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US citizens priced out of home ownership


pellinore

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Posted (edited)

The US housing market has been transformed by rising rents, surging home prices, and a massive jump in mortgage rates, making homeownership seem ever more impossible.

He and his sister are making more money than ever, a 32-year-old insurance adjuster from Utah says. But shelling out $2,500 (£1,960) a month in rent doesn't leave much left over.

“It’s like I’m playing a game that you can’t win,” he says. “The fact that we’re being priced out just makes me want to throw up.”

Such frustrations are spreading, fuelling dissatisfaction and contributing to the widespread pessimism about the US economy that is looming over the country's upcoming election.

The median home sale price in the US has jumped by nearly 30% since the end of 2019, hitting $420,000 this spring.

Trying to buy a house is 'playing a game you can't win' - BBC News

Edited by pellinore
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The amusing thing is that there are more than 17 million vacant homes in the US last I checked.  

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12 hours ago, pellinore said:

The US housing market has been transformed by rising rents, surging home prices, and a massive jump in mortgage rates, making homeownership seem ever more impossible.

He and his sister are making more money than ever, a 32-year-old insurance adjuster from Utah says. But shelling out $2,500 (£1,960) a month in rent doesn't leave much left over.

“It’s like I’m playing a game that you can’t win,” he says. “The fact that we’re being priced out just makes me want to throw up.”

Such frustrations are spreading, fuelling dissatisfaction and contributing to the widespread pessimism about the US economy that is looming over the country's upcoming election.

The median home sale price in the US has jumped by nearly 30% since the end of 2019, hitting $420,000 this spring.

Trying to buy a house is 'playing a game you can't win' - BBC News

Mortgage rates more than doubling has driven the cost of ownership through the roof.  While rates aren't historically high, the price of homes is and has far exceeded wages.   The housing market took off during covid due to the low rates and people seeking to move from Democrat Covid fascist.   Once the pandemic subsided and the fed jacked up rates, they effectively killed the housing market.  However, what they didn't anticipate is that they'd create a "lock in" effect in which existing home owners decide not to sell since it is so expensive buying a new place.  This has created an inventory shortage which has actually caused home prices to increase even more, doing the opposite of what the Fed intended.  

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5 hours ago, Gromdor said:

The amusing thing is that there are more than 17 million vacant homes in the US last I checked.  

1.5 million long-term vacant in the UK last census, and the number is increasing. They are privately owned (some by people who don't even live in the UK) so what can you do.

 

 

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Posted (edited)
12 minutes ago, pellinore said:

1.5 million long-term vacant in the UK last census, and the number is increasing. They are privately owned (some by people who don't even live in the UK) so what can you do.

May I recommend a little socialism?

hear me out: we can also call it anti-neoliberalism, or anti-Thatcherism if you prefer sthg more krass, but

state owned housing has a lot of advantages,

a) it produces a regular income from what people pay most for in their wage distribution

b) one has total control over the rents

c) since you already own it, empty houses can immediately (well ha! as soon as the public servatnts get to it, right; which maybe has its own solution, a part of the income from the rents could be used to hire more?) repurposed

I mean that right there is the solution as 'living' should never have been on the menu for speculations and investments as it can also be used as tool against the country which somehow has to deal with open markets and a housing crisis... I don't know in the UK, but Paris for sure, continental Europe, mafia loves money laundrying through houses, I don't know how much that applies everywhere? Does the UK have a housing crisis too?

Edited by MrsGently
urrrgh all the typos
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8 minutes ago, MrsGently said:

May I recommend a little socialism?

hear me out: we can also call it anti-neoliberalism, or anti-Thatcherism if you prefer sthg more krass, but

state owned housing has a lot of advantages,

a) it produces a regular income from what people pay most for in their wage distribution

b) one has total control over the rents

c) since you already own it, empty houses can immediately (well ha! as soon as the public servatnts get to it, right; which maybe has its own solution, a part of the income from the rents could be used to hire more?) repurposed

I mean that right there is the solution as 'living' should never have been on the menu for speculations and investments as it can also be used as tool against the country which somehow has to deal with open markets and a housing crisis... I don't know in the UK, but Paris for sure, continental Europe, mafia loves money laundrying through houses, I don't know how much that applies everywhere? Does the UK have a housing crisis too?

Ah, the US believes in Capitalism.  The investors that own large swathes of property would never let that idea happen.  

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3 minutes ago, Gromdor said:

Ah, the US believes in Capitalism.  The investors that own large swathes of property would never let that idea happen.  

well since most of them are crooks, gangsters, mobsters, foreign agents or otherwise criminals I'd say: their opinion shouldn't matter as much as the actual needs of the population.

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Just now, MrsGently said:

well since most of them are crooks, gangsters, mobsters, foreign agents or otherwise criminals I'd say: their opinion shouldn't matter as much as the actual needs of the population.

We elect criminal people whose fortunes are tied up in real estate as our president....  

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1 minute ago, Gromdor said:

We elect criminal people whose fortunes are tied up in real estate as our president....  

You mean number 45, the Orange One? yes crooks like that tied up in real estate...

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53 minutes ago, MrsGently said:

May I recommend a little socialism?

hear me out: we can also call it anti-neoliberalism, or anti-Thatcherism if you prefer sthg more krass, but

state owned housing has a lot of advantages,

a) it produces a regular income from what people pay most for in their wage distribution

b) one has total control over the rents

c) since you already own it, empty houses can immediately (well ha! as soon as the public servatnts get to it, right; which maybe has its own solution, a part of the income from the rents could be used to hire more?) repurposed

I mean that right there is the solution as 'living' should never have been on the menu for speculations and investments as it can also be used as tool against the country which somehow has to deal with open markets and a housing crisis... I don't know in the UK, but Paris for sure, continental Europe, mafia loves money laundrying through houses, I don't know how much that applies everywhere? Does the UK have a housing crisis too?

State owned housing produces socialism which, as history has shown, doesn’t work. Best to fix the problem by removing any tax advantages for investors and limiting demand by stopping immigration. 

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4 minutes ago, Unusual Tournament said:

State owned housing produces socialism which, as history has shown, doesn’t work. Best to fix the problem by removing any tax advantages for investors and limiting demand by stopping immigration. 

a lot of the Scandinavian countries and in parts Europe disagree strongly. Cleaner, safer, healthier than many US cities

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7 minutes ago, MrsGently said:

a lot of the Scandinavian countries and in parts Europe disagree strongly. Cleaner, safer, healthier than many US cities

In some places, yes. But communism has failed. Socialism requires higher taxes and no one wants that. Better and easier to just slowly tinker with the most obvious faults in the system, like tax breaks and demand and work your way down until you reach the desired level. The problem is housing has become an investment 

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2 minutes ago, Unusual Tournament said:

In some places, yes. But communism has failed. Socialism requires higher taxes and no one wants that. Better and easier to just slowly tinker with the most obvious faults in the system, like tax breaks and demand and work your way down until you reach the desired level. The problem is housing has become an investment 

34% including health care. US has 26% without healthcare and streets flooded with homeless people....

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3 hours ago, MrsGently said:

34% including health care. US has 26% without healthcare and streets flooded with homeless people....

Try Sweden and Norway that if memory serves have a 60% tax rate. Cannot think of anything more soul crushing than paying that

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Prices are high, people won't buy, prices will go down.  Why does the right complain about capitalism when it isn't working in their favor?

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Again, this is happening all over the world. Not just America.

I heard on the news last night that Taipei is the most expensive real estate on the planet. 

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Idk we must have got way lucky to outright own our joint, we bought within our budget, I suppose some folks might not like the area but I'm okay with it.

But no fears 2024 tRump will steal the election and the second he's sworn in right after he pardons himself gas will drop to ten cents a gal and homes will drop to dime on the dollar mortgage rates will be down around 2,%

Yep that's why BOM will win

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On 5/27/2024 at 3:53 PM, MrsGently said:

a lot of the Scandinavian countries and in parts Europe disagree strongly. Cleaner, safer, healthier than many US cities

Scandinavian countries have significantly smaller populations and are far less diverse than the US.  Those countries have the population of some of our larger cities. 

The US takes in millions of illegal immigrants per year draining our system and also has to play the world police with our military.  Throw in the failing urban culture that doesn't really exist in Scandinavia then you can see that simply isn't an apples to apples comparison.

Scandivian countries are also closer to capitalism than they are socialism.  They just choose to tax and spend on things like healthcare for their citizens.  It doesn't change though that most of the innovation is still born out of the US system. T There is no better place to be than the US for major medical issues.  You may go broke but you'll still be alive.  However, the Scandinavian countries may seem better for routine care and costs.  It is all a trade off.

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On 5/27/2024 at 9:55 PM, Agent0range said:

Prices are high, people won't buy, prices will go down.  Why does the right complain about capitalism when it isn't working in their favor?

That is the way it is supposed to work in theory.  however, the high mortgage rates and prices have created a lock in effect where existing homeowners don't want to sell to move up due to the high prices and rates.  They are choosing to stay put which is reducing available inventory which in turn continues to drive up prices.

Buying a home is one of the keys to building wealth so with so many first timers locked out it isn't good for the long term economy.  Most people's wealth is in their home equity which you can't build if you are stuck renting.

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On 5/27/2024 at 7:17 AM, Gromdor said:

The amusing thing is that there are more than 17 million vacant homes in the US last I checked.  

Not amusing at all.  Are they bought by wealthy foreigners like in Canada who leave the houses empty to rot?  It's ridiculous.   

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On 5/27/2024 at 9:17 AM, Gromdor said:

The amusing thing is that there are more than 17 million vacant homes in the US last I checked.  

Do you have a breakdown as to where those homes are located?  I'd suspect the vast majority are in depressed areas with little to no employment and high crime.  There are some neighborhoods where you literally can't give away the real estate because the surrounding areas are so bad... or you can buy the land for pennies on the dollar.

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5 hours ago, Edumakated said:

Do you have a breakdown as to where those homes are located?  I'd suspect the vast majority are in depressed areas with little to no employment and high crime.  There are some neighborhoods where you literally can't give away the real estate because the surrounding areas are so bad... or you can buy the land for pennies on the dollar.

Actually, it's the opposite because the number counts unoccupied homes of the wealthy who own multiple properties: How many vacant homes are there in the US? (usafacts.org)

"However, since gross vacancy rate is a measure of all vacant properties — including vacation properties — states with several popular tourist destinations, like Florida and Hawaii, will always register slightly higher rates. The Census Bureau notes that the largest category of vacant housing in the United States is classified as “seasonal, recreational, or occasional use.” In over one-fifth of US counties, these seasonal units made up at least 50% of the vacant housing stock."

I'm among that number.  I own property in Florida, for instance and we only go down there to vacation.

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