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Old 05-06-2018, 08:11 AM
 
10,276 posts, read 6,523,579 times
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Quote:
Originally Posted by jm1982 View Post
Yeah a lot of people donít seem to get this . The land costs the same whether luxury or non luxury . The labor is the same . The finishes might be slightly more but anything new in a city like L.A is viewed as luxury because new buildings are so scarce .

The only way affordable housing can be built is if itís subsidized and there will never be enough of it to meet the demand of people that want to live in a high cost city for an ďaffordable price ď

Also some of these affordable housing projects require 6 figure salaries just to rent there .

Like this one in Brooklyn .


$100K Income Needed For 'Affordable' Prospect Lefferts Apartments
The "affordably" priced studio apartment on Linden Boulevard costs $1,800 a month.
https://patch.com/new-york/prospecth...rts-apartments
That's crazy that they call that affordable. The city should make builder build a few truly affordable smaller units with lower cost appliances that rent to the area median income.
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Old 05-06-2018, 08:15 AM
 
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I wonder where and how much the cheapest starter 3/2 home 1200 to 1400 sq ft would be, new construction.

Last edited by LifeIsGood01; 05-06-2018 at 08:32 AM..
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Old 05-06-2018, 10:58 AM
 
Location: Los Angeles (Native)
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Quote:
Originally Posted by LifeIsGood01 View Post
I wonder where and how much the cheapest starter 3/2 home 1200 to 1400 sq ft would be, new construction.
Cheapest in the country ?
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Old 05-06-2018, 11:22 AM
 
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Quote:
Originally Posted by jm1982 View Post
Cheapest in the country ?
In my area? About $140-150k in a mid range school district, 100k in the poor districts, and $220k in the good school districts.
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Old 05-06-2018, 11:33 AM
 
Location: Los Angeles (Native)
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We went to take a look at some models homes yesterday in a community that is being developed . New homes are rare in the L.A area . They are in an area of the San Fernando Valley that is pretty suburban but still in L.A city limits .

These are “small lot homes” that are two stories and about 1500 sq ft and the prices vary but they start at $650,000 . The HOA is $120 a month .

They had another stage that was opening up summer much bigger homes like 3500 sq ft starting at 900k to over $1 million .

The developer is D.R Horton .

I was watching the shop FixerUpper as it was on at a relative’s house and they showed a home being remodeled in Waco TX . I was curious to see what homes were going for in Waco TX .. and I saw a brand new home for sale actually also by D.R Horton .


When mentioned to my native L.A family members about the massive price difference they said .. “but there’s nothing out there “ ... “jobs pay a lot less “ ..

I guess the point is that all real estate is really local and much of the media has a coastal focus since all their offices are in the coasts .
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Old 05-06-2018, 11:57 AM
 
10,276 posts, read 6,523,579 times
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Quote:
Originally Posted by jm1982 View Post
I was watching the shop FixerUpper as it was on at a relativeís house and they showed a home being remodeled in Waco TX . I was curious to see what homes were going for in Waco TX .. and I saw a brand new home for sale actually also by D.R Horton .


When mentioned to my native L.A family members about the massive price difference they said .. ďbut thereís nothing out there ď ... ďjobs pay a lot less ď ..

I guess the point is that all real estate is really local and much of the media has a coastal focus since all their offices are in the coasts .
How much was the new house in Waco?

Plus in LA you have people working for minimum wage, while it's still higher than other states it never enough to buy even a modest stater home, you'd be lucky to buy an old mobile home on land 1 hour outside LA.

Yes jobs pay a lot less in Texas but you can afford to live there, you just can't afford a $650K starter home.
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Old 05-06-2018, 05:21 PM
 
Location: Los Angeles (Native)
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Quote:
Originally Posted by LifeIsGood01 View Post
How much was the new house in Waco?

Plus in LA you have people working for minimum wage, while it's still higher than other states it never enough to buy even a modest stater home, you'd be lucky to buy an old mobile home on land 1 hour outside LA.

Yes jobs pay a lot less in Texas but you can afford to live there, you just can't afford a $650K starter home.
The new house in Waco was a little under $180,000 .

Yeah I agree . Most people arenít making enough more to pay for the much higher cost of housing .

75 percent of L.A residents canít afford to buy a house here .

https://la.curbed.com/2018/2/19/1702...ow-much-to-buy

In San Francisco itís even worse . Only 12 percent can afford to buy a median priced home there .

https://sf.curbed.com/2018/2/15/1701...ancisco-afford
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Old 05-07-2018, 12:31 PM
 
Location: New Orleans, LA
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Fifty years ago, in the states and cities I lived in, a young middle class couple buying their first home would save up 20% before even starting to look. The houses they would look at would be older, less than 1000 sf, only one bathroom for sure, no garage or carport, no upgrades, a fixer, holes in the wall, weeds waist high in the yard instead of grass, in a sketchy neighborhood, really genuinely ugly and run down looking, no air conditioning, and probably right on a noisy major street. THAT was a starter home.

Sometimes (probably unintentionally) individuals have mentally redefined a starter home to be a lot fancier. I think that is the disconnect here. I see plenty of starter homes available for reasonable prices. However few young people would ever dream of such humble beginnings especially if unable to pay to fix it up right away. HGTV has raised everyone's expectations.

Maybe homes such as I described are bought by investors/landlords who can afford to fix them up right away and rent them out.

Don't forget to consider inflation. I Googled for online inflation calculators, and tried one; it said that $100,000 today was the same as just $13,945 fifty years ago.

Last edited by NOLA2SGF; 05-07-2018 at 12:57 PM..
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Old 05-07-2018, 12:51 PM
 
8,390 posts, read 7,385,412 times
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Quote:
Originally Posted by LifeIsGood01 View Post
That's crazy that they call that affordable. The city should make builder build a few truly affordable smaller units with lower cost appliances that rent to the area median income.
That is impossible to do. Lot costs, plus fees, bringing in utilities and streets, can add up to more than affordable smaller units that can be rented for area median income, before they even start building. What you are suggesting, is to drive builders out of business and bankrupt.

If the city wants to provide these low cost units, then the only way to do it is to raise taxes on everyone in the area enough to come up with enough money to build those units. Of course the tax raise would be so high, the public would be calling for recall elections and kick those people out of their position for coming up with those high taxes.
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Old 05-07-2018, 01:16 PM
 
10,276 posts, read 6,523,579 times
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Quote:
Originally Posted by oldtrader View Post
That is impossible to do. Lot costs, plus fees, bringing in utilities and streets, can add up to more than affordable smaller units that can be rented for area median income, before they even start building. What you are suggesting, is to drive builders out of business and bankrupt.

If the city wants to provide these low cost units, then the only way to do it is to raise taxes on everyone in the area enough to come up with enough money to build those units. Of course the tax raise would be so high, the public would be calling for recall elections and kick those people out of their position for coming up with those high taxes.
I'm not talking about homes i"m talking about apartments. If a builder is allowed to put in 200 units at least 10 should be set aside for lower income people. Maybe smaller with lower end finished but it's not impossible.http://www.latimes.com/local/lanow/l...615-story.htmlDevelopers can be required to include affordable housing, California high court rules


The decision clears the way for Los Angeles and other cities to require developers to sell a percentage of the units they build at below-market rates as a condition of a building permit. Developers also could be given the option of paying into a fund for low-cost housing.
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