Why Houses Are So Expensive In The U.S.
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- Опубликовано: 18 май 2024
- With Covid encouraging city dwellers to move to the suburbs and families looking for home offices and bigger yards, prices for the American dream home have skyrocketed.
Home prices surged in March, up 13.2% from the year prior, according to the S&P CoreLogic Case-Shiller National Home Price Index.
“Everybody expected housing to really sort of dry up with the rest of the economy,” said National Association of Home Builders CEO Jerry Howard. “And in fact, the opposite has happened. People who have been sort of scared out of the cities by the pandemic.”
With homeowners unwilling to sell, a record low supply of homes for sale has forced buyers into intense bidding wars. At the end of April, there were only 1.16 million houses for sale in the U.S. down 20.5% from the year before.
Higher costs for land, labor and building materials including lumber have also impacted homebuilders.
With the 30-year fixed mortgage rate hovering near a 50-year low and strong demand pushing prices to all-time highs, why is the housing supply so meager? Watch the video to find out if the U.S. is running out of houses.
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Biggest mistake I ever made was moving out of my parents at 20 years old. I'm 24 years old now and wasted almost $60,000 on rent went I could have saved that and bought a home. I fell for the whole "you need to move out to be an adult" scam.
These days (leaving home early) It is definitely a scam. Try telling that to clueless Boomers who would say the Kid should leave at 18 and fend for him/herself. How dumb can a person get. Maybe that worked in the 1950's and 60's when rent was really cheap and you didn't have to make or have a huge pile of money to survive. Some people are perpetually stuck on their infantile nostalgic indulgence syndrome. NIS.
In latin america we dont understand that culture. Adults sons could live with their parents forever and we dont see it bad.
Life is so unfair when you are could have lived with your parents, and if you did, by age 24 now, you'd have your own home by now. OMG, what a phucking unfair world, not to be able go immediately from your parents home to a home of your own by age 24. Life in the US sucks, and is so very very hard for a 24 year older these days now. I just had no idea how hard it is now for 20 somethings living in the US these days. I hope things pick up for them. It sounds like its been a very hard and unfair life so far for so many of them reading this on this Memorial Day weekend..
@@arlmont123 living at home is not the issue. That is wise. But they could be 34 and you’d still say Blame them for not being able to buy your $1 million home.
You completely don’t understand anything. A person could be 54 and still be on a more modest income and you’d still blame them for not being able to afford a home even if it was $3 million. Do you not realize that not everyone’s life can or will be like yours? And anyway it is not supposed to be. I might as well stop at this point because you are a clueless, insulated person living in “ the good old days “ and know nothing of the current reality. I am sure you have pictures of Rush Limbaugh and Alex Jones hanging on your living room wall.
Literally thought COVID would crash the market and I’d finally be able to afford a home......jokes on me I guess
Nah, it’s going up, just like everything globally.
how would covid even cause the housing market to collapse
@Saksham Shukla oh yeah and whys that you must have some factually based logic here other than its expensive therefore a bubble
@Saksham Shukla not as long since there's a constant limited supply of homes.
When the eviction moratorium ends…that’s the time to to buy a house!
They missed the part of the issue where companies and extremely wealthy individuals are holding a huge chunk of affordable housing hostage.
Shhhh, this is corporate media. Berkshire Hathaway, Blackrock, and other PE makeup 15% of the housing market.
When a person (or corporation) buys a 2nd home, it should be taxed at 200%
3rd home should be taxed at 300%
4th at 400%
etc.
@@nottiification so tax is a punishment and not a means to generate funds for the government? neither one will help YOU.
@@dirtbeard108 yes that is the point of tax, its a tool to regulate the economy
Rent and sale prices would probably increase.
I once asked a retailer why are prices so high. He told me why not. If people are willing to pay these prices, why not.
That's right though. Why not?
Like everything else basically.
Basic concept of supply and demand. . . that's how it works. The cost of goods and services is not arbitrary. It is scientific. . . The market (consumers and target market) determine what they will pay for a good or service.
It's also location - a medium-sized home in the most desirable part of Brooklyn, NY could be north of $2mln, the exact same house in Gary, Indiana will be $50k
(a great example of this is Brush Park in Detroit: the run down mansions there were around $60K 10 years ago, now a bit more due to revitalization)
But i'm not. In fact, i _can't!_
It’s like joining a game of Monopoly after everyone’s been playing for 30 years.
To complete the analogy. The same late comers will still praise & worship the people that have rigged the game as if they are extra-hard workers and more intelligent than the rest of us.
Overpopulation due to selfish breeding is the root-cause of the worlds worst problems. Breeders don't give a crap that their selfish spawning causes less resources for the masses and so higher costs for the masses which caused Millions to become homeless. Basic Economics. Breeders either are not smart enough to grasp the real concept of Supply vs Demand or they don't give a crap about anybody except themselves.
@@Jesus-xm5gv mate there’s enough room for every single person on this earth to live self in Texas.
There is more than enough resources on this Earth to support every single one of us and billions of more.
The overpopulation myth is one that is peddled by billionaires and elites, the very ones responsible for the housing problem and nearly every other problem.
NO biological parent cares what happens to their kids or grandkids. No one wants to die. That is one of the main reasons why breeding children is evil. At the age of ~ 3 years old we learn we will someday die. Selfish breeding is the root-cause death. Breeders create suffering and death..another person that has to get old, suffer and die. Breeding more children that never asked to born knowing they will suffer in old age and die while there are Millions of orphans waiting to be adopted is The Epitome of Selfishness.
The only people who can afford to buy houses/outbid the rest are the rich who don’t even live in the houses but just rent them out. All they do is take out a mortgage and just charge rent to be a few hundred more than their monthly payments. So normal people can’t afford to buy nor rent and the rich just get richer
Expensive, but built like a garden shed
I know right!! It couldn't withstand the wind speed from one of my farts! Let alone anything else!😒😒😒
American built houses and cars are terrible. I guess we make good jeans with Levi’s lol trash too.
True
Ron Watson Levi’s are definitely trash
Yes I think so
Ironically the shortage of homes on the market is due to nobody wanting to sell their homes to buy new ones because the home prices are too expensive.
I would like to sell my home in San Francisco and move to Sacramento. I would be able to upgrade from a 2,400 sq ft home to a 4,000 sq ft home with a pool. I could pay the house off in full and still have $500,000 left to put in the bank. Now that I am able to work from home full time it is very appealing. My wife could retire early.
It's all connected. I bought my starter home several years ago and have a roughly $90k mortgage left. If I sold it, I could probably net $200k profit. Not bad, right? But any house I want to buy to upgrade my living situation is over $500k, probably $550k. I can't afford the $300k+ mortgage that would require, so I stay put and hope I either find a better job or properties become more affordable. That means one less home at the bottom of the market for people starting out and putting upward pressure on homes just a bit better than mine.
Also, not willing to sell because NoBiden did, and is, destroying the economy. Caution rules if you already own a house.
Thank you
Normal people sell, the investors buy 100 houses to rent them out to people like us.
They’re expensive because it’s profitable, for companies to own real estate 🏡. They can throw an extra $50,000 on top of asking price. They can drive up rent, and home prices. Meanwhile, average Americans just want a place to rest from working 80+ hrs a week.
Don't forget for about 30% of home construction budget goes to government one way or the other.
I felt that hard
Inflation is what keeps you working for 80+ hours. Inflation is caused by government laws (at least in the USA it is)
This why the US is trash
Well its some of that and the fact that housing is one of the last surviving industries here.
And so many want to make money here flipping houses etc, even as a second income...
There is a middle class formed from some uni grads and government employees mostly and they need a place to live...
For that price atleast give them a solid house made out of concrete or bricks, not some saw dust panels glued together.
Lol just like a kid's idea to make a house😂😂
Thats why they get easily blown away by tornadoes
Agreed
We built our home. Its all brick with stone on front entry way. My husband layer it all. Layer all the tile and stone work inside and out. Built the fireplace. Custom and quality. For 25 yrs he worked on mansions in Naples, Florida. He's done this his whole life. Totally professional. We moved back to the Midwest and built our current home. We love it. Plus, it's paid for.
I just built my house out of habel bricks and concrete with rebar. My house is gonna be here long after I'm gone damn it. None of that wood and sheetrock and Vinyl siding.
I like how corporate america getting into the housing game is completely glossed over. They are buying up every home on the market handing out cashier's checks
Thank you. I read an article about this very thing in December/2020 in the Wall Street journal.
...enabled by the Federal Reserve!
Thank you...this video is hardly telling the actual truth of why the housing market is the way it is.
And?
@@boulderbash19700209 the problem is they trying to get ppl to rent because the elite want us to own nothing and be happy ...
Inflation plays a major role why houses are so expensive, Most times it amazes me greatly how I moved from an average lifestyle to earning over $63k per month, Utter shock is the word. I have understood a lot in the past few years that there are lots of opportunities in the financial market. The only thing is to know where to invest…
I agree with you and I believe that the secret to financial stability is having the right investment ideas to enable you earn more money, I don’t know who agrees with me but either way I recommend either real estate or bitcoin and stocks.
I keep wondering how people earn money in financial markets, i tried trading bitcoin on my own made a huge loss and now I'm scared of investing more.
@@Jessica-bv4ws That won't bother you if you trade with a professional like *Mr Gary Mason Brooks* my consultant. I found him on a CNBC interview where he was featured and reached out to him afterwards. He has since provide entry and exit points on the securities I focus on. I basically follow his trade pattern and haven’t regretted doing so.
@@izagdlife You allow people to trade for you? that's interesting, I would love to learn, hope it’s safe?
Wow I can't believe you guys are discussing about Gary Mason Brooks , I once met him at a conference in California 2019, just before the pandemic. I can testify that he’s very good in trading..Highly recommended.
We don’t have enough people, yet we have a “housing shortage”. Maybe we should think about NOT allowing companies - ESPECIALLY FOREIGN COMPANIES - to purchase homes to use as investment properties.
The real problem is companies right here at home. Laws against foreign buyers are ineffective b/c they make up only a small portion of speculators.
Yes it's only a small amount of homes purchased by foreign money. In Palm Beach we have $60M homes up and down. They are empty and owned by foreigners. This will only affect the top 1% they will be the ones paying more.
I work in the HVAC trade and the only recent new homeowners I see are all foreign nationals......
Very truth or limit them from how many they can purchase.
Too many boomers are not dying.
The joke is that the houses are actually pretty poor quality-wise.
Right, nothing is made to last anymore.
@@eharvey I mean USA houses are notorious for bad quality
Usually because the materials are from China lmao
@@jeeess9979 Agreed lol
Its build in American style, what are you waiting for? it just has to be huge and look luxurious, the rest doesn't matter
30 years ago i could afford my parent's house in cash. In today's money, that amount couldnt even buy you a car.
I know what you mean. I bought my current home 25 years ago for $64K (was a fixer upper). I was 26 at the time. I put down $30K and paid the rest off in 2 years. We'll never see times like that again. I feel bad for the young people these days.
@@jamescrud house in Canada even a fixer upper can be over 750k😭
@@jamescrud BuT yOuNgEr people are just lazy and dont want to put in the work to buy their own home..... i hate when people out there say this especially with your given example. Housing used to actually be affordable. How a days its at least quadruple that, and then renting is also WAY more expensive. How are you supposed to save up for a down payment in some places when rent is $1000+ per month
@@peachulemon Not in Calgary. You could get a small mansion for that price.
@@MyLittleGreenHairdedMermaid yeah its crazy, I live in a small town where the usual monthly pay is 1300$ full time and the rent without electricity water and internet is roughly 1500$/month
How rich can you be to buy an apartment like that, one year savings won't get me that.
Lol, with your monthly salary you can't archive something like that.
Being an investor is a brilliant way to increase your income, I'm into real estate and Crypto.
I am actually looking for a good trader to help me with my investment, any ideas?
@@marcofox4249 I am trading with Mr Carvalho, he is among the best traders from the UK.
@Goodson Thomas Nura Carvalho.
As an American who's approaching 30, I'm at peace with the fact that I may never own a home. My job and career prospects were never good to begin with even if I got a college degree. There's a big difference between being poor with debt and poor with no debt. I wish anyone buying a house nowadays the best of luck. Some of these houses like many apartments are ridiculously overpriced.
seeing you from another video, stay strong brother, we are going to mak eit
They get you with the term “homeowner”. Miss a few payments and see how much of that home is actually yours.
Even HOA are seizing home for missed HOA Payments.
@@annowens5019 Yeah HOA fees are outrageous, often surpassing property taxes.
This is true. I tell people all the time. You own your home! Lol
🤣🤣🤣
lol
Is the US running out of houses, the answer is no. The issue is we have to many investors buying multiple houses which in turns makes individuals looking to buy a home harder.
Nailed it. Increase the mortgage interest rates and cap rents. See what happens to the housing market.
You can thank quarantine for that. Millionaires began to make RUclips channels and told their stories and Middle Class people were inspired to go into investment.
There really should be a rising tax penalty for owning but not themselves regularly living in multiple land plots, especially in places that are statistically in demand from buyers who own at most one house (which most times they'd be selling off).
First time home buyers should have some advantages over those b.stards who buy homes for making millions.
That’s not true, investors themselves don’t make homes go up in value. Speculative investors are just trying to cash in on a rising market. The only thing investors may do is accelerate a bubble. Ultimately we need more housing & for the pandemic legislation to end.
The fact we have accepted the 30 year loan as a standard for owning a home is scary. Just look at the median home prices in CA and median income. It is just not sustainable.
they call it a Mortgage for a reason! because you are paying to off until you are in a morgue!
if you think the US is expensive, you may want to stay away from Asia. lol They earn like 20k a year, and their houses are more expensive than US.
You're mortgaging an appreciating asset. It's not scary.
@@MrBibi86 false
I anticipate them changing from 30 year to 40 year mortgage. The new thing they will do.
When u have companies buying houses so that they can rent the houses to single families..... I cannot compete with a company 😱😱😱
This is capitalism. Unfortunate results for those who don’t corral all of the money for themselves.
@@jkeelsnc this is greed, not capitalism.
@@yurichtube1162 capitalism encourages greed and this type of behavior. It enables it.
@@jkeelsnc there needs to be laws in place to prevent this blatant abuse. Everyone who works hard deserves an affordable house. Even the smallest, shittiest houses cost a fortune now. This is an injustice!
@@jkeelsnc capitalism is greed lol
I remember when Covid started I was thinking, "Yeah, I'm going to get me a good deal on a house now."
Actually it was a good time to buy at that time since a lot of them were ABNB people forced to put the house on sale since they cant afford the mortgage payment anymore due to covid. I remembered searching for home around March and April, some of the listing were 200k off the high.. Problem now is, young people in the US arent competing with other Americans but Indians and Chinese. All of whom will pay in cash and above asking. These people pretty much sold all their assets in their home country to get property in the US. At this point, these people already lost 50% of their wealth just getting the money here. Buying property above asking means nothing if their wealth will forever be protected.
Not until they printed all those trillions of dollars
@@hydroaegis6658 You have no idea how wealthy the US is compared to the rest of the world. The government has printed 48% of all money in the last 2 years and yet interest rate havent increase much. Consumer products on the other hand have double or triple these past year partly due to covid as well as more money supply in circulation. The more debt the US continue to pour into the market the more foreign institutions and governments are willing to buy them at little to no gain because the US is the only safe market in the near future. Why do you think Rich Chinese and Indian are so desperate to get their wealth into the US at any cost even if they lose 50% of their wealth doing so. The US is the only country that will weather the coming storm better than anyone else.
I did
same i thought alot of old home owner would get it , than again hence why America quarantined
"Buy a fixer-upper" HAVE YOU SEEN THE PRICES ON LUMBER AND OTHER BUILDING MATERIALS?
And of course, all those new home builders are going to just absorb the cost increases to make their product more affordable compared to those "little people" who buy homes that need work. Your statement makes ABSOLUTELY NO SENSE.
Moral of the story? If you can't afford it now, you shouldn't be buying now. Markets that crashed in 08 and 09 will be the same ones that crash the next time. The safer markets that did not suffer the drastic losses will maintain their value...you know, places like boring cities such as Buffalo, Boston, Pittsburgh, Wadhington, Baltimore, Kansas City, Milwaukee, Minneapolis.....
Sure, Miami, Atlanta, Phoenix, Austin, Los Angles, Seattle, Portland and Las Vegas have that brash "cool factor," but, like we humans, "cool" gets old fast when reality sets in.
@Albert Felsen no they didn’t idiot. It’s good advice if you can’t afford a fully renovated home. Frankly the boomers had to work hard for those homes, they had to work a lot less hard then people today to afford the same mcmansion but they still had to do hard work. Discrediting that they worked similarly hard and were able to afford more due to the increased construction and lack of NIMBYS isn’t really helping or a fair thing. Crap on the boomer all you want for real things but they did work for those homes
@@LucasFernandez-fk8se Boomers wage to cost of living was much better then it is today, company's would go to boomer highschool's offering employment packages and good wages to try and find employees. Today your lucky enough to get a job at wallmart making minimum wage out of highschool.
Boomer era was a employees market, today company's just issue work Visas instead of giving raises.
My home needed some cosmetic issues(blinds were a little funky/ new flooring would be nice/ repainted some rooms)
But I wouldn't buy a home that needed more work put into it than I what I bought it for.
Why buy in 2021 and lose 20% value in a year. Europe has been dumping LUMBER on the COAST OF FLORIDA. Some Builders are making retirement money. If there was a shortage of lumber you would not see pile of lumber from Coast to Coast. 2021 HOME BUYER ARE screwed because their insurance and taxes will be at the inflated price. Their houses will lose about 20percent in value in one YEAR.
I'm not buying a freaking matchbox for $400,000!! Its even worse now if you're single. My 800+ credit and 20 down doesn't matter anymore. I wish I bought back in 2018.
Because there are so many billionaires and corporations buying up property to drive up the prices. There, I solved your question in one sentence.
Explains why I can’t find a home to buy. They are over charging on everything.
Wait for the crash. You’ll get a nice house for dirt cheap.
@@rastock9894 Crash? There is no crash coming. Jokes on you.
@@Legendary_UA we’ve had our 1920 pandemic. Now we’re waiting for a 1929 crash.
new houses being built all over the place for very affordable prices in sunnyside subdivision near the medical center in houston texas.
Houses are being bought off by hedge funds and wall street, part of the Big Reset scheme where they will eliminate low medium income class from having a home.
This is a problem everywhere, hello for New Zealand. My house's value has doubled in 5 years(not a good thing for society). If i had to buy it now i couldn't afford it.
Did your property taxes doubled?
Same story in Europe (Netherlands). Unable to buy something for starters. Sad but true. The future of housing is dark for young generations.
Wasn't a problem with the previous administration... things literally changed 4 months ago when Biden took office
@@jackstapleton7337 its all over the world now. Biden has nothing to do with it.
@@nstl440 Incorrect, it spiked 4 months ago when he took office. Cost of living has been up around the world for the past year. These are facts and will only get worse with his capital gain tax increase proposal among other things. Gas has doubled around the entire country motivated by this administrations own self-interest overseas. Nothing to do with the pandemic.
Thank goodness I bought homes during the Recession. $60K for a 4 bedroom two car garage two story home. Banks were giving foreclosure homes away.
I bought my house just before the pandemic and I paid 359K. The asking price was 325K and at that time I though I paid too much. Overtime and after the pandemic my house has reached 450K+ or more. It's bizarre a chunk of house like this should cost 225K no more.
A house costs what someone is willing to buy it for, it can't cost XYZ because you think it should. That's like saying a painting sold for 5 million should be worth $10
nice price. here in Australia you would pay $1 million +
This video tried ridiculously hard to tip toe around the fact that the Federal Reserve has lowered Interest Rates to 0, is currently purchasing 80 billion dollars in Treasuries, and another 40 billion in mortgage backed securities. They also failed to mention the eviction moratorium and money printing (look at M2) boosting the inflation rate.
this is the correct answer, 0% interest means its as cheap as ever for investment firms to buy these houses. fed needs to knock it off with this free money and raise rates already
You expect a bunch of dumb people to know about this stuff?
exactly inflation is here
@@GhostofTradition Inflation has been here for the past decade, but it has been hidden in plain sight in investable asset markets which is ignored by the general public (and CPI statistics).
Nothing to see here. Move along, citizen.
In less than 2 years, my home has appreciated in value by $135k. Insane and troubling.
Ya can be a good and bad thing depending on the state you live in if the property tax shoots through the roof
My house in Canada did 125k in 6 months. Can you imagine!
@Wordlife Wordlife The thing is, it wasn't an appraisal. It was a property tax assessment that readjusted what i owed. I suspect the home is worth more given what people are paying for neighbors' homes.
You should be celebrating not complaining.
@@halfvolley11 if he doesn’t plan on selling he is just empathizing with potential home buyers.
It's so frustrating to constantly hear 'there's a labour shortage'. No there's not. There are people out there who are willing and able to do the work, they just refuse to do it for free. There isn't a 'labour shortage', there's an 'exploitable population shortage'. Try paying a livable wage and see how many people will build you houses
THERE IS NO SHORTAGE OF HOUSES! My boyfriend's mom and I drove around for about 45 minutes to an hour around our town and found an entire list of abandoned houses that are not on the market. Almost all of them were in livable condition. Some of them are pretty nice. There is no shortage of housing. There is a massive amount of people holding onto houses that they don't live in and they won't sell because they think they deserve more than it's worth so they won't even put it on the market.
people don't own those homes, hedge funds and banks do.
just go in and squat
@@shysweet5439 that's true as well!
@@naegleriafowleri2230 In some states you could be legally shot for doing that, it depends on how the Castle Doctrine is interpreted.
Agreed. The narrative that there's a housing shortage is a lie being told to keep certain demographics from becoming middle class. This whole video is chocked full of lies.
That said, here in America housing is entirely too expensive because they really don't want lower class folks becoming middle class. They keep building these expensive, very exclusionary suburbs that are pretty much only filled with high-earning white families who don't want to live near black, brown or disabled people. Why do these videos never address this?
In most cities the black, brown and disabled are housed in awful apartments and high rises while the monied whites enjoy their posh, sprawling suburbs and in some instances, their multi acre rural homesteads. It's so maddening.
"Why houses are so expensive in US"
Hong Kong: hold my $300k parking lot
The difference is HK is a city, and the US housing market is vastly larger
@@abusharmoota202 That's like comparing NYC real estate prices to the average in Mainland China.
@@abusharmoota202 Australia here for a 3 bedroom house in Sydney is about $800k+ and thats not in the city
🤣🤣🤣🤣
300k honestly sounds very low for Hong Kong...
“Get out of renting or your moms basement and get a home! What’s the problem?! You can’t compete with a national financial institution with an infinite money supply? Pull yourself up by the bootstraps!” Baby boomers
Renting is better if you're not staying in the same spot for a very long time.
Not everyone wants to own a house.
Don’t forget builders have zero incentive to make modest houses. Everything is “premium” for maximum profit.
@@MrJamesLuz because consumers who can afford that land also demand premium amenities.
"When I was your age, I paid for college, bought a house, and raised 4 kids all from washing dishes at McDonald's".
-my parents-Baby boomers
Easy awnser: Because your system is broken. Now you suffer the consequences of unregulated capitalism.
"Let's continue to build town homes and apartments that looks like a rectangle with a triangle roof"
And too small
Lol
Everything is upsidedown in this crazy world.
Specially in America 🇺🇸
Hyper normalization
That's because Humanity is upside down. Failed, ignorant, slow, greedy, and often stupid. We are capable of more but we don't insist that those who are in positions of power be the best people (and we don't always insist on it from those who are "stuck on stupid" in general). Until we do nothing will get better. Also, keep in mind that those who have the Money rule. Nothing changes that (short of WWIII).
Yes everything is too high now. The stock market, real estate, and even with the "crash" in cryto Bitcoin is still up over 15 million percent. America is in debt 30 trillion and 80 percent of families live paycheck to paycheck. The only thing you can do is live below your means, even if that is your parents basement until you save enough cash.
@@ASS_ault and wages in this country are lowest which is why nobody here can afford them. Cheapest place to rent is too expensive, and you have to make 3x that to even get the place, when its hard to make just enough to afford it. Homelessness is on the rise in america.
People in Ontario Canada are laughing at these “high prices” 😂😂😂
As are all the banks and real estate agent's .
For people who buy good district, the very least starting point is usually $1m
@@joe6487 if u ever saw new York city u would cry . even in bad neighborhoods u can't find cheap homes.
You think that’s bad? Trying living in Switzerland
I know. A home which would've costed 450 k in 2013, now costs 1.1 million. And the 300 thousand immigrants that are expected to come this year, is just going to make the situation even worse.
It is literally a nightmare out there in Ohio. My wife and I have been looking for months, and we refuse to pay these inflated prices. We're blessed that we already have our starter home, but just wanted to move to the next stage in our life. 🙁
OK but how is this a crisis you do realize that home building is based on buyers so you’re going to have high prices in one area of the country in which they sell their house and then use the spread to buy houses that are much more expensive in another area than they were just a few years ago. How else would it work? The houses that are much more expensive in the area that you are moving to are still much less expensive from the area you left
Another problem that I realized you Americans have is that incessant need to keep moving from place to place every 5 or 10 years just for the hell of it lol
I been living in my starter home for over 30 years. Cheaper property taxes and I do all my own handyman work. No way I want the higher cost of a newer larger home. Don't have to have insurance without a mortgage either.
Houses in USA are perhaps the cheapest in the Western and Developed World. I don't know what CNBC is smoking. Here in Toronto, Canada, any single detached even 50 km far from downtown Toronto would cost you 1 MILLION.
where did you get that data?
Housing is so f**king expensive!!! Most of us younger people will never own a home 😭😭😭
Why not? First off you need to get married second off you need to pay off your student that first then you need to save 20% my stepson and his wife have done all of those things by their fourth year of marriage if they could do it why can’t you?
@@Ryan2022 not everyone wants to get married and have a family. Why is that required? That just incurs more expense.
@@jkeelsnc it incurs two incomes
@@Ryan2022 it also incurs double Expences
The problem is the FED. They are still buying $40 Billion MBS plus $80 Billion Treasury notes and bonds every month. Printing money benefits the rich not the poor. The stimulus checks are not helping poor people as they do not own the assets that are being inflated.
I am genuinely curious about your perspective? I personally support the checks going to people however a majority of the stimulus package from both this and the last administration are funneled writings of big business interests
The better title: why houses in US are becoming so expensive
@@SD352-68 true, one of the reasons why I would like to live in the usa is because of the houses. So big and affordable. You don't see that in the netherlands
Not everyone has half a million dollars hanging around
La vraie question serait plutôt :
"Pourquoi les américains sont-ils prêts à dépenser autant d'argent pour ces espèces de baraques en bois moches et alignées en rang d'oignons ?"
(je ne l'écris pas en anglais parce que c'est méchant 😏)
@@TheAvsouto And even less people pay for houses in pure cash lmao
@@davidmartineztorres8731 Haha, same thoughts. Greetings from germany :D
The government helps to keep supply artificially low so it can be more heavily taxed due to inflated values.
Criminal enterprise!
Texas government lives off of property taxes. $7000+ a year for an average non-luxury house just for taxes.
Young adults are screwed nowdays because of the low interest rates.
How does that work. I bought my home at an interest rate of 8 percent. Three years later, the interest rate was 16 percent. How was my high interest rates better???
@@chrisgraham2904 Young adults cant even gather enough capital to pay the downpayment nowadays, because prices exploded (due to low interest rates).
At the same time wages stagnate.
Here where I live, you can afford 3 squaremeter every year with the average wage (assuming you have no other running costs).
But since you dont own a house/flat yet, you need to pay rent.... so good luck with gathering enough money for a down payment
@@master8127 If you are in the position of working a minimum wage job, ($14 /hr. in Ontario) there are many things that you will not be able to afford, including ownership of your own home. That is unchanged from 50 years ago when the minimum wage was $1.50 per hour and a modest house was $100 K (July 01, 1970). Many individual young adults and couples are earning a far more livable wage, but they are still failing to afford a down payment for a home due to other lifestyle choices. Analyzing and readjusting priorities in your life can often result in a process that will develop reduced living costs and the opportunity to save money.
@@chrisgraham2904 I am not talking about minimum wage. I am talking about studying and not being able to buy a normal home in a mayor city where you are going to work
@@master8127 I gave the minimum wage example to show that it wasn't that easy 50 years ago to afford a home then.
I was making $4.84 per hour in 1972 when I bought my house. If you, or you and a partner are making a combined income equal to $40 to $50 per hour ($8,000.00 per month), you should be able to enter the real estate market. If you have planned and educated yourself accordingly this income is reasonable. If you have this income, but still feel that you are not able to play the game, then you need to have a hard look at your current lifestyle.
its even crazier here in Vietnam, especially in big cities where its almost impossible for a working-class person to get an apartment, let alone a real house lol
Time to go back to village hut life eh? Bwahaha
Ill trade u my house in america for one in vietnam
I hear you, the thing with Vietnam is that it is a developing country so the the regular “working class” jobs don’t normally have good pay while most people are clustered in HN and HCMC. But if you’re smart with your money, able to have multiple incomes etc, trust me, housing in Vietnam is alright. Ain’t no way it is comparable to North America. Vietnam is in good shape
Vietnamese also don’t have much expenses and taxes on them
A house in downtown Saigon is $1-3 million US dollars. But same size house 45 minutes away is $200,000.
Millennials: Everything is a disaster and were used to it. Just sipping on this margarita while everything burns around me.
Lmao iknr, don’t worry were gonna fix this whole mess after the boomers, and make life easier for people ✊
@@jake4024 Sounds like handouts when u say "for people." Not sure what you're referring to.
Yes, I'm a millennial myself.
@@jake4024 No you’re not and you don’t even know what a boomer is
@@94fleetwood94 higher wages, restructuring of our education system so people are not left with useless degrees and debt. A strong social welfare system to catch people when they are down on their luck so they don’t end up being homeless. Reforming the immigration system so we only accept productive people that are helpful to society and not just leech off the system. There’s so much to be done the country is a mess right now.
@@Ryan2022 Baby boomers born between 1946 and 1964. They experienced the best of America before it fell into the hands of greedy lobbyists. 1960s was the sweet spot of capitalism. Why do you think the term MAGA was so popular with them.
The problem in my area is, 1,000 per DAY are moving here, the entire damn country thinks they can live in Central Florida causing a shortage of houses and apartments, and raising rent and prices to insane highs, plus traffic is a nightmare, public transportation sucks, and crime continues to worsen.
My sister bought a house in March of 2020 when interest rates dipped but houses didn't start getting expensive yet. The value of the house has gone though the roof since then.
I think I'm just going to buy some land and then purchase one of those mobile home offices and call it a day.
Make sure the zoning allows you to have a mobile home where you buy. Also make sure you have water &legal access to the property. Don't forget to do a title search, so you don't buy from someone who doesn't really own the land. You may need a generator or solar for electricity if there is no grid access.
@@robinlillian9471 Great advice. And no one should feel intimidated my these things. You hire someone who can make the whole process simple and easy. Get a land lawyer they will deal with all the paper work, all the rules and research and get it all sorted out for you.
Then you just pay for it.
Septic tank, get a power line ran to your house. It'll cost thousands but be worth it.
Uncle did it, not that big a deal just gotta hire the right lawyer to take care of all of it.
Bought a piece of land for 8k, had a smalll tiny rancher home built for 35k,hired some mexicans to do it for him. and about 22k in fees for power, septic, internet ect.
Not a big deal.
@@crazytech5755 how long ago was that? It costs $20-$40k just to drill a well here in central Texas.
@@huemann7637 He didn't drill a well, and this was 6 years ago. He has three MASSSSSSSSIVE water containers that capture rain. They are so big it's insane. You could go swimming in each one lol.
Those cost about 680$ each.
Then you can do the simple plumbing yourself from watching a youtube vid or two. He got a nice air compressor, like a big time one made for buildings. It'll turn on and maintain pressure in the system. pretty cool actually. And a simple filtering system for the rain water (you can already drink it perfectly fine, but it taste better filtered)
Yeah, I would put my money into land.
I think part of the issue is the problem with rising rent cost, if I could have a fixed rent for at least 5 years I wouldn’t look to buy a house
that is why it is better to buy.
Governments NEED to allow unrestricted zoning for smaller homes
It's no government right but a real estate company monopoly game.
then you would have developers buy up all the homes, tear them down and build more apartments.
Single family zoning is NOT the problem. We end up losing precisely the type of housing people want, increasing the price of surviving homes. We need to bring back the idea of the starter home, a modest 1500 sq ft detached home on a 6000 sq ft lot.
Yes it is it prevents to built any other houses. Especially in areas like San Francisco,Los Angeles, etc need other types of housing to create affordable living plus suburban homes don’t make enough tax revenues to pay for their infrastructure.
I do agree about the “starter house”. But I already see that as more than adequate to begin with. I wouldn’t aspire to move into a larger house after that because I don’t have any use for it. I live alone so why would I need more than 2 br and 1 bath?
@@jkeelsnc My wife and I are fine with 1400 sq ft, 3 bed, 2 bath, plus her art studio and a 2-car garage. No common/shared walls, 360-degree light and ventilation, greenery, permeable soil, etc. She has always worked from home, and I have happily been doing so during COVID.
@@jalifritz8033 Just how dense and defoliated do you want housing to be? People vote with their feet by moving to suburbs and exurbs, driving that "sprawl" you evidently hate, in search of that great American tradition of "elbow room." We already have lots of multifamily housing in the big cities -- my question is why should we expect or want them to keep growing and packing people in and destroying established lower-density residential neighborhoods people chose and invested their hard-earned money into?
All most people need is room for a bed,small bathroom and kitchen. Maybe rezone for small homes. Why people think they need mansions and have to fill them up with junk they don't need and pay for it the rest of their lives is insane.
idk bro i have a farm on 20 acres 5 small bdrs paid 180k 2018 now worth 260k kinda nice having pond and private land to just chill on yourown with fam id suggest investing in raw land possible getting a home built on it in the future ...but to each his own
The homebuilders are the ones deciding people need mansions. That's where the profit is.
Nobody wants those though. Who wants a small bathroom and kitchen, and who just wants a small bedroom. You want bedrooms for guests, a chefs kitchen so that you can experiment, and multiple bathrooms just in case you need them. Rezoning should continue to be for mansions unless it’s in a low income area.
@@georgebalan6201 If infinite growth on a finite planet was possible, we'd all be living in mansions, driving monster trucks and pumping out babies. Why do people feel they are entitled to consume as much as they please?
@@driftlesshermit9731 Nope we wouldn’t. Gas workers and others wouldn’t be living in mansions, they’d be living the same way. People aren’t entitled, they work to get a certain amount of money and with that money should be able to do whatever they do please.
Other states: Californians coming here and bidding up our housing market!
Californians in 2013: people coming here from other states and bidding up our housing market!
Such an accurate comment. Millions were never from California to begin with.
Very true!!!!!!!
Then why is the market in California rising to sky high if so many are leaving. Median house in CA crossed 800k
So much can guess cause the value of space or house that is there. homes get updated so add value to a place anytime. location and whatever else. so alot factors why homes cost so much anywhere.
@@Striker50_ yep. Only way to save up for a California house is to do it in another state.
Is there something inexpensive in the States? Education, Healthcare, Housing, it all appears to be so unaffordable.
Unfortunately it seems like the basic things that one needs to live are crazy expensive. This is when you are happy to live in Europe 😔
@@perthfanny3017 A $50 co-pay to see a doctor once a year is expensive? You people are ridiculous then yes that’s expensive the amount of money I save and lower taxes in the United States as compared to someplace like Germany will allow me to retire in style unlike Germans
@@Ryan2022 it is common knowledge that the US healthcare system is very expensive (because it is not paid through taxes). A 50 dollar copayment? This only works if you can afford health insurance... I am not sure someone on minimum wage can afford health insurance even less the full cost of health care paying everything out of pocket. I guess in Europe we see access to healthcare almost as a right whereas in the US it is a luxury. Even though it is a luxury, the privileged think it is affordable for everyone...
It is just my personal opinion but I'd rather not have to worry about being able to pay for chemo if I have cancer or getting an operation. Even if that means paying taxes.
@@perthfanny3017 86% to 90% of native born Americans have employer provided health insurance. You have no argument
My home is already worth what I thought it would be 20 years from now. My wife said we should sell while we can get the money and get another place. I told her no way because it will cost us all the money we make plus more to get our next home. We wouldn't be any better off.
@Don't Be A Debt Donkey we would definitely get back what we put into it, but the problem is not enough supply to go around. We would have trouble finding a new home and would have to get into bidding wars to buy something else.
Everyone is hodling their houses 😂😂😂
Rich people and other real estate people are buying the homes up and renting them.
Don't sell, diamond hands!!!
YOLO! 💰 💰 My house is going TO THE MOON!!1!🌙
Hodl!
Much wow 💎🙌🏽
This is what happens when you flood the market with cheap money. You see this everywhere around the world. Investors buy property in search for yield, consumers borrow more because simply they can afford to. And that's how the cycle continues upward. I just bought a house in a record year in the Netherlands, prices have never been this high. However
my interest rate is 1.29%, which is still cheaper than renting.
And I thought I was killing it, but getting a 2.25% rate 😭
That coupled with the threat of high inflation is making anyone with any cash gobble up stocks, property, crypto and everything else in between that has real value.
@@Charlesbjtown cus your black
Well, where is the bad thing there? In Netherland you have a shortage land too !! you'r going to pay a lot less in interest and expenses arround your mortgage because the I.R is low
You should not complain about a situation where you are getting beneficiated xD
And cheap money creation is theft.
If you can’t afford to buy a house. Save and invest in the stock market in low expense diversified index funds like VOO or ESGV. Invest the same amount you would pay for your mortgage, interest and taxes to get use of o your budget.
Which bridge should I live under meanwhile?
Or just move to an other country where u can buy a nice house for half the money u will pay in the USA..bigger property and cheap labor..just think out of the box.
@@danielbuezo9910 , if we look at the data, more and more people are living alone and the houses have become bigger and bigger. These effects are hurting the supply problem. Low interest rates inflate prices. Honestly, roommates if you can swing it.
@atombrain111 This is true that many Americans don't have regular savings. I don't know the best advise, but I'm a fan of living car-free because car expense is really high for poor people. I'm a fan of bike commuting. Not always easy in parts of the US because the US is poorly designed. Ironically, medium density housing can improve affordability, taxes, affordability, transit, pollution ,ext.
Yea, the market blew up... I paid $229K for my house... and looked it up and now it's worth over $400K.... I don't think we are going sell any time soon as we both know, if we sell, we cant find another house like this one, even though it needs a lot of updating...
This is why i live in a rundown trailer out in the middle of nowhere. Probably gonna have to wait another 25 years or so till the market gets flooding with empty boomer houses.
Chinese investors will easily outbid you
More like skilled immigrants will outbid you, especially since they're not as picky about the exact neighborhood or physical condition of the home; they're just glad to have a place in America where they can access their business and fellow expats.
Yep, sometimes I think why not buy and live in a big caravan or tiny home and have no mortgage. The regular housing market is doomed.
I'm in a run down double wide out in the middle of nowhere on 5 acres with a pond. Sitting back laughing at all these city slicker townies
Sorry. Us boomers will give them to our children and grandchildren.
The biggest problem is when renters and rich class Americans and foreigners are buying property and housing flipping it, or renting it out.
That’s not a problem, that’s just smart to do it this way
@@melinda67 smart way for only one persons benefit profiting off from family. It’s not really beneficial for economy. As people raise rent a lot of people will move away. Where as someone who buys house, retains mortgage over time, which is a consistent money for the government to fund programs.
@@melinda67 Easy for those who HAVE a home, hard for those that don't.
They do it because there are people willing to pay for it. Simple supply & demand economics.
@@stratplayr6997 Its a balance to having too many renters in a neighborhood. Renters in the lower brackets take/destroy value out of the neighborhood & upset the few remaining homeowners. I deal with that pushback being a black male fully paid off cash, working 3 days a wk.
Its old angry white folks mad that they paid a 30 yr mortgage back in the 50s & they gotta deal with millennials like me :-). Like its my fault the govt drew a REDLINE around the whole neighborhood...Just ignorance..
They missed two of the biggest reasons houses are expensive. 1. The two family income and 2 because of low interest rates people are keeping their house as rental property which accounts for some of the shortage.
All the reason that interests rates need to be higher and kept there.
They are literally punishing people for having 2 income households.
@@vulcanraven9701 most 2 income people punish themselves by their own spending habits.
@@TheRealEdStoner that's just ducking the unaffordable housing crisis
It is called American dream, because you have to be asleep to believe it.
Upbeat CNBC music over coverage of hyperinflation is really something
Hyperinflation is when one asset class appreciates slightly faster than usual.
Made with cheap low quality materials, still the most expensive houses
Yaa I always wondered this here in Europe and Asia all of our houses are made up of solid concrete does look and last for a long time no leakage no disturbing your neighbor there's no problem and when I visited america all of your houses are made up of wood like a stupid weak tree house how do you guys even pay that much for just wood??
And wages haven't gone up in the same fashion. At this point I'll just make my money and retire to somewhere like South Africa.
America is a dead country.
America is full of board houses. I don’t know how people can comfortably live in a board house, much less spend so much money to acquire them.
@@lukario2393 wood is the most durable resource there's trees that naturally live for 1000s of years. Wood is also a renewable resource that actually benefits the environment during tree growth. Concrete is extremely destructive for the environment. It's much better for homes to be replaced then represent a permanent barrier to the natural environment.
Success is about focusing Your energy on what creates results and using what you already know
@Ben Alex Joe You are right sir
Seeing you guys making much money trading got me wondering what I’m doing wrong
Face book ☝️
Insta gram ☝️
He's success story is everywhere
My parents bought a house for 350k 3 years ago, now its worth 700k. Prices are skyrocketing and its insane
@Housing Analyst what?
@Housing Analyst what?
@Housing Analyst what?
@Housing Analyst what?
@Housing Analyst what?
Big investment firms swooping in on any single fam house for the last 10 years and renting them out isn't helping either
Rent or leasehold. Why sell a house once when you can sell it over and over? It's one of the few cases of companies planning for things that last longer than their CEO's career plan.
That is actually the bigger problem. We have houses out there, but not people living in them because they are being rented. There are plenty of available housing for millions of Americans out there, but we have such a small group of people buying places they aren't living in too created demand and profit. This story is skewed to make it seem like people are not trying when it's mostly manipulated by people with higher disposable incomes hoarding supply.
Then pick one of the big investment firms and buy a few f their stocks, if they're doing so well! What is the problem?
I think a major problem for first home buyers is that there are a lot of wealthy buyers. If there is a home purchase quota per person (limit the number of buyers), then home prices can be more affordable.
I'm Cuban and I know I've seen ideas like yours play out in practice. I can't remember where. 🤔
I think so too! There should be regulation on the number of homes one can buy especially those business people as an investment or business! The first time home buyers should be given priority to buy! Those real estate investors actually push the house prices up and compete with first time home buyers! Thus, the rich gets richer, and the poor gets poorer! Crazy!
@@bessiekruis7460 Communism has never worked. It is also extremely immoral.
When you invest, you're buying a day you don't have to w0rk
Assets that can make you rich
Bitcoinn
Stocks
Realestate
I almost lost my daughter due to my p00r financial life, all thanks to Catherine for helping me, God bless you abundantly, keep fightin
@@joshnorton4918 I'm curious who is @Mrs Catherine and how did she save your daughter?
It was God who savedd her through Cathy's help, a friend of mine introduced me to her, she manages his account
Fbb::
Catherine S. Woods
So happy I got a house at ease with a realtor.
Let’s just keep building “luxury apartments”!
This, but unironically.
@@MrAlexanderAmes definitely not the answer.
Which are usually poorly built garbage. Especially these 5 over 1 buildings that burn like a matchbox at the first spark. Stick building is a very poor method for large apartment buildings and condominiums. And even though they are built very cheaply the cost savings is never translated to the owner who then deals with all of the drafts and leaks and lack of ventilation in "modern" 5 over 1 cheaply constructed "LUXURY" (laughable) apartments and condominiums.
Don’t let the IKEA furniture and fixtures fool you! These are LUXURY apartments. See, it says so on the sign out front.
@@ddschroe11 loll so accurate
US: Home prices are too high!
Canada: Hold my maple syrup.
hong kong: Am I joke to you....
Ireland : Hold my Guinness
Yorkshire hold my cuppa tea,
Taipei City: hold my bubble tea
Was gonna say this too lol. Small bungalows in the distant suburbs of Toronto start at $1M. Want a nice detatched house like the one in the video? $1.5M - $2M minimum.
While some of this is adding to the problem, single family only zoning is really the primary cause. There is a market demand for smaller, more affordable homes and denser communities, it's simply illegal to build anything but a single family home with a big yard in nearly ~80% of residential zones in America. This also means it's less profitable to build anything but really expensive homes on these large expensive lots. Single family only zoning really needs to go away. You would still have every right to build a single family home with a big yard if you want, but it would allow other people to build a smaller home or a duplex, etc on their land as well. Investment companies who are buying thousands of affordable houses, taking them off the market doesn't help either.
As a european i dont understand how can americans pay 550k-700k usd for a wooden cardboard drywall house. The value of materials seems like 5k - 10k max 🥶🥶🥶
@@vasilbutrakov7330 is that how much you pay to live in your dwelling? The exact amount it cost to build it?
I don’t understand why Europeans stick their nose in our business in order to put us down. Oh, wait-yes, I do know. It’s so they can come off superior to us.
I managed to get my first mortgaged house with my Gf last month after renting together for 5 years. I never thought the day would ever come.... seeing with how many hurdles there is to overcome.
Congrats, similar story … but it was with my wife. It’s a big hurdle to get over, but when you do … good luck to you both!
There’s no way I can qualify to buy a home. Unless I win the lottery and can pay for it in cash
Yea...wishful thinking 💭.
Why not? Are you able to put 3.5% down on a home?
@@WoodT92 no one wants to pay PMI with a lower down payment, sure you can do it but itll cost you more
@@amapnamedpam yeah but why wait until you save 20% when you have 3.5% ready to buy a spot. PMI sucks big time but you can get rid of it once you reach 20% in equity. Saving 20% just takes too long so for me I’ll deal with the PMI to get the house I want
I put 3% down
WTF are interest rates doing at near zero. What purpose does that serve except to pump home values and cause even higher prices in all asset classes. Its such a scam.
Look up the Greenspan Put, it's been going on since 1988.
Interest rates were cut to near zero when the USA economy started tanking, this was to "Theoretically" incentivize more economic growth by allowing more people to take out loans for businesses, buildings, vehicles ect.
Probably because printing more fake money (and giving it to people as credit) at this point is the only way to keep the economy rolling at least until the point that massive inflation sets in. Wat a minute? Everything has gotten a lot more expensive lately. hmmm. We might need someone like Paul Volcker as the fed chairman again.
It really is.
@@jkeelsnc I'm fine with a volcker at this point. At least run rates at 4-5% to give a competing interest to wall street.
It's not that expensive. Old 2 bedroom apartments in Sydney Australia are selling for $900,000 and old houses going for $2,000,000+. Brand new ones going for even more than that. It's insane. To get a 20% deposit just to buy property (20% minimum to avoid mortgage insurance) means we need to save up nearly $200,000 just to buy a $900,000 property. My partner and I are both on 6 figure incomes and we can't afford to buy a house
@Zoey Deu, if you compare to my city or Bay Area, California, Sydney is still cheap. The average house price is 1.5 millions dollars. Adding to monthly payment is property tax, which is around $20K-$25K per year. If you own the house for 30 years, you will pay another $600K-$700K. In Australia, I know there is no yearly property tax.
@Rampant Appraisal Fraud dude. This aged horribly 😆 🤣. How are those falling prices going again?
@Rampant Appraisal Fraud I am 100% sure. I live here buddy.
That’s the market in the Bay Area, CA. There are old 900 sq ft. homes here that have sold hundreds of thousands above asking price. There was even a home that sold $1 million above asking.
The housing market is an issue everywhere nowadays, not just in Sydney.
What’s happening is the exact opposite 2005-2007, back when everyone could get a house. Now, no one can get a house
The housing market is extremely manipulated and prices are inflated
When the bubble bursts, there are going to be alot of homeowners that owe more than the houses are worth
Even if it bursts, if it doesn't come down that much, it won't mean much for many people
@@TheFalseHuman It'll come down 30% minimum, possibly as much as 50%. When the bubble will burst is impossible to predict though.
@@Son37Lumiere exactly, impossible to predict yet look at what you're doing lol
A price coming down 30% doesn't mean much if it has run up 42% given a period of time (1.42 * 0.7 ~= 1)
@@TheFalseHuman
It means it'll be much more affordable than it is now. And predicting the amount they'll fall is an educated guess based on available data. I said it's impossible to accurately predict when the crash will happen but rest assured, it will happen.
@@Son37Lumiere ok, let's say now is already at an unreasonable price. It goes up another 42%. Then the bubble burts and drops by 30%. We're back to square one basically (over this time period).
This is why % of a price dropping doesn't really mean much by itself if the price keeps going up prior to the drop. This is my point.
Ofc, if we assume the price remains constant, and then the 30% drop happens, then yes, it's cheaper now. But given how housing prices are still going up and basically been so for so long now, I think the assumption of the price remaining steady is a bit unrealistic.
In the US Investors like Blackrock are new outbidders - we saw this in Spain/Portugal last decade with investors from China (abnb) and UK (holiday homes), locals could not afford to buy a home in their own city
Those assholes own everything, they’re defo part of the problem but most people don’t know them.
This is happening where I live. Add on the collage students with loan money and everything just sky rockets every year. Residents are being pushed outside the city limits to find affordable housing.
Which is why out of country buyers should be restricted and taxed higher.
The only issues about holiday homes in the UK relate to holiday destinations like national parks and bits of Wales/ South West. There is no conspiracy as implied above - people with money will buy houses wherever they would like to live. Doesn't everyone reading this want their money to be as good as everyone else's so they can buy something if they want it more than the guy nextdoor? The alternative is to have some soviet-style common ownership and allocation system - which frankly will please very few people and give those who are unhappy no choice...I moved house twice just to be in the right school catchment for my kids - a privilege I paid for, but was willing to pay for.
@@jkeelsnc second home purchases ARE taxed very punitively in the UK actually. Both in (~double) Stamp duty on purchase AND capital gains tax on sale. Neither of which apply to homebuyers.
Come to find out Zillow was buying up the houses above cost, and now they can’t afford to sell the houses at a mark up because, well Americans are BROKE! 🤣. Housing bubble is about to burst and I’m ready to buy a house for pennies on the dollar.
Its been like this in Canada for years now and the Pandemic made it worse. Hoping now that people in the US are experiencing a similar issue that pressure for a solution can be found that Canada can use as an example that we can adopt because up here nothing is being done to help more people enter the market.
The problem with getting a fixer upper is that materials are also getting expensive for DIY projects. So, not sure it’ll pay off in the end. Pre pandemic I would agree with a fixer upper.
With the rate this is going I’m gonna build a tiny home 😂💀
@Bardenbella120 Tiny homes are in the 100k + now too...capitalism ruins everything
Or in our case, finding a contractor to do the work. They are all booked up.
@@TimGamble Or you’ll have to offer a lot more so that they’ll put you as priority.
My mortgage is cheaper than renting. I’m very lucky. It’s crazy here.
Just because it's cheaper doesn't make it better. If u don't own it I still a renter.
Most Americans don't own their house or their car. Don't believe the hype!
Cheaper if you stay in an equivalent place for several years. You centrality don't come out ahead until 5-15 years have gone by.
@Jamey Lane Literally any stock index fund would give better returns.
Not saying it’s better. I’m probably a lot older that you guys and been in my home longer. Not hype. Just what worked out for me. I’m not moving. I’m towards the end of my career, not the beginning so I don’t need to be mobile. It’s almost paid for. I’ve lived in apartments. And yes. It is better. Younger people who for their employment need to be mobile, go for it.
I bothered to look at housing prices in my state last night, and it's ridiculous when you compare it to the median household income & how much it has gone up since 2018. I live in a flyover state too which is supposed to have one of the lowest costs of living in the country.
The houses are nothing special either, but the cost is rather unaffordable for a single person or a younger couple. Even when you search out to some no-name town!
Most of the new homes being built are luxury SFR/ townhomes/condos/apartments that are still unaffordable. And the affordable homes are being bought up by wealthier individuals paying all cash so they can use them as rentals.
I purchased a condo with 20% down in 2018 as a starter home, & it has gone up 40% since then. I'd like to upgrade at some point, but the other houses have gone up just as much, so now it doesn't make sense financially. It's ridiculous.
For many years I think land and houses were incredible cheap in most parts of the US. In Bavaria (a state of Germany), if you want to buy ~600m² of land on which you can build, you easily pay 150 EUR/m² (more than $700k per acre). In many places you're past 450 EUR/m² (more than $2.1 Million per acre). That is without a house. If you want to build a new house with ~120m² of living area you have to assume 2.5k EUR per m² or about 300k EUR ($350k for a small house, assuming you already own the land).
Most Americans have zero clue how cheap real estate is in the USA.
For a wooden house it’s extremely expensive
have you seen the price of lumber recently? its up at least threefold
Its shortages. Contractors are rejecting contracts due to shortages
Cheap by Sydney Australia prices!
@@googlearepedos5608 8 foot 2x4s are now north of 8 bucks a stick, and a buddy recently was forced to pay $65 for a sheet of plywood to build a shipping crate. Many, if not most builders have stopped taking orders for new construction, meaning demand on existing housing stock is even greater.
@@machinist7230 hyperinflation is hitting things like lumber first soon it'll be the food and bills that start skyrocketing
Homes are expensive because investors are buying everything leaving families with no options.
Can we all agree they need to stop building those ugly condos in every city. At least make those things affordable as well.
Man, after spending 17+ years of rent money moving from apartment to apartment, I finally thought I could afford a home this year. But Nope, guess not.
I sympathize, I’ve been renting for 8 years and am absolutely no closer to owning a home. I am on the market but with the Last 3 bids, regular folks and families were competing with a multinational financial institution with practically infinite money supply. It’s insane! Renter nation!
Same :(
I feel really fortunate. I bought a condo for $30,000.00 more than 4 years ago. I can sympathize what you're going through.
Owning is nice but the point is to have a roof over your head and am saying this as someone who has purchased shares in a co-op. I probably have a different outlook to renting because I live in a big city where the majority of the people are renters so to me renting is just as good. If i could have found a one bedroom apartment for the same price as my mortgage and maintenance fee, i would have kept renting
@@RizztrainingOrder this is the problem with letting big investors out bid the little guy.
Everyone in the comment section praying for a housing crash lol I feel y'all
never going to happen hyperinflation is here to stay and land is a SUPER valuable commodity.
they just printed 25% of the entire US money supply in the last year alone. thats 25% of ALL DOLLARS EVER PRODUCED.
every time they print money, your money is slowly sliding to become worth less than the paper it is printed on.
Housing crash this is completely different than housing crash of 2008 demand is at an all time high for homes and theirs not enough homes for sale so don't hold your breath.
Me too and I own a home but property taxes are killing me in Texas
@@vjay6667 I've been telling my uncle who lives in Texas to look up here in the upper midwest.
But the "cold" is always the primary reason....after the electric bill of about $8,500 during the winter, I'm curious to hear what he thinks.
I live in a more affordable living costs and better neighborhood than what they currently live in. With the census showing more population moving into coastal states is only going to grow the demand for housing prices and car traffic over time. Whatevers I guess.
This is why i decided to live with my parents in law after marriage. We can share the bills together and there's someone we trust to take care of our daughter while i and my wife are away for work
Same.
God bless yall
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We need to start capping HOA fees too. Some of the fees around here are up to 5 and $600. It’s so unnecessary. It keeps people from being able to afford to live in a lot of the neighborhoods around here. They also should be limited on actions against your home too. I don’t believe that an HOA should be allowed to force you out of your home or force it into foreclosure or put a lien on it unless it’s become a health and safety concern such as hoarding
That would be a cheap HOA in the DC area. I've been looking for houses where HOA fees top $1200 a month. That used to be rent.
I will never live in an HOA house. Too many horror stories about HOAs controlling people.
@@ajb7530 what
It all depends on what the HOA does, read the CCR and the annual report. If the fees are not inline with whatever your getting from the HOA then you can call for a vote to amend the fee’s or for that matter the CCR. I found the best course is to become an officer in the HOA. Just harping on the sidelines doesn’t do much
The HOA should just be passing on the costs of operating the property. Ext maintenance, insurance, utilities, amenities, etc.
Theoretically if you owned a home you would be paying a similar cost.
“I wonder why houses these days are so expensive?”
*shows pictures of 5 bd 3ba mega suburb houses*
If you consider a family of six(2 parents and 4 kids - not uncommon) that five bd house works out just right.
I’ve seen 2 bedrooms in Florida not the best neighborhood expensive as hell.
@@starventure 3 bedroom homes are just fine for 2 adults + 4 children.
I lived in 3 bedroom homes all my life and so did most people of my family. Especially since our parents simply built an extra room in the basement or attic (depends on the home).
Also the oldest child should be ready to move out into the world by the time the youngest grow into the teenage years.
For what it’s worth, I’ve been looking at houses in the greater Seattle area and it’s as much as $600,000 for a 3 bed 2 bath house in some of the cities close to the interstate
Homes are not as expensive to build as you think. Unless it's custom homes with a lot of nice, but not necessary stuff added. For half a million a very large home can be built but it won't have heated floors or marble counters.
Most important factor that have not been covered is limited supply of land through govt laws, regulations, rules.
Whether I like it or not this IS an issue in parts of the country. In the west most of the land is owned by the national park service and especially the bureau of land management. Back here in the east this is not nearly the case. I am not sure how many in the east realize just how much of the land in the west Is held by the federal government. Of course, here in the east where there are cities there is less open land to build on (lower supply) and that drives up prices as well.
Thank God for RV living and minimalism, thank God for Dave Ramsey. I feel sorry for Millennials in America. Greed will destroy this country!!
I do agree with you on this. I’d love to have a nondescript stealth van. The only thing is I don’t want to do without a shower and toilet. However. A wet bath with a cassette toilet would be ok. Just need a fantastic fan in the bathroom after the shower and a squeegee and sponge for drying. Not perfect but it would work.
Wow. I remember getting a house right here in North Carolina back in 2017 for $90k. 3 bedrooms, 2 bathrooms, a bonus room, a decent size backyard and a separate 2 door garage. Thought there was a catch like somebody died in the house or something but nope. House was fine and the previous owner even included a washer and dryer. After seeing this video I need to check how much this home is worth now.
A lot more than that I bet. But I wouldn't sell it. You won't be able to find another deal like that anytime soon.
What's the price now?
You ever find the price?
Price probably around $350k now