What caused home prices to skyrocket? It used to be so affordable.
Home Prices
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Lots of these threads today. Jidf plz lol
>redpill me on X.
>wanting to start a discussion is a bad thing
the first one is a bot
>What caused home prices to skyrocket? It used to be so affordable
mass migration, stagnant wage growth, property speculation, increasing population, increased land cost and regulations- just a few to get you going
basically bankers wanted to do what they do best and make money for doing nothing and the jew overlords at the fed agreed that artificially inflating home prices would allow many goys to refinance or take out some equity and spend wildly jump starting the economy. housing prices are going to collapse big time as housing is in a massive bubble and once the baby boomers really start croaking and dying off or trying to downsize they aren't going to be able to find buyers at the high asking prices as much of the younger generation can't even get a home loan with a mortgage sized student loan payment. basically the whole situation housing and student loans are both fucked bubbles that are long overdue for popping and correction, except so far big daddy government won't let the correction actually occur
Checkeked
>mass migration, increasing population, increased land cost and regulations
no
>property speculation
yes
Some of those cheap craftsman homes from the turn of the century were as basic as fucking sheds. They bled heat in the winter and took a forest to heat. They had one bathroom in many cases, little wiring too. Modern homes are typically larger, with more plumbing/electrical ect. They are built with higher quality wood and bracing requirements - most homes built after 2000 will surrive a Cat 3 hurricane direct hit - trust me, I’ve been in one during an Cat 3 eye wall pass through, and the whole town stood up perfectly.
Another reason is land prices. If you want to see what a house price is without land costs - check out small town USA in fly over states. You can buy nice homes for 175k. Land is a huge factor in cost.
Lastly... interest rates. When interest rates were once in the 20% range, even a 75k home would cost you a ton per month. At 3.7% (my current rate), I can do 200k for the same rate. That is a HUGE reason the raw prices have gone up.
Does this help?
That house cost the same of about 60 oz of gold at that time.
>Toxic asset monetization
Basically since banks got rid of their shitty assets from the last crisis they could afford to give everyone a mortgage now
>low interest rates
Since monthly payments are low people don't give a shit how much the house actually costs since they can afford the monthly payment, and speculate that they can dump their bags onto other goyim, which is true until it isn't.
Homeowners are unironically fucked, because people are getting FHA loans for 3.5% down, and conventional loans for 5% down. Just imagine the shitshow that will occur once people's home values drop 20-30%. There will be fire sales again just like in 2007-2011.
Basically your average person responds to incentives, and they have a huge incentive to overpay for housing right now, until the situation changes and they realize they are holding heavy heavy bags.
If houses were truly cheap, value investors would be buying them, which is not the case. Although, many value investors were scooping up housing in 2009-2012.
(((Who))) do you think did this?
boomers
>posts ad from ~100 years ago
>doesn't post average wages from same time frame
no, just plain inflation. A car was only a few hundred bucks then. Is the higher cost of cars because of speculation? Also that house is basically a box. No modern amenities.
You're both fucking retards.
Housing inflation has outstripped general inflation substantially over the years. And over the last 30 years general inflation has outstripped wage inflation.
average salary in 1900 was $450 in 1900 dollars, more than a third of the price of that home.
Mortgage interest rate was mid 20%.
Now that interest rate over time is baked into the price. Same reason why education is so expensive, because easy to get loans.
about the same as now.
Part of the problem is that people that own the homes refuse to admit that the market went down and they refuse to take a hit on the house. They seem to think that if you buy a house when you go to resell it it will always be for more than you paid. Sometimes you have to take a loss, but they would rather not sell than take even a minimal loss.
The average size house has gone up massively as well. I dont know about your meme country but poor people here live in good size condos in the burbs up to 4 bed houses on quarter acre lots.
Bump.
>commie lamenting the free market
its not that homeowners have much of a choice in that; its their central bank puppet masters who think it would be an excellent idea to fuck over a healthy housing market
What free market. It was shown that prices were being kept high through shady means. I've seen many houses stay on the market for years and they never lower the price. They just sit on it.
They started paying people not to design homes where you have to walk outside on your porch to get to the bathroom.
those things don't apply to you because of how vast Canada and the US is.
England has a population density greater than India, even higher in the South east.We live in the smallest homes in Europe. Hundreds of thousands of people arrive every year. Those things are valid for us
>What caused home prices to skyrocket?
Jews.
The ultimate function of animals inhabiting and defending a territory is to increase the individual fitness or inclusive fitness of the animals expressing the behavior (fitness in this biological sense relates to the ability of an animal to survive and raise young). The proximate functions of territory defense vary. For some animals, the reason for such protective behavior is to acquire and protect food sources, nesting sites, mating areas, or to attract a mate.
Keep this in mind the next time your boomer parents tell you that aren't owed anything, you are. Boomers think they are owed a retirement home, they aren't. The nation is our biological inheritance, it is not a mystical "social construct" that can be sold off to the highest bidder.
>people freely set price
>price too high for market
>product stays on market unsold
the only people who complain about this are realestate agents, but then again they collude to reduce sell prices.
Why can't you build a house yourself?
Please fucking kill yourself.
Nobody benefits from high housing costs. Governments, on the other hand...
Supply demand Republicans want faster growth for profit . Lower people tax to promote growth from within is not an option . Open borders for rich Chinks