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The value of the home should be 2.5 times the value of the land. Cheap "affordable" homes are a non-starter in any desirable zip code.
I wasn't specifically stating that should be the reality, there is a relative lack of any smaller newer houses being built at any price point. Larger sqft new construction has altered the overall makeup of the real estate inventory, preventing newer buyers from entering the market because of the inherent higher entry point of most larger sqft houses, for those that don't want anything to do with owning a condo, townhouse, etc. Right now the lack of inventory in most of the country is so severe that it is still pushing prices up substantially in many cases.
Homeowners are making huge gains (on paper until they sell) on property appreciation, and renters are getting crushed by rental price increases, that make it harder for them to own a home some day.
The stock market rise since 2008 did the same thing for the 55% that own stock, versus the ~45% that do not.
The gap between the haves, and the have nots, has been widening since 2008, and is in widening more rapidly now.
Inflation is pouring salt on an open wound that renters have.
The federal gov't can't do much more to help those at the financial bottom because they already pay no net federal income taxes. All the gov't can do now is reduce their payroll taxes, or implement more cash giveaways, like Yang suggested.
Forced wealth/income redistribution isn't keeping up with the freefall of the bottom 1/3rd to 1/2 anymore. They are falling off the financial cliff. All they can do is partner up as roommates to share rentals to get by.
Landlord raising the rent is actually better than taking the unit off the rental market. Some property owners without mortgage, would rather leave the unit vacant and appreciating in value, than deal with renters.
Yes rents have gone up in some cities, but let's not forget that many were down during the pandemic so it's only natural to see them climb back in the range they were in. Of course many will continue to ignore this and continue on with their whine party.
From May 2021
Cities where average one-bedroom rents are decreasing
1.San Francisco
The price to build new is up over 50% in 36 months. So building new will set you back even more. I know people who owned property who plan to build their dream homes and are now having to cancel those plans. Way to go Brandon!
. higher section 8 occupancy, and all the nighttime flying and bussing of illegals taking up more rental stock.
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I suspect this is the large part of the answer.
When something is being subsidized by the taxpayers, the price goes up for everyone. Even those that don't get help/subsidies.
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