Unaffordable Affordable Housing (houses, to buy, price)

[markas214]

Originally Posted by LDDiamondGirl

Okay, I have read lots and lots of these posts. I can't believe people are still asking about affordable housing in California. I went down to OC/SD last week to see our friends who moved there, near the beach. I came away saying there wasn't a snow ball's chance in Hell of me moving there without another 3 million. Why is that so difficult to do? Why a person would want to live somewhere as a bottom feeder is beyond me, when they have a chance to live somewhere else better.

Is it the phenomenal human capacity for adapting by way of denial the reason why so many people here are looking for Affordable Housing in California?

You seem to believe that "afforable housing" is somehow subjective. When the cost of owning a median priced house is 10 times the median income it is unaffordable to greater than 90% of the people who live and work there. Hence the lack of "affordable housing". Now that the loose lending standards are going away and interest rates are rising even most the 10% who were able to buy will be priced out too. It is unsustainable. Recent history shows what happens when things become so out of balance. The housing crash of the 90s followed an overheated market that was no where near as crazy as the current one. When sellers finally begin capitulating those who bought at the peak will be left with a home worth half of what they paid. It won't happen overnight but will happen. Then those of us who are patient and holding our cash will come in and buy. The cycle will repeat again and hopefully peak just when I'm ready to retire. If not I'll hold on until it does not because I'm over my head like those who bought at the top but because again I will be patient.

[Judy & Randy]

There is no excuse for people on the internet not knowing how much a house costs anywhere. Apparently they're just lazy or want to live in their own little world. All they have to do is punch in the town they are interested in and go to `real estate'. If they want real western affordable housing they need to check out the Tri-cities area in Washington State. We live in northern Calif. right now and might be moving there ourselves. But if you're a city slicker, then by all means stay in your beloved cities, whichever 1 you want. Just be ready to pay dearly for your wishes.

[LivingLikeAGradStudent]

Even coastal housing can be relatively affordable when rented. If people stop thinking of their house as a major tent pole for their finances and rather as a pleasant place to live, these perceived roadblocks would become much less so.

[EscapeCalifornia]

Originally Posted by LivingLikeAGradStudent

Even coastal housing can be relatively affordable when rented. If people stop thinking of their house as a major tent pole for their finances and rather as a pleasant place to live, these perceived roadblocks would become much less so.

Why would you want to live under someone else's roof for the rest of your life?

[goodbyehollywood]

Originally Posted by LivingLikeAGradStudent

Even coastal housing can be relatively affordable when rented. If people stop thinking of their house as a major tent pole for their finances and rather as a pleasant place to live, these perceived roadblocks would become much less so.

SoCal has made affordability a relative decision. A small, outdated bungalow in Venice or Santa Monica runs $3000+ a month. Apartments are cheaper, but they're no bargain. And not everybody wants a houseful of roommates. If you can pay that kind of rent, most accountants would tell you to buy, for tax purposes not tentpoling. Reality and aspirations have a serious disconnect in SoCal. Somehow, the gap will have to be bridged, and the market find an equilibrium, or economic fundamentals will need to be re-examined.

[LDDiamondGirl]

[quote=markas214;1144631]You seem to believe that "afforable housing" is somehow subjective.

Indeed, I do.
If I had bought my house in 2000 instead of 2005, I wouldn't consider a million and a half dollars unaffordable.

[nevergoingback]

Affordable housing is an oxymoron.... if someone buys a house then it must be affordable... if not then the price goes down (forclosed or otherwise). The market is getting more affordable as we speak in alot of places (prices dropping, people buying)

[EscapeCalifornia]

Originally Posted by nevergoingback

Affordable housing is an oxymoron.... if someone buys a house then it must be affordable... if not then the price goes down. The market is getting more affordable as we speak in alot of places (prices dropping, people buying)

Not really true when you throw in neg-am, teaser rate, no money down, no doc loans. I guess $600k is affordable if a dish washer and a house cleaner were able to buy it, right.

[Ultrarunner]

Prices have fallen quite a lot and inventory is way up... I work with people that could afford to buy a home right now... and they plan to buy a home.

However, they have decided to wait because they believe prices are still falling and they really like the home they are renting at about 1/3 of the cost to buy it.

Just because someone can afford to buy something doesn't mean they should or they will.

[NYSD1995]

I see a big confusion of issues here.

For-sale housing and affordable housing are not necessarily related.

The expectation that one can find affordable housing somewhere is reasonable.
The expectation that one can find affordable housing in their preferred area is unreasonable.
The expectation that one can find affordable for-sale housing in their preferred area also unreasonable.

We all make choices - where to live, to rent or buy, etc. It's a common and dangerous trap to get caught up in the entitlement mentality about what you should be able to afford.

We don't get to live life on our own terms without making choices - and for some that may mean moving, renting, living with roomates, or living in a less desirable area. If you are unprepared or unwilling to make those choices, you are just playing the 'victim' card.