The US housing market is so expensive that incomes would have to spike 55% for it to be considered affordable, industry exec says
The US housing market is so expensive that incomes would have to spike 55% for it to be considered affordable, industry exec says
To hit pre-pandemic affordability, either US incomes must spike, home prices have to crash 35%, or mortgage rates must come down.
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The prices are secondary. Why is there a shortage of housing?
I think it depends on the place but one observation is to notice what builders are choosing to build. In my area at least the majority of new construction is either cramped subdivisions with $600K+ homes, luxury apartments, or 55+ maintenance provided housing. All of these categories are not what the general populace is looking for, especially first time buyers or new entrants to the market. But I'm guessing the margins on these properties and rentals are much higher.
I think developers don't want to waste their efforts on affordable rentals or starter homes. They have block of land X, so they figure they can get Y% more return by building properties with rents in the top quartile for the area.
Yes. Now offer more land and the right to use prefabricated elements. Then somebody will figure out a way to create housing with low margins.
Nimbys
Affordable housing can be built in new areas connected by public transport. Nimbys cannot have a majority everywhere.
They are the ones who vote. They don't need a majority. They need a majority of voters. They seem to have it. I think we're learning that we have the country that we want more and more everyday. We don't want better, we want this.
Or renters could organize and motivate the nonvoters to vote after they have clarified which party is willing to implement the necessary changes.
Hard to do when everyone views renters as parasitic children.
35% renters is not a guaranteed win for a new party. But in a two party election, they decide the winner. That's a foundation for starting a negotiation.