when going rents are $1200/month. The lease is also transferable to your kin I believe.
That's unfortunate. You sound like a nice person and I do not take any pleasure in hearing that you're struggling.
I don't have the answers if your finances are that tight. All I can say is that if something drastic is done like outlawing speculative house investing, that would probably shut down any private development. Maybe the government could fill the gap? My experience has been the opposite though.
I saw an article on citylab today about community land trusts in Texas being able to buy land and build at parity cost ~$200k. Maybe Vegas should look into a similar program to help people build roots here. The program discussed in the article linked below talks about the option people are taking which puts the deed of the property in the community land trust, and they effectively have a 99 year lease on the property. They pay ~$700/month for 30 years which is a bargain when going rents are $1200/month. The lease is also transferable to your kin I believe.
Thank you. The answer is I needed to prepare years ago by starting my own business of some sort. The combination of fibromyalgia and taking painkillers every day for years really sapped out all the ambition I once I had. I am not trying to gain any empathy as I know there are many others in much worse shape than I am. The one thing I do know is I am a fighter, and I always seem to keep my head above water no matter what the circumstances are.
I went from having an apartment, to being priced out and having to rent a room at $350 a month. Years later, the owner moved out of state and the cheapest room I could find was $500 a month. Since then, rooms are now running around $700 in the area I need to be in, so I will be moving into my car if I lose this place. The other option is moving in with my parents back in Utah, which I would absolutely hate to do. There is one more option that I have had some men offer me, and no, I just will not go there. I have severe fibromyalgia which is holding me back from making even an average income. It is what it is.
I am sure you can now see where I am coming from. I have no issue with people making money and being successful. I did not miss out on buying property and now wish harm on others who did. I just wanted you to see the other side of the picture where rapidly rising housing prices has really hurt me, and wanting them to come down is only so I can continue to survive.
Cripes...don't stay in your car! A lot of people have to lean on their parents. Not a great alternative, but a lot safer than your car.
Cripes...don't stay in your car! A lot of people have to lean on their parents. Not a great alternative, but a lot safer than your car.
Oh, I definitely would go move back in with my parents if I lost this place. I am 43 years old, and the thought frightens me, but it would be way better than trying to live in my car. I only used the car to illustrate what it would be like for someone who does not have anywhere else to go. It happens like crazy in high cost of living areas like California.
Oh, I definitely would go move back in with my parents if I lost this place. I am 43 years old, and the thought frightens me, but it would be way better than trying to live in my car. I only used the car to illustrate what it would be like for someone who does not have anywhere else to go. It happens like crazy in high cost of living areas like California.
I gotcha
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