2023 Real Estate Observations (Hingham: cabin, budget, furnishings)

[jayrandom]

Originally Posted by yesmaybe

The problem with this is younger people don't want to live in the burbs, especially expensive apartments. You'd potentially fill the affordable housing units with low/no income people but the market rate units would go empty.

... that is if it wasn't for the H1Bs ...

Originally Posted by masssachoicetts

Not true. Young people dont wanna live somewhere boring. Out here in NJ younger people prefer places like that. Nice apartments next to the train where you dont have to use your car for work. Come back to bars and restaurants? Its a win-win. People are doing this here, LI, SF area, DC area, Chicago, etc. but Boston area has very few attractive areas for young people that provide this. A lot of times an urban-ish suburb or mixed use development near transit is preferable over city living especially if you have a dog.

How do I know this? Im a 26 year old dude.

I'm not in my 20s now, but like post people in their 40s, I was once in my 20s. There may be a razor thin section of people who'd prefer to live somewhere like the apartments near Legacy Place over somewhere like West Roxbury or JP, but I can't imagine it's the majority. All of the young people I know live in the city or are married and live in SFHs way out in the suburbs.

I have actually known people who live in those sorts of apartments (and even was one of those people about 15 years ago) and they were usually:

1) people who moved here from elsewhere and didn't know any better
2) people who were biding their time to buy
3) people who weren't planning on staying in the area

All that being said, these sorts of developments are probably good in the sense that they may be the most space- and time-efficient way of building housing.

[msRB311]

Another things I've noticed about all these needs for more inventory and housing for people is that anytime a house gets built it seems like it never goes for under a million. Someone pointed out a new development in Weymouth recently where the homes are priced starting at 1M. Why has it become impossible to get a new house (or heck even an old house) for under 1M? It's like the only way to get housing for less than that is to build condos. People don't necessarily want to live in a condo, but i guess they can't be picky these days.

[ThatGuy781]

Originally Posted by msRB311

Another things I've noticed about all these needs for more inventory and housing for people is that anytime a house gets built it seems like it never goes for under a million. Someone pointed out a new development in Weymouth recently where the homes are priced starting at 1M. Why has it become impossible to get a new house (or heck even an old house) for under 1M? It's like the only way to get housing for less than that is to build condos. People don't necessarily want to live in a condo, but i guess they can't be picky these days.

large / expensive house == more money for the developer. There's no incentive to build a smaller SFH.

[msRB311]

Originally Posted by ThatGuy781

large / expensive house == more money for the developer. There's no incentive to build a smaller SFH.

But that is adding to the problem. When/why did this all happen?

I have a friend that built a house in NH not too long ago on land that was her husband's family. It did not cost anywhere close to 1M.

It just seems like something people in MA have come to accept.

[GeoffD]

Originally Posted by msRB311

But that is adding to the problem. When/why did this all happen?

I have a friend that built a house in NH not too long ago on land that was her husband's family. It did not cost anywhere close to 1M.

There’s a difference between buying land and building your own house and a developer building a spec house. The developer wants to optimize for profit. The bigger house with the premium finishes creates more profit.

[simplexsimon]

Originally Posted by msRB311

But that is adding to the problem. When/why did this all happen?

I have a friend that built a house in NH not too long ago on land that was her husband's family. It did not cost anywhere close to 1M.

A big part of the price purchase, especially in Greater Boston, is the land value. You can see that when a home is purchased for $500k-$900k or more, and the house is simply torn down.

As for the growing popularity of bigger and newer homes...call me a boomer but I blame it on those shows on HGTV and a bit on social media. Even the show "This Old House" had to evolve over the years to keep up with trend.

[id77]

Originally Posted by msRB311

Another things I've noticed about all these needs for more inventory and housing for people is that anytime a house gets built it seems like it never goes for under a million. Someone pointed out a new development in Weymouth recently where the homes are priced starting at 1M. Why has it become impossible to get a new house (or heck even an old house) for under 1M? It's like the only way to get housing for less than that is to build condos. People don't necessarily want to live in a condo, but i guess they can't be picky these days.

Because there's a line of buyers who find $1 million or more affordable and even in a bargain in some areas. Even if a developer wanted to build a lower-cost home in those areas (and I can't imagine why unless incentivized by some form of subsidy), it would just get into a bidding war and sell for $1 million or more anyway.

You either have to fulfill all the demand created by buyers with deeper pockets or forcibly exclude them from buying (a la income-control).

[gf2020]

Originally Posted by msRB311

Exactly. People simply want to see prices of SFH go down.

Do they? Do you?

If I already own a nice home in a desirable Boston suburb, why would I want to see the prices of single family homes come down?

Over the long haul, when have prices ever gone down? We bought our current home in 2005, near the peak of the last strong real estate market. The value dropped for the next 5 or so years but has been on the increase for the last 10+ years.

[newenglandgal123]

Originally Posted by gf2020

Do they? Do you?

If I already own a nice home in a desirable Boston suburb, why would I want to see the prices of single family homes come down?

Over the long haul, when have prices ever gone down? We bought our current home in 2005, near the peak of the last strong real estate market. The value dropped for the next 5 or so years but has been on the increase for the last 10+ years.

Selfishly I'd love to see prices go down in this area because I don't yet have my 'dream' house. If you already have a house here that checks off all the boxes then you're sitting pretty. Otherwise, if you're like me and so many others who are looking to either buy their first house or trade up to something that's a better fit then you are pretty much SOL. Unless of course you have multi millions at your disposal.

[msRB311]

I guess I don't care if prices when down and yes I'm a homeowner. I don't plan on selling for a long time. I just think where we are now is ridiculous. A home around here is way too expensive. I guess we have people with way too much money in the area as well.

I also agree that HGTV and Instagram are to blame for the cost of home renovations being through the roof. It's like if you don't have an updated kitchen you might as well be trailer trash these days.