No, the tail end of that chart is the significant increase in a monthly payment due to interest rates on a 30yr jumping from low 3% to mid-5%. Home prices will start to drop in fact and homes will stay on the market longer too
Housing market
- Thread starter simply1
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it is an issue in bigger cities since they don't have enough houses to house their workforce. The houses they are building are bigger than they need to be and they aren't building enough smaller homes that young families can use as starter homes or retired people can downside to while still living in the same community.
Inventory needs to increase as well. A big problem in this country is very few cheap homes are being built. If you've got a 1/4 acre lot, developers make a lot more $$ building $500k houses than they do $200k houses. I don't know what the solution is. I suppose at some point if they build enough "expensive houses" there will be enough inventory that they will no longer be expensive? Or, the only "cheap" housing will be multi-family. It seems like the days of building small, single family houses is gone.
Cities zone to keep cheap housing in short supply (huge problem in California). Not enough taxes in it apparently.
yep, this problem is actually not generally on the home builders. People don't want the "cheap houses" in their neighborhood.
This has got to be the highest rates of been since the early to mid 2000’s. 
It happens everywhere but if you're asking where else is it a major issue outside California looks like NYC and Seattle have large homeless populations (generally a pretty good indicator of lack of available affordable housing)
If you could build 10 big houses and sell each for $500k, or build 15 small houses and sell each for $250k, which would you do?
It's logistically easier (cheaper) to build less houses too, and governments and neighbors both like high-dollar houses (tax money and raising existing property values).
I think we need to get our heads around building owned-apartment blocks and people buying "flats" as in Europe. Those are more profitable per unit at a lower price. We do build townhomes here, similar, but they take up a lot more space per unit than say a 4 or 5 story building.
However, demand isn't really there for these, as people have the white picket fence dream still in their heads. Neighbors don't want them, because they perceive them as "renters" who bring values down, even though it's just vertical townhomes.
Affordable housing I think refers to apartments usually. Using your logic in paragraph one it is logistically easier to get one construction loan for 1 apartment building than 10 big houses. Pretty sure the real answer is people just don't want "poor" neighbors
It’s supply and demand. If there’s a buyer for the $500,000 price point, that’s what they’re going to build. With rates going up, thats Definitely going to affect the market for that price point.
with the highest population in the US by over 10 million.... Of course CA will have the most/best/worst in many topics.
That sounds right. We got 4.875% on our first house in 2010. I remember then the message was "rates will never be this low again!"
Feeling very thankful for our 2.625% mortgage right now. At today's rate, it would add $500+ to our monthly payment.
We just looked at a place today. With the increase in rates and the bloody awful taxes around here our payment would go up $1500/mo.
It's going to take a lot to get me out of my current situation
Since 2008! Still below historically average rates but we've been REALLY spoiled since 2008 and especially when rates plummeted in 2020.
I meant logistics like timing the different subs, having more customers to deal with, etc. But totally agree, no one wants anything besides the Taj Mahal built near them. What's the old saying? "always buy the cheapest house on the block"