Was a "Brady Bunch" home ever affordable? (Los Angeles: middle-class, sale)

[MediaArtist]

Of course it was affordable. Back then the U.S was the unrivaled economic hegmonic power of the entire world, and one guy working in a factory could afford 1,800 sqft home on his salary alone.

[wehotex]

Originally Posted by bhcompy

In 1970 my family's brand new Lakewood home cost $30k. For $33k you could get a second story and a pool.

Yes, I know that homes didn't cost much then, but the dollar wasn't so highly inflated back then either and incomes were also lower. Even in my hometown Corpus christi, Tex, my parents' "ranch style" home bought in 1970 was only $16,000!!! Six years later, it sold for a whopping $24,000! Then, we moved to a larger 4 BR home for $46,000 in 1976. It's now valued at $180,000, some 37 years later. I guess that it happens everywhere, but not in such a small window of time like here in the LA area. I still don't completely understand why ppl wish to live here if they are married with kids and struggling to make it. It's a hard life, imo.

[bhcompy]

Originally Posted by wehotex

Yes, I know that homes didn't cost much then, but the dollar wasn't so highly inflated back then either and incomes were also lower. Even in my hometown Corpus christi, Tex, my parents' "ranch style" home bought in 1970 was only $16,000!!! Six years later, it sold for a whopping $24,000! Then, we moved to a larger 4 BR home for $46,000 in 1976. It's now valued at $180,000, some 37 years later. I guess that it happens everywhere, but not in such a small window of time like here in the LA area. I still don't completely understand why ppl wish to live here if they are married with kids and struggling to make it. It's a hard life, imo.

LA's home values in the 90s were undervalued because of the decades of gang crime, base closures, manufacturing losses, aerospace consolidation/moves, etc. The core of the jobs market was gutted and crime was out of control. California was on the forefront of the tech boom, though, and all those state tax dollars helped turn around the area and brought a ton of much needed jobs. LA quickly caught up and then vaulted ahead because it's a desirable place to live(weather, schools/colleges, opportunity, glam factor, etc) and it's already built out(limited inventory).

[JohnG72]

Originally Posted by bhcompy

LA's home values in the 90s were undervalued because of the decades of gang crime, base closures, manufacturing losses, aerospace consolidation/moves, etc. The core of the jobs market was gutted and crime was out of control. California was on the forefront of the tech boom, though, and all those state tax dollars helped turn around the area and brought a ton of much needed jobs. LA quickly caught up and then vaulted ahead because it's a desirable place to live(weather, schools/colleges, opportunity, glam factor, etc) and it's already built out(limited inventory).

Absolutely untrue. And in fact there was a bubble in housing prices from ~89-92. Compare the prices in 1995(the very bottom of the market) to prices from 1975-1985 and tell me once again how undervalued the market was in the 90's.

[Chelito23]

Originally Posted by wehotex

Yes, I know that homes didn't cost much then, but the dollar wasn't so highly inflated back then either and incomes were also lower. Even in my hometown Corpus christi, Tex, my parents' "ranch style" home bought in 1970 was only $16,000!!! Six years later, it sold for a whopping $24,000! Then, we moved to a larger 4 BR home for $46,000 in 1976. It's now valued at $180,000, some 37 years later. I guess that it happens everywhere, but not in such a small window of time like here in the LA area. I still don't completely understand why ppl wish to live here if they are married with kids and struggling to make it. It's a hard life, imo.

I would say that most people have been born or lived a large part of their life in the economic bubble. The prices are outrageous, but if you live here, they seem more acceptable. People pay the price to be near their roots, famlies and friends. Many like the Socal life style, they think this is the best place and wouldn't want to live anywhere else, kind of how people feel about Miami or NYC as well. To most outsiders, the LA area has the same suburban blandness combined with high prices and crippling traffic, so outsiders don't get it. It just depends on where people are from, what they value, etc. And to your point, many people did cash out and walk away and relocte to other states.

Otherwise, there are a lot of people living at home as adults, renting rooms (not apartments) in houses, living with roomates, etc. Others have connections, family businesses ties, etc to get a leg up. LA is not an easy place for a middle class outsider for sure.

[jm1982]

To OP's question. Yes it definitely was affordable at one point.I'm not sure if it will ever be affordable in the future..in 2011 prices were 'more affordable' but as we've seen those homes have been bought up by homeowners or flippers.

I bought a house in 2010 myself because I felt it was affordable at that time and didn't know how long the prices would be low. Looking back I moved too fast and should have been more picky about area.

It's definitely been an interesting market .

I think L.A is a market where you can't just look at the local economy. Of course the local economy matters. But you also have rich people buying in L.A that have investments elsewhere , for them unemployment rates do not matter because often they don't have jobs so to speak .

Another thing is the rich have gotten richer which could be one reason for the very high prices in markets like L.A and NYC
Rich people from around the world want to own properties in these cities.

If only people working in L.A were buying or allowed to buy (not suggesting this) you would see prices much lower.

I know some people are fine living at home as adults ( I did it too for a while) , renting rooms or living with roommates but I don't see this as a great long term/lifelong option.

I am guessing for many of these people , once they want to buy something/have their own family..but want to be close to L.A and family, they will continue buying in Antelope Valley lancaster , palmdale .

Personally I'd rather just move out of state to a city that I would enjoy living in....but I don't really have family nearby that I have to live near.

For some people they have the mentality that -- I will live in CA no matter what cost even if I have to drive 2 hours to work each way everyday or live in terrible areas,etc.

This is very prevalent in hispanic and other cultures and as we know , CA is 50% hispanic. I'm not saying this mentality is wrong, it's just the truth.

People sacrifice one way or the other, it seems. One just has to decide if it's 'worth it for them'

How much would you have to realistically make to buy a $1million house and not feel the pressure of that big mortgage each month ,and the huge tax payments. For some it's a year's payday but for others i'm sure it's a big burden. What other areas in their life do they have to cut back in . Can they also travel/vacation ? Can they go out to eat? I know a lady that owns a house in Santa Monica she bought when prices were lower maybe 400k or so ..prob worth 1.1+ now. She said she never goes out to eat. Not totally if it's true or not. But i'm sure her and her husband must at least feel like they have to cut back in ways to afford their payments. I doubt going out once and a while would really be devastating to her finances.

I wonder how many people stay in L.A because of ego or pride. How many people wouldn't consider a more affordable area because of fear that their family and friends would view them differently. I'm sure there has got to be some out there.

One thing is for sure , L.A is continuing to gentrify . The old mall that served the lower or middle classes is now the upscale luxury brand mall targeting the rich and wealthy tourists (Santa Monica Place,etc) , the old downtown dive bars where working class/poor folks used to drink are now refashioned into hipster lounges where the drinks are higher priced and the clientele wealthier.

These changes might not be great for poor, lower or middle class people but for upper middle class and the rich it can make L.A a nicer place to live. More services ,restaurants ,bars ,amenities that cater to them.

[CA4Now]

Originally Posted by bhcompy

LA's home values in the 90s were undervalued because of the decades of gang crime, base closures, manufacturing losses, aerospace consolidation/moves, etc. The core of the jobs market was gutted and crime was out of control.

What? Not the L.A. that we--or anyone else we know--lived in.

[HuntingtonHenry]

Yes, it used to be affordable. Housing bubble ruined it.

[ccm123]

While I knew friends and family who bought and sold at the right time, I know some that "lost their shirts" on the housing market.

Originally Posted by HuntingtonHenry

Yes, it used to be affordable. Housing bubble ruined it.

[bhcompy]

Originally Posted by JohnG72

Absolutely untrue. And in fact there was a bubble in housing prices from ~89-92. Compare the prices in 1995(the very bottom of the market) to prices from 1975-1985 and tell me once again how undervalued the market was in the 90's.

Not quite