(CNN / Zillow) A $1 million starter home is now the norm in more than 200 US cities (1 Viewer)

[Chomsky]

CNN Article:

(CNN) A $1 million starter home is now the norm in more than 200 US cities

Zillow Source:

A $1 Million Starter Home is the Norm in 237 Cities

In more than 200 U.S. cities, buyers will find a price tag of $1 million or more on the typical starter home. A housing shortage that worsened over the

www.zillow.com

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CNN Excerpt:

CNN —
The number of US cities where first-time homebuyers are faced with at least a $1 million price tag on the average entry-level home has nearly tripled in the past five years, according to new research.

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Zillow Excerpt:

Among metropolitan areas, the New York City metro, which includes parts of New Jersey and Pennsylvania, has the most cities with million-dollar starter homes at 48. The San Francisco metro has the next highest count at 44, then Los Angeles (35), San Jose (15), and Miami and Seattle, each with eight. Irvine, with a population of more than 300,000, is the biggest city with $1 million starter homes.

Commentary:

IMHO $1M is a lot of coin for an entry-level house. But it would seem the given localities provide income opportunities commensurate with the housing prices.

Some of us keep asking ourselves,

"How much higher can these areas' housing & cost-of-living continue to rise?"

 

[Cork]

Is there a solution?

How would you fix it?

 

[Atreus21]

If you want to reduce prices, increase supply.

 

[eman623]

IMHO $1M is a lot of coin for an entry-level house. But it would seem the given localities provide income opportunities commensurate with the housing prices.

Some of us keep asking ourselves,

"How much higher can these areas' housing & cost-of-living continue to rise?"

There are about 19,000 incorporated cities in the USA.

18,763 of them seem to still be affordable,

 

[Craig234]

If you want to reduce prices, increase supply.

Make more land! While that isn't quite the same issue, there is only so much land available for housing without harming other things. Like say National Parks. Here's another idea to make housing more affordable: reduce the financial exploitation of it and make it more a normal market of buyers and sellers. We don't need massive 'wealth funds' driving prices up artificially.

 

[Grand Mal]

If you want to reduce prices, increase supply.

Since there's probably no way to decrease demand, that's probably the only free-market solution.

 

[Ikari]

If you want to reduce prices, increase supply.

It's a captured market, increasing supply isn't going to simply reduce prices.

 

[ttwtt78640]

If you want to reduce prices, increase supply.

The supply of land for housing in or near many places can’t be increased.

 

[Bok Tuklo]

If you want to reduce prices, increase supply.

Difficult to do when homeowners have local regulatory capture.

 

[daeler]

Lots of office space going to waste, turn some of those into apartments.

1 million is a bit too large for a starter home......

 

[ttwtt78640]

Difficult to do when homeowners have local regulatory capture.

Yep, NIMBYism rules. Since many local governments get lots of revenue from property taxation, they have a vested financial interest in having their assessed property values increase.

 

[Ikari]

Difficult to do when homeowners have local regulatory capture.

And that enough of the market is controlled by corporate entities who then collaborate to price set.

 

[Anagram]

There are about 19,000 incorporated cities in the USA.

18,763 of them seem to still be affordable,

If you define affordable as anything less than a million dollars. My home is barely over half that and the mortgage would not be affordable at all for anyone making under six figures.

 

[NatMorton]

Some of us keep asking ourselves,

"How much higher can these areas' housing & cost-of-living continue to rise?"

The answer is easy. As high as the market will bear.

 

[Checkerboard Strangler]

CNN Article:

(CNN) A $1 million starter home is now the norm in more than 200 US cities

Zillow Source:

A $1 Million Starter Home is the Norm in 237 Cities

In more than 200 U.S. cities, buyers will find a price tag of $1 million or more on the typical starter home. A housing shortage that worsened over the

www.zillow.com

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CNN Excerpt:



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Zillow Excerpt:



Commentary:

IMHO $1M is a lot of coin for an entry-level house. But it would seem the given localities provide income opportunities commensurate with the housing prices.

Some of us keep asking ourselves,

"How much higher can these areas' housing & cost-of-living continue to rise?"

A Zillow paid article that offers exactly ZERO in terms and definitions.
How many SQUARE FEET? How many BEDROOMS? How many BATHROOMS? Is there a GARAGE? Is there CENTRAL HEAT or CENTRAL A/C?
How big are the YARDS?

Nothing, so to take this at face value we are forced to pretend that we're too stupid to even know what a starter home even is, but Zillow says they hold the magic.

 

[Ikari]

The answer is easy. As high as the market will bear.

As high as the market can be manipulated to.

The property owners and corporations buying all this up don't want homeowners, they want renters. They need to price to be so high that normal people cannot afford to buy and are, instead, forced to rent.

 

[Jkca1]

There are about 19,000 incorporated cities in the USA.

18,763 of them seem to still be affordable,

Yeah, the devil is still in the details, isn't it?

 

[TU Curmudgeon]

CNN Article:

(CNN) A $1 million starter home is now the norm in more than 200 US cities

Zillow Source:

A $1 Million Starter Home is the Norm in 237 Cities

In more than 200 U.S. cities, buyers will find a price tag of $1 million or more on the typical starter home. A housing shortage that worsened over the

www.zillow.com

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CNN Excerpt:



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Zillow Excerpt:



Commentary:

IMHO $1M is a lot of coin for an entry-level house. But it would seem the given localities provide income opportunities commensurate with the housing prices.

Some of us keep asking ourselves,

"How much higher can these areas' housing & cost-of-living continue to rise?"

The answer to your question is "As high as the housing speculators can push it."

Besides, it's all Biden's fault.

If Mr Trump were to be the President it would be a matter of "American Pride" that "The best that your parents could do was to buy starter homes that cost under $100,000 but NOW, under my inspired leadership, you are buying starter homes that are priced ten times higher.".

 

[Plasmaball]

As high as the market can be manipulated to.

The property owners and corporations buying all this up don't want homeowners, they want renters. They need to price to be so high that normal people cannot afford to buy and are, instead, forced to rent.

It's not that cut and dry.
These people do though play a huge part in this.
You have:
1) people with low rates who don't want to lose that
2) those same people expecting higher payouts
3) agents suggesting houses be worth more driving up the market.
4) depending on the area ( Midwest and where I live houses are in a hot market. If you look towards Arizona and Austin you see the market coming back down.
5) greed of people. Which is 3 and 4 combined
6) shortage of houses depending on the area. Houses here don't tend to last long.
7) flippers coming in paying cash, doing a quick flip and charging a lot more for a house. Thus driving up the market.
8) shortage of homes being made or put on the market. Depends on the area again but overall house creation is a problem. Supply and demand play a factor here.

I'm planning to jump in come October. You still have people waving things here all the time. You are slowly seeing being able to get some concessions from the sellers, but it depends on how long the house has been sitting.

 

[TU Curmudgeon]

Since there's probably no way to decrease demand, that's probably the only free-market solution.

Of course, the US could do something to bring housing prices down if it would eliminate the extortionate duties and tariffs (imposed in order to ensure that the domestic building materials industry could maintain it high profit levels) on imported building materials.

 

[TU Curmudgeon]

The supply of land for housing in or near many places can’t be increased.

Not a problem, when Mr Trump is elected he will create more land and make Canada and Mexico pay for it.

 

[TU Curmudgeon]

Lots of office space going to waste, turn some of those into apartments.

1 million is a bit too large for a starter home......

Unfortunately not a lot of that office space CAN be converted into apartments - unless, of course, you want to have communal toilets, showers, cooking facilities, and the like.

 

[Peter]

Is there a solution?

How would you fix it?

Build more affordable housing.
Maybe get away from the single family occupancy model and build suburbs that aren't carcentric hellholes?
Have shops and services within walking distances of housing and have paths and bike lanes that people can actually use.

 

[noonereal]

CNN Article:

(CNN) A $1 million starter home is now the norm in more than 200 US cities

Zillow Source:

A $1 Million Starter Home is the Norm in 237 Cities

In more than 200 U.S. cities, buyers will find a price tag of $1 million or more on the typical starter home. A housing shortage that worsened over the

www.zillow.com

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CNN Excerpt:



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Zillow Excerpt:



Commentary:

IMHO $1M is a lot of coin for an entry-level house. But it would seem the given localities provide income opportunities commensurate with the housing prices.

Some of us keep asking ourselves,

"How much higher can these areas' housing & cost-of-living continue to rise?"

These starter homes are nothing like the great generation starter home.

 

[Peter]

Unfortunately not a lot of that office space CAN be converted into apartments - unless, of course, you want to have communal toilets, showers, cooking facilities, and the like.

There are loads of ways to convert offices into flats with all the normal amenaties.
Why do you think it would be so hard?
We manage in Europe all the time and don't use communal anything other than sometimes communal gardens.