First, beginner homes are being bought and flipped to Rentals. A 450$/Month Mortgage turned into a $1,200/Rental. People who own houses no longer sell them but buy another house and rent out the first one.
Second, Land Developers maximize their earnings before building. If they have limited Residential Space, they will build Apartment Complex (Cheap to make and Huge ROI). If they have enough Residential Space, they will maximize the house size on the land to get the largest ROI from the land.
Where’s that “rent is too damn high” guy when you need him
Guys it’s simple just increase your income by 3x
There’s a whole huge community near me that’s has been built in the last few years. Nice looking houses. Nice community. Houses and townhomes packed in TIGHT.
The prices are outrageous. Truly outrageous
I live in Dallas and that's not even close to true...
It's like 10 times the rate
There is an inventory problem in many major cities. They aren't building fast enough in the Bay Area, DC, Boston, NYC, Seattle, and LA. There is a combination of reasons for this ranging from lack of available land, shortage of trade workers (at least in Boston), and NIMBYISM that prevents higher density development, and large development projects taking sometimes years to complete. Some states are planning on changing zoning laws to help deal with this and some new properties are hitting the market but it will likely be a problem for at least the next few years and maybe we can see some improvements then.
I know this is going to sound selfish, but I actually hope that the whole international housing bubble bursts within the next year or two and home prices collapse, I know that this is selfish, but the housing market is outrageous and needs a correction. I want to buy a house, but I'd rather wait until it all comes crashing down first so I can get in at the bottom.
I call it "Millennial Monopoly" I just go around in circles on the board and rent rent rent without ever actually getting to buy anything.
As someone who bought in the summer of 08, I’ll be glad once my house is worth what I paid.
Does that include my cardboard box home under the interstate overpass?
May be a stupid question but at this point would it be cheaper just to build a house?