2021 Real Estate Observations (Boston, Worcester, New Bedford: move, suburbs, title)

[masssachoicetts]

Originally Posted by msRB311

I dont know that it will come down since there is a demand to live in this area and plenty of people with money...but I cant understand how it could keep going up unless everyone in the world keeps wanting to live here.

Yeah I mean the demand is there.. i guess, theoretically, house prices will continue to soar.

But starter homesa re going for 600-700k now. Im shocked.

[msRB311]

Originally Posted by masssachoicetts

Yeah I mean the demand is there.. i guess, theoretically, house prices will continue to soar.

But starter homesa re going for 600-700k now. Im shocked.

Yep. Seems like now I guess we have starter towns?

[masssachoicetts]

Originally Posted by msRB311

Yep. Seems like now I guess we have starter towns?

my childhood home went from 150k to 800k+ in 25 years. Im like.. flabbergasted. If someone told me that home would be almost a million I would laugh.

[msRB311]

Yeah it's at the point where this increase in price is just not good. Most people here don't seem to care. I mean I'm a homeowner, my home value has increased A LOT the past year but the bigger picture just doenst seem good.

[FarmCoastLocal]

Originally Posted by msRB311

Yeah it's at the point where this increase in price is just not good. Most people here don't seem to care. I mean I'm a homeowner, my home value has increased A LOT the past year but the bigger picture just doenst seem good.

Allow me to tell you the future. The divide between the haves and have nots only continue to grow wider and wider. Those persons with assets, or rather whose families have assets that continue to accumulate, their whole existence will be separate and different from those folks who by circumstance or action have found themselves in a position of lower economic power.

The latter will suffer worse health outcomes year in and year out, and their prospects at a happy life will only diminish further and further, and that will lead to desperation.

Sounds far-fetched? Look at the opioid crisis. Look at wealth inequality and its division among races. Look at life expectancies for those persons who are wealthy and those who are poor.

This desperation will manifest in one of two ways for many, but not all, Young person's growing up in this environment. They could as the herbivore men of Japan have, 1 million Strong by the way, retreat away from society and into spheres of safety around virtual worlds. Disinterested in traditional coming of age stepping Stones such as having a family. A good career. Or even interacting with the world at Large outside of the virtual worlds they inhabit.

The other response will be one of deviance. In an effort to bridge The divide between themselves and those fortunate enough to be born into the right circumstances they will take radically riskier paths to gaining wealth. In many third world countries this is already manifested with young person's engaging and being consumed by the drug trade.

This will increasingly happen as more is legalized, but it will also be manifested in such ways as risky financial bets (think walk street bets), or the motization of their whole lives.

You want to know what the American Dream is for someone under the age of 25? Going viral.

You want to know what the future looks like if a middle class life becomes increasingly more difficult to attain? It looks like a generation that will abandon the old traditions and morals to adapt to a new world. A world where attention is currency. A world that has no values outside of those that are monetary.

If the price of food and housing continues to escalate as it has been it will only lead to more desperation. Mice trapped in a bucket of water frantically trying to get out.

[r_p]

Originally Posted by FarmCoastLocal

If the price of food and housing continues to escalate as it has been it will only lead to more desperation. Mice trapped in a bucket of water frantically trying to get out.

The government will make sure that food prices are kept down (subsidies?). Here are the 2001 vs 2021 prices (adjusted for inflation):

Eggs $1.37 vs $1.53
Bread $1.47 vs $1.43
Milk $4.23 vs $3.28
Median price of house $200k vs $300k

This interference is partly the reason why real estate has gotten so expensive.

Also, I disagree about the wealth gap. Just look at the labor rates in the area. I think the biggest challenge in the future will be declining population.

[FarmCoastLocal]

Originally Posted by r_p

The government will make sure that food prices are kept down (subsidies?). Here are the 2001 vs 2021 prices (adjusted for inflation):

Eggs $1.37 vs $1.53
Bread $1.47 vs $1.43
Milk $4.23 vs $3.28
Median price of house $200k vs $300k

This interference is partly the reason why real estate has gotten so expensive.

Also, I disagree about the wealth gap. Just look at the labor rates in the area. I think the biggest challenge in the future will be declining population.

Regarding food prices I read this bit below on CNBC this morning:

"Substantial price increases at the producer end came from nonferrous metals, which jumped 6.9% for the month. Prices of grains also surged, rising 25.7%, while oilseeds increased 19.5% and beef and veal rose 10.5%. Fresh fruits and melons fell 1.9%, while basic organic chemicals and asphalt also declined."

Food is getting more expensive here and many places around thr world.

Anyone who needs to watch how much they spend on food can tell you from personal experience how much more expensive it is getting.

[GeoffD]

Originally Posted by r_p

Also, I disagree about the wealth gap. Just look at the labor rates in the area. I think the biggest challenge in the future will be declining population.

You’re not going to buy that metro Boston starter home on $20/hour and you’re not going to stuff $19,500 into that 401(k).

Personally, I don’t think inside 495 will have a declining population. People move to areas of economic opportunity and Boston is likely to remain a white collar professional nexus. Logging truck Maine or Northeast Kingdom Vermont? Sure.

[BostonMike7]

Originally Posted by r_p

Also, I disagree about the wealth gap. Just look at the labor rates in the area. I think the biggest challenge in the future will be declining population.

I really do think a gap is opening up between the haves, and the have nots. I'm not talking about the 1% either. I'm talking about maybe top 20% or so here in MA. There are plenty of folks who never lost income in 2020, never lost bonuses or RSU's, continued to max out their 401ks, home appreciated 20-30% in a year and a half, and their stock portfolio nearly doubled.

On the flipside, there are folks who were unemployed, lost a business, haven't had a raise, are still stuck making min wage, or who choose to remain unemployed because they would receive more money sitting at home than entering the workforce.

With costs increasing with nearly everything, those in the bottom half are going to find it harder and harder to make ends meet and to buy necessary goods.

[masssachoicetts]

Originally Posted by GeoffD

You’re not going to buy that metro Boston starter home on $20/hour and you’re not going to stuff $19,500 into that 401(k).

Personally, I don’t think inside 495 will have a declining population. People move to areas of economic opportunity and Boston is likely to remain a white collar professional nexus. Logging truck Maine or Northeast Kingdom Vermont? Sure.

will it though? Boston is turning into a corporate behemoth of companies telling their employees what to do. I worked in a lab around Boston, far from expressive. Nothing wrong with that, but I dont find it as innovative on a employee level as much as you might think it is.

Your best to gain your knowledge in Boston and leave it to a city more open to success/entrepreneurship and creativity.