How are people affording these crazy home prices?

[Rich M]

Yeah I’m not sure most 1500 square foot houses are affordable. Unless you live in some podunk town

I live in a 1,200 sf place in Orlando. Been here for 24 yrs.

 

[Underandoverit]

Apparently people aren't able to afford these crazy home prices. There was a 18% rise in homelessness in America in 2024. Buckle up...

 

[WeiserBucks]

Apparently people aren't able to afford these crazy home prices. There was a 18% rise in homelessness in America in 2024. Buckle up...

That's drugs, not home prices.

 

[4090Sharps]

That's drugs, not home prices.

In the America I want to live in, you can afford both.

 

[ddd-shooter]

Knowing how a hammer, saw and speed square can sure help.

I work in construction. I get your point. But were a lot of factory workers building their own houses in the 70s and 80s?

I live in a 1,200 sf place in Orlando. Been here for 24 yrs.

Yeah, I could tell you haven’t looked at the reality of the housing market lately.

I don’t think anyone here is saying people shouldn’t have to work hard for a home. Or get creative, or act different or really be weird in this day and time to afford a place to live.
But to dismiss today’s difficulty in purchasing a home (the most expensive time ever) or to forget how comparatively easy it was for previous generations to own a home is tone deaf.
That said, I’m not sure that without some major economic trend shift, my gen z and gen alpha nieces will EVER own homes. Seriously.

 

[browning2480]

For those wanting to use a VA loan, make sure you really check it first. There are lots of fees that make them not the best from a loan perspective. Just do the math and make sure it makes sense for you.

 

[WeiserBucks]

For those wanting to use a VA loan, make sure you really check it first. There are lots of fees that make them not the best from a loan perspective. Just do the math and make sure it makes sense for you.

What fees? The only fee I paid was for a required foundation inspection, I think it was $400.

 

[Speaks]

Yea its crazy what prices are up to. Bought my place in 2015 and easily doubled in value, really should have pulled together the extra $100k to get a similar place on an acreage back then.

Still starting to shop though and will pull the trigger fall 2025 or spring 2026 on what will at least be intended to be a forever home. Luckily where I live you can still get a nice house on 20 acres for under $1mm.

 

[Weldor]

Stalled down here, they have been trying to sell cracker boxes down the hill for 3 years. Start at $380,000 for a tiny house on a tiny lot behind a grocery store plaza. The other one the houses are on just short of a acre start at $875,000. The wages don't support those numbers. Nobody living in them looks like a movie set. A buddy says they will eventually turn the little ones into section 8 because the hedgefunds want their money. Been 3 years in the building and they are not even half way down the street. Even the out of state retirees are not buying them.

 

[Wrench]

I work in construction. I get your point. But were a lot of factory workers building their own houses in the 70s and 80s?

Yeah, I could tell you haven’t looked at the reality of the housing market lately.

I don’t think anyone here is saying people shouldn’t have to work hard for a home. Or get creative, or act different or really be weird in this day and time to afford a place to live.
But to dismiss today’s difficulty in purchasing a home (the most expensive time ever) or to forget how comparatively easy it was for previous generations to own a home is tone deaf.
That said, I’m not sure that without some major economic trend shift, my gen z and gen alpha nieces will EVER own homes. Seriously.

Pretty basic. I see developments marketing to first time buyers. Big mistake.

Go find the shittiest house in the nicest neighborhood you can afford to own......I didn't say buy, I said own. If you can afford to own it, you csn afford to buy it.

Now, fix that pos up as you live in it and watch your equity skyrocket.

I paid cash for my 3rd home after doing this 2x over 10 years. By junk, make it awesome and repeat.

 

[HuntHarder]

I wish I could say the building has stalled in Phoenix. I work in an industry that has a pretty good gauge of the new houses being built. The numbers keep going up with more large parcels bought by housing developers. The average starting price of a tract home has to be somewhere near $600,000. Commercial condo high rises are the new thing as the developers realized they could get even more $$$ with a smaller land purchase.

 

[Weldor]

I bought a foreclosure after 2008, 1m shack for $180,000. Put about $27000 in it new kitchen paint floors bathrooms. Did the work myself. They are out there if you don't mind sweat equity.

 

[ada5771]

agreed!

 

[CorbLand]

I wish I could say the building has stalled in Phoenix. I work in an industry that has a pretty good gauge of the new houses being built. The numbers keep going up with more large parcels bought by housing developers. The average starting price of a track home has to be somewhere near $600,000. Commercial condo high rises are the new thing as the developers realized they could get even more $$$ with a smaller land purchase.

Same here. More and more houses still going up and townhouses are becoming more and more popular.

Pricing has stabilized but houses are still selling and they haven’t come down much.

My wife and I are above average income and there is no way we could afford to buy with current pricing and interest rates.

 

[loganwayne]

Pretty basic. I see developments marketing to first time buyers. Big mistake.

Go find the shittiest house in the nicest neighborhood you can afford to own......I didn't say buy, I said own. If you can afford to own it, you csn afford to buy it.

Now, fix that pos up as you live in it and watch your equity skyrocket.

I paid cash for my 3rd home after doing this 2x over 10 years. By junk, make it awesome and repeat.

This is pretty much what we have done. Except my wife was the only grandchild and all her grandparents left their houses to her. One was a small block house but just renovated. The other was a much older farm house that was in rough shape. Took some convincing but we moved into old farm house and rented the block house. Now we are about to.buy another house in the block house street as another rental.
We will be debit free by 40s or we could sell all and buy us a bigger piece of property. Not sure which we will do yet.

 

[Wrench]

I REALLY can't wait for the kids of the big money transplants in Idaho to become of homeowner age. Lot's of people made big money in California and moved to Idaho and Montana. The kids are not going to be so lucky when they realize they can't make dad's income here and have to either live in an apartment or go somewhere that pays well.

 

[Weldor]

One could also look at the cost of a pre built track home and having a place built on your land. compare price per square foot. With land of course.

 

[Wrench]

This is pretty much what we have done. Except my wife was the only grandchild and all her grandparents left their houses to her. One was a small block house but just renovated. The other was a much older farm house that was in rough shape. Took some convincing but we moved into old farm house and rented the block house. Now we are about to.buy another house in the block house street as another rental.
We will be debit free by 40s or we could sell all and buy us a bigger piece of property. Not sure which we will do yet.

You will love it. I was debt free at 42. I paid cash for my last truck a couple years ago. We now save money at a rate that lets us pay cash for everything while living a good life. We are far from fancy, but we have a great life and my wife can stay at home with our kids.

I worked my ass off through my 20s and 30s to make it happen and it's not a short game, but now at 50 I live a life young people would be happy to have.

Stay the course!

 

[Wrench]

One hidden gem in living in a fixer is the relationship development. If you have a spouse that can handle being dirty, not having the fanciest and willing to work with you.....you will have far fewer arguments in your future.

If you have a princess......god help you.

 

[2531usmc]

It truly sucks. I feel like we’re in the club of we can “never afford to upgrade”. Between having locked in a low interest rate and a crazy affordable payment it’s too good to stay put. So we’ve spent so me serious bucks remodeling and that’s ok too.

I think a way for anyone to try and find an entry point into the housing market is to play the stock market. Invest your way into getting a down payment or more. That’s probably what i would do. Honestly if housing keeps going up it might not be worth trying to buy a house. Depends on the area i suppose.


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One of the reasons housing prices shot up is because the stock market shot up.

People cashed out of an overpriced stock market and bought overpriced homes.

But the stock market is cyclical….good times and bad times. And I think we’re getting ready to enter a bad time if not a very bad time….