How are people affording these crazy home prices?

[wind gypsy]

Out of curiosity, for those that are older than me, when did buying a house start to get advertised as an investment? Has it always been that way or is that something newer?

I was born in 91 and I cant remember a time when someone said you buy a house to live in it. You buy a house to make money is all I have ever heard.

Born in '85. There are lots of different scenarios but I would say in general the jist has always been more "get some equity for your $ rather than giving it all away with rent" rather than buying a house for an investment.

That said, it was common for many friends and family around me starting at college age to consider the first home purchase being one that could become a rental property in the future.

 

[wind gypsy]

A lot of people are going into this with reckless abandon. I'm just waiting on the crash like in 2008 so I can swoop up a new house for cheap.

I'm no nostradamus but there seems to be a fair chance you'll be waiting a while.

 

[CorbLand]

I am just curious if this idea that a house is a financial investment and creates great returns concept is correlated with the size and cost increases.

I just know that for me and many I talk with my age, it has been taught to us that you buy a house as an investment and to live in and its in that order. So many go out and buy the biggest house they can afford because the return on them is generally higher. Granted, I do live in an area that most have more kids than the national average.

 

[Reburn]

Born in '85. There are lots of different scenarios but I would say in general the jist has always been more "get some equity for your $ rather than giving it all away with rent" rather than buying a house for an investment.

That said, it was common for many friends and family around me starting at college age to consider the first home purchase being one that could become a rental property in the future.

Fixed it for you
That said, it was common for many friends and family around me starting at college age to consider the first home purchase being one that could become a property to fall back to after a divorce......


I'm an 81'.
Same mentality though.

 

[Dos Perros]

From a Pew Research article:

“The wealth gap between upper-income and lower- and middle-income families has grown wider this century. Upper-income families were the only income tier able to build on their wealth from 2001 to 2016, adding 33% at the median. On the other hand, middle-income families saw their median net worth shrink by 20% and lower-income families experienced a loss of 45%. As of 2016, upper-income families had 7.4 times as much wealth as middle-income families and 75 times as much wealth as lower-income families. These ratios are up from 3.4 and 28 in 1983, respectively.”

You need to scroll down a bit to get past the section on income to the net worth discussion.

1. Trends in income and wealth inequality

Barely 10 years past the end of the Great Recession in 2009, the U.S. economy is doing well on several fronts. The labor market is on a job-creating

www.pewresearch.org

Helpful link, thank you.

I was mistaken, upper income tier has grown by 33% since 1971, while lower income tier has grown by 16%. Understanding social program spending has increased dramatically in this time frame I think it's an overall success.

 

[txjustin]

A lot of people are going into this with reckless abandon. I'm just waiting on the crash like in 2008 so I can swoop up a new house for cheap.

Don’t hold your breath. Also, real estate is HIGHLY localized.


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