Housing

[UNCatTech]

My wife and I enjoy looking at new housing being built. We get ideas for home improvements, etc.

We were looking at a new development the other day. They were building something I've never before seen. They were building duplex townhouses.

From the front they looked like townhouses. When you went inside there were two entry points. They were extreamly small 2 br (second bedroom barely big enough for a twin bed) 2 bath layouts. They were listed for $450k.

The housing market is broken.

 

[aGDevil2k]

My wife and I enjoy looking at new housing being built. We get ideas for home improvements, etc.

We were looking at a new development the other day. They were building something I've never before seen. They were building duplex townhouses.

From the front they looked like townhouses. When you went inside there were two entry points. They were extreamly small 2 br (second bedroom barely big enough for a twin bed) 2 bath layouts. They were listed for $450k.

The housing market is broken.

Where was it?

And yeah the housing bubble needs to pop. The good part is most people know it's going to pop and haven't been buying for years - it's been so static....unlike the issues in 04-10

 

[UNCatTech]

It's in Cumming Georgia. It's a massive neighborhood, with all levels of housing, apartments, single family homes, townhomes, and retail.

 

[Willy]

Anecdotally, housing prices have started to come down significantly in the Winston area. We've been looking at putting our house on the market for the last 18 months. Looking at comps, our value has likely declined 10% over that time frame. Perhaps a little more.

 

[UNCatTech]

I read an article last week stating that 2024 was the worst year for home sales in a decade. Home cost are crazy high, interest rates are up, and PE is buying up homes to rent, rent prices are up. The system is broken.

 

[SnoopRob]

I wouldn’t say the system fully broken, just severely misaligned incentives between builders and buyers.

This is a place you really need an overarching solution that comes from above any one piece of the system, but that would have to be government and that’s a hard sell right now.

 

[aGDevil2k]

It's in Cumming Georgia. It's a massive neighborhood, with all levels of housing, apartments, single family homes, townhomes, and retail.

$450K for that way the hell out in Cumming? Ok that is freaking insane. You are closer to Dahlonega than Atlanta, there.

 

[aGDevil2k]

I read an article last week stating that 2024 was the worst year for home sales in a decade. Home cost are crazy high, interest rates are up, and PE is buying up homes to rent, rent prices are up. The system is broken.

THAT is the biggest problem

 

[roostra]

There are many parts of the country that are dually constrained by geography (San Francisco, NYC for example) and NIMBY policies that have constrained construction of new housing. Corporate ownership of housing stock for rental purposes is also a big, big problem.

 

[farce©]

There are many parts of the country that are dually constrained by geography (San Francisco, NYC for example) and NIMBY policies that have constrained construction of new housing. Corporate ownership of housing stock for rental purposes is also a big, big problem.

Zoning requirements for single family detached homes in certain neighborhoods in dense cities is a big NIMBY weapon. They basically zone out affordable housing.

 

[UNCatTech]

$450K for that way the hell out in Cumming? Ok that is freaking insane. You are closer to Dahlonega than Atlanta, there.

True, but Forsyth is a top growth county in the country and the average income in Forsyth is well above most of the state.

It actually less expensive for new development, but it's so small for that price. I believe it was are 1100 sq ft.

 

[UNCatTech]

THAT is the biggest problem

There's a neighborhood in Ballground PE stepped in and purchased the entire neighborhood and turned them into rentals.

And they are expensive for the area. $2300 and up per month for 1 and 2 bedrooms dwellings.

 

[roostra]

Zoning requirements for single family detached homes in certain neighborhoods in dense cities is a big NIMBY weapon. They basically zone out affordable housing.

Minimum lot sizes are also a huge impediment.

 

[UNCatTech]

So how do we solve these issues?

Gen Z is struggling to afford housing. Even with 20% down the mortgage on $400k is very high, especially with rates as they are.

 

[mpaer]

I think a tariff on Candian lumber will help lol

 

[farce©]

I think a tariff on Candian lumber will help lol

As will deporting many of the laborers doing the actual building of new homes.

 

[roostra]

I think a tariff on Candian lumber will help lol

Don't forget foreign-produced steel. Those will go great with immigration actions that shrink the construction workforce! Prices will go down in no time.

ETA: Beat me to it, Farce!

 

[Carolina Fever]

Only the rich deserve housing. Everyone else will just have to live on the street, and young adults can just live with their parents forever.

 

[UNCatTech]

Only the rich deserve housing. Everyone else will just have to live on the street, and young adults can just live with their parents forever.

Yea, and don't you forget it.

Of course there is some benefit to kids living at home a little longer. This is normal in many other cultures.

My oldest daughter stayed at home until a year after college. Because of that she was able to have no student loan debt and had saved enough for a down payment on a house.

We're contemplating our middle daughter and her wife moving back in for a year or so. To allow them to save a down payment on a house.

But I am very fortunate, many people do not have these options. For this I am very thankful.

 

[UNCMSinLS]

Only the rich deserve housing. Everyone else will just have to live on the street, and young adults can just live with their parents forever.

If Trump/RFK, Jr. have their way with a much more virulent virus with no vaccine, there will be PLENTY of housing available for everyone still alive.