Why is everyone bitching about real estate? $30,000 in 1970 = $192,000 in 2017

I'm seeing this in my town (not wichita falls). A $60,000 home sold in 2000 is selling for $57,000 today (inflation adjusted $60K then = $87,000 today).

Why is everyone bitching about real estate when it's cheaper than it was both in 2000 & 1970?

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lol real estate matches inflation, when it stops matching inflation it becomes a bubble. also there are soo many factors like location, and renovation etc.. that determine the value of homes.

Real wages

This is exactly my point.

Real estate is going down per inflation in a lot of areas of the US. Real wages are just going down faster.

>Wichita
Good luck finding a job there... Wages havent kept up with inflation for the under 35's. In combination with higher education price, the inflation adjusted wealth for the young homebuyer is the lowest in 50 years in USA.

What was the average household income in that area in 1970 vs now?
Median income?

I can get a fucking house in butt fucking nowhere as well that's not the issue people are having.

Median income 1970 = $9,870
Median income 2017 = $61,372

Median income years to own that home in 1970 = 3 ($30K)
Median income years to own that house in 2017 = 3 ($180K)

This isn't just one example - this is fairly typical to what I'm finding across the mid-west

Probably because housing is only affordable to boomers who rose up the wagie ladder. Entitled Zoomers want to live in nice houses but they ant afford the down-payment.

So when boomers die and leave the houses to their kids, the kids will try to sell, but there will be noone to buy their bags.

What about other parts of the country?

I'm not familiar enough with them to know.

I know part of this is because a lot of people want to live in big cities but don't have jobs that justify it (someone can own a house for 1 year of wages working as a warehouse stocker in my town). A lot of jobs have moved to big cities over the last 100 years but I expect that to begin to diminish due to remote from anywhere jobs (Amazon CS reps etc will replace retail)

I was looking at townhomes in Florida at one point. Seemed pretty affordable to me. (1.5x median wage)

>lol real estate matches inflation, when it stops matching inflation it becomes a bubble.
>What is demand and supply.
Most retarded logic. Demand is growthing because of more single households, more migration and more population over all.

My parent's bought their house 20 years ago for 180k and it is now worth 800k. That's 4.44x.
My dad made 30k back then, which is about 15 bucks an hour, which is about 2.5x the minimum wage back then. Wages have not pulled a 4.444x like the value of the house has. My father would have to be making 133k to have the same income to debt ratio now as back then. 133k is about 60 bucks an hour, which is not 2.5x minimum wage.

Average wages are up because of aging population. To understand what is happening to the housing market you need to look at first time home buyers.

is that median household income though? in 1970 that number was probably mostly for one person working compared to now where it is mostly two people if so. and I think it must be because there is no way $60k is the median income for one person in Wichita Falls TX

Fair point on median income in Wichita Falls.

I wish I made $64K but at $45K I feel like I'm doing better than most people around me.

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I would be interested in what the population profile of where they live has been over 20 years. Reason I'm interested in this is I own a few rentals and I'm rethinking my real estate strategy.

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You're too late to invest. This is NYC.
There's even more outlandish stories. My parents friends bought about 4 or 5 6-family houses for 40k each in the late 70s/early 80s. These houses are now worth 3-5 million each. They collect probably 40 or 50k/month in rental income now.

Yea I have zero desire to invest in bigger cities. I am only interested in 1 median year or less properties. One living unit should not cost less than one median income year.

I'm mostly interested in both protecting against inflation via appreciation + small (3 - 5%) rent. There are still some deals to be had in OKC which seems to be up & coming.

You obviously live in a shithole small town nobody wants to live in

I don't even disagree with this. Although I'm seeing more and more people retire here since in a town of 20K we have one of the states better hospitals, a gym w an olympic pool / sauna etc.

I've been able to amass 4X my annual salary in 10 years. There aren't many places you would be able to work at a warehouse for $15 an hour & buy a 1,500 sq foot house for $50K.

I've been able to amass 4X my annual salary in assets within a decade. I think there's buyers remorse from late 30 somethings who went where they wanted without a skillset to earn what they should've to not still be stuck on square 1 20 years later.

The insult to me may be "You live in a shithole town" now. But in 5 years when I'm semi retired to a beach in Thailand or an eastern European capital center in my late 30s due to my low cost of living I'll win.

"I can't live where I want affordably" & "I cannot afford a place to live" are two different things.