Fuck me dead that is not a three million dollar house.
“Just learn to kiss some ass. That man has the power to fire you! When he says come in on Saturday, show up on Sunday also too!”
– My Silent Gen parents, every goddamn day
$3M for 1,300sqft (120m²)…
That’s absolutely insane. You can get a proper mansion for that here in Scandinavia…
Well, to be fair this in an insanely overpriced area of the United States. If Scandinavia was the size of pretty much the entirety of Europe you’d have price extremes as well.
For example if you look up a similar house in the Midwest of the United States (Illinois, Missouri, Wisconsin, Iowa, ect) this house would be under $200,000.
Asking 2 got 3. Did a corporation buy that?
Housing crash when?
At this point, not without a bloody upheaval.
Not that I’m encouraging that. It sounds horrible. But still.
It’ll never crash again. Private equity will buy every home and rent them back to us. Forever.
Then make sure private equity goes out of business
How?
Something something avocado toast
My landlord recently told me how much they think the place I’m renting would sell for, and now idk why the owners even bother renting to me because the price is like 50 years worth of my rent.
Because he gets a steady supply of money and then in 10-20 years it will be worth 100 years of your rent on top of the 10-20 they collected already.
The bubble could pop though and you lose out. The market has softened near us and there are people that have lost 100s of thousands in equity already, and are upside down in the mortgage
I feel like “lose out” is an overstatement. There are/were still steady rent payments even if the whole bottom falls out.
The bubble will inevitably pop as the boomers start dying and the housing supply relative to the population starts increasing. Plus no want wants to pay for the catchup work needed to address 30 years of deferred maintenance, so a lot of houses will go for cheap.
This. I was going to mention the depracating property. Our place needs a new roof soon. I have seen people skip it as well as lots of other outside water shielding maintenance and the place is a rotten mess 50 years later
Of course, but a generation of homeowners grew up learning that, barring short disruptions, home prices always go up. Nevermind that this was largely due to interest rates steadily dropping since the 80s, reaching basically 0% during Covid.
Since there isn’t really room for interest rates to drop anymore people shouldn’t expect home prices to rise faster than incomes rise, but it’s going to be hard to undo 30 years of observation.
Well you see, he can take a loan on the equity, you pay the loan for him and he doesn’t have to pay any where near as much in taxes. You’re just helping out a landlord in need.
It’s because your landlord never paid for it. The bank did. You’re paying the interest on his loan.
I don’t think you know how loans work.
They mean if they sold it now they’d have 50 years of rent now, instead of waiting 50 years to accumulate that amount. All that money now is worth more then getting it later.
Don’t forget taxes. All they have to do is “move in” for a year or so to get a massive tax savings on the sale.
I know what they meant.
Renting out properties is not about making tenants pay the same amount as the property is worth over any period of time.
It’s about having someone else cover the cost of borrowing the money while the property increases in value by itself until they decide to cash in.
You should all come to my town middlesbrough in the uk my 3 bedroom was just £91k in 2018.
We have like 9 jobs… so you have to share mind…
How’s the internet? Asking for a friend
We are just getting the good stuff, 1GB speeds. If you mean Mobile Internet then its much more patcy…
And they use the 3mil to buy a nice small house and outbid a working class family that currently live in a 2 room apartment
As a rental, obviously. No way they’d actually live there like poors.
The oldest sale I could easily find was 1988, when it sold for $338,000 or about $956,400 today. In 1960 when it was built it likely sold for $15,000 and $22,000 so about $249,077 today. So from 1960 to 1988 it increased by 3.84x and from 1988 to now it increased by 3.16x. Wages increased by around 5.2x from 1960 to 1990 and about 2.4x from 1990 to 2025. In 1988 the house was 10.5x the average American families gross annual income. In 1960 it was 3.9x the income and today it’s 36x the average American families gross annual income. I didn’t really account for the area so the last part should really be done for California. Even today it’s not fair to lump in the economics of somewhere like West Virginia or Mississippi with California. Either way it’s probably more accurate to use the median instead of average.
Thank you for doing this research! It’s the first thing I thought of as well.
You’re welcome. I was curious. Pretty fucked. I redid the calculation for the median income of the area and the house is still 30x the annual yearly income. From 3x to 30x in 65 years is not good.
San Jose is not considered Southern California. It is Silicon Valley.
visits silicon valley
no silicon in sight
mfw
Was there a valley at least?
It’s more of a bowl really.
The music video: https://www.youtube.com/watch?v=_cZC67wXUTs
Its all under the skin
Updated
Right. I had to get up in the morning at ten o’clock at night, half an hour before I went to bed, eat a lump of cold poison, work twenty-nine hours a day down mill, and pay mill owner for permission to come to work, and when we got home, our Dad would kill us, and dance about on our graves singing “Hallelujah.”
But you try and tell the young people today that… and they won’t believe ya’.
Nope, nope…
A Monty Python reference? In this economy???
You still can! You just gotta really lower your standards for what a “house” is
Home Depot special.
Yup. I’m down with a toy hauler rv (If I decay much more I’ll need a ramp) and my favorite apartment was 500 square feet. I found a decent plot of undeveloped land near where I want to retire. An rv could get us started, and we can use our camping gear for an extra “indoors” room.
Can you legally live in an RV there? i have some vacant rural land, but the county laws dont allow camping or RVs. They also ban structures until you build a dwelling of at least a certain size.
Not even allowed to be poor on your own land
it’s out in farm country. If they outlawed RVs, they’d be fucking over their labor force (at least where I am, half the folk in the migrant camp are in RVs, half are in modular homes).
that doesn’t mean i wouldn’t put it past them, but they grow better food there than we do here, and it’s just a couple hundred miles.
Some loud Boomers aren’t all Boomers. There are so many I know who still need to work as they can to cover rent.
Not all boomers! 🤣🤣🤣
probably not most of them.
Who knows all of these boomers scolding anyone? I’ve never heard one say that. Do I only know or am I only related to nice boomers?
- It’s corporations buying up all of the extra housing
- It’s price fixing the rentals and housing through software they bought up.
You have nice boomers. Mine understand the inherent changes in the market since they were our age, but they still blame us for not doing what they did.
There’s a middle ground somewhere between the extremes… I was lucky that I got out of school at a still good time. But it still took sacrifice to get what you wanted.
Like sometimes I was cutting mold off the bread to make a sandwich for work, and only home cooked food, and no budget for entertainmentn expenses. It got us a two bedroom house for the, baby, plus car and motorcycle. That was on one salary, but I realize that ain’t happening today.
But also I have seen family members of the young generation order a smoothy on skip, purchase $300 concert tickets, while racking up debt…while complaining of cost of living.
They aren’t getting a 2 bedroom house on one salary with 5% down, but they certainly could be saving for one by making some spending adjustments.
yeah i don’t have any realistic way of saving the 20% down they want before i die.
And if that is the situation, at least skip some pleasantries and contribute to a fund that has growth so you can afford rent later in life. That’s the issue I see, people will get to 65 and have a tiny government pension that won’t cover groceries and such, let alone rent
Oh yeah, we’ve got one of the best government plans still available since my wife is a teacher and I’m fancy. We were a touch late for pensions (defined benefit), but we are right in time for defined contribution. Hoping we can use the money/die before it bottoms out
Maybe it’s fun to compare, so here’s what prices are like in frozen/sweltering prairies for those curious. Edmonton Area (Satellite city) in Northern Alberta also keep in mind these are in Canadian Dollars. A bi-level now is around $470k. My bi-level is 1200sqft (Alberta doesn’t count the basements) and was $325k in 2016 for an idea of the rate the prices are going up here.
1925 build, oldest part of the city is the cheapest I found here before getting into trailers, shipping container apartments, and tiny in-fills:
Duplex prices:
Bungalow:
Bi-Level:
Larger/Newer:
I wouldn’t want to live in Alberta anyway
Same
