Housing market

[BCClone]

This is definitely going to end well:

NIMBY Marc Andreessen Gives WeWork’s Adam Neumann $350 Million to, Uhh, Solve the Housing Crisis

Andreessen, who is against affordable housing in his town, is throwing money at Neumann to disrupt the rental market.

www.vice.com

I have twice the idea and will take half the funds. I will let you know what it is after the check clears.

 

[clonechemist]

1918 Tremont St, Cedar Falls, IA 50613 | Zillow

1918 Tremont St, Cedar Falls IA, is a Single Family home that contains 1204 sq ft and was built in 1932.It contains 3 bedrooms and 1 bathroom.This home last sold for $135,000 in June 2023. The Zestimate for this Single Family is $175,300, which has decreased by $1,945 in the last 30 days.The...

www.zillow.com

Pretty nice part of CF, maybe 6 blocks from the downtown area.

$120,000 note on that house would be less than $800/month.

But most won’t buy that and instead someone will rent this for $1,200/month: https://arabellacf.com/floor-plans/

I wouldn’t call Cedar Falls BFE and I’d say it’s a decent job market with good earning potential.

Where’s the $30k down payment coming from for our hypothetical new grad?

How is he/she qualifying for a mortgage with limited credit?

Do you think this is a good time to buy with current interest rates and potentially over-inflated home values?

What if he/she finds a better job opportunity elsewhere in 1-2 years? Most people starting out are expecting to change positions and potentially relocate 1-2 times within 10 years, and transaction costs can really eat into any equity gains compared to renting.

 

[BCClone]

Where’s the $30k down payment coming from for our hypothetical new grad?

How is he/she qualifying for a mortgage with limited credit?

Do you think this is a good time to buy with current interest rates and potentially over-inflated home values?

What if he/she finds a better job opportunity elsewhere in 1-2 years? Most people starting out are expecting to change positions and potentially relocate 1-2 times within 10 years, and transaction costs can really eat into any equity gains compared to renting.

That house is a mansion compared to our first.

 

[clonechemist]

That house is a mansion compared to our first.

‘Our’ indicates you were already coupled up?

That alone yields economic benefits that most new grads aren’t seeing - most are single. Hence, wanting to live in an area with the lots of other young people.

Nothing against small town living, but it’s a fantasy to pretend it’s a universal solution to young people’s struggles.

 

[BCClone]

‘Our’ indicates you were already coupled up?

That alone yields economic benefits that most new grads aren’t seeing - most are single. Hence, wanting to live in an area with the lots of other young people.

Nothing against small town living, but it’s a fantasy to pretend it’s a universal solution to young people’s struggles.

Then rent like I did when I graduated from college. I said our because my wife and I rented until we were married.

 

[clonechemist]

Then rent like I did when I graduated from college. I said our because my wife and I rented until we were married.

@farminclone is arguing here that new grads should buy in small towns rather than rent in a bigger city. And implying that youth today are causing their own problems by not following that advice.

 

[cycloneworld]

Checking in on home prices in the Des Moines area, seems like things are sitting on the market a bit longer but inventory is still very low.

 

[BCClone]

@farminclone is arguing here that new grads should buy in small towns rather than rent in a bigger city. And implying that youth today are causing their own problems by not following that advice.

Recent grads? Actually data I’ve seen has suggested that you are money ahead if you just rent. While there is appreciation of the house, the interest and large capital item you sit on puts you worse off financially than just renting.

 

[DeereClone]

Where’s the $30k down payment coming from for our hypothetical new grad?

How is he/she qualifying for a mortgage with limited credit?

Do you think this is a good time to buy with current interest rates and potentially over-inflated home values?

What if he/she finds a better job opportunity elsewhere in 1-2 years? Most people starting out are expecting to change positions and potentially relocate 1-2 times within 10 years, and transaction costs can really eat into any equity gains compared to renting.

I’m not sure I’ve ever said new grads….the poster that was whining about “nothing in his life being normal since 9/11” that got this whole thing started is in his upper 30s.

I’m not opposed to renting for a few years out of college, would probably suggest it actually, but at some point you have to transition to ownership and simple ranch houses are pretty affordable in a lot places.

 

[keepngoal]

1918 Tremont St, Cedar Falls, IA 50613 | Zillow

1918 Tremont St, Cedar Falls IA, is a Single Family home that contains 1204 sq ft and was built in 1932.It contains 3 bedrooms and 1 bathroom.This home last sold for $135,000 in June 2023. The Zestimate for this Single Family is $175,300, which has decreased by $1,945 in the last 30 days.The...

www.zillow.com

Pretty nice part of CF, maybe 6 blocks from the downtown area.

$120,000 note on that house would be less than $800/month.

But most won’t buy that and instead someone will rent this for $1,200/month: https://arabellacf.com/floor-plans/

I wouldn’t call Cedar Falls BFE and I’d say it’s a decent job market with good earning potential.

Just down the street from my grandmas, same style house …. House sold to a “family” in 2002, rented within a week of closing.

 

[mynameisjonas]

Checking in on home prices in the Des Moines area, seems like things are sitting on the market a bit longer but inventory is still very low.

Maybe things are changing in August, but in July the average house in the Des Moines area was only on the market for 11 days before it sold. And in July inventory was higher than any month in the last year. (But still low compared to normal if you look at a 5 year chart). And out of all the sales in July sellers are getting on average 100% of what they are asking for. So, maybe it’s softened a little, but as of July, we’re still in a sellers market for sure.

 

[BryceC]

Like I mentioned earlier, every generation says the generation before had it easier and the generation after them (when they are older) pees away money. Things are just different and it’s rougher in the beginning with less resources and knowledge to assist you.

I'll be 100% honest here you're wrong. New housing starts went way, way down after '08 and it's not debatable that college debt is a much bigger problem now. That isn't the fault of this generation. It is harder to get going.

In 1994 the tuition was 1,145. When I started in 2000 it was something like 1,500 and change. even accounting for inflation that's just nothing.

 

[BCClone]

I'll be 100% honest here you're wrong. New housing starts went way, way down after '08 and it's not debatable that college debt is a much bigger problem now. That isn't the fault of this generation. It is harder to get going.

In 1994 the tuition was 1,145. When I started in 2000 it was something like 1,500 and change. even accounting for inflation that's just nothing.

Now do median household income. You will see that that rose significantly more than inflation also. Looking at one thing in an income/expense situation doesn’t show much. How about interest rates? Students received some pretty nice Covid kickbacks (1/2 semester plus) these last couple years.

 

[CloniesForLife]

Now do median household income. You will see that that rose significantly more than inflation also. Looking at one thing in an income/expense situation doesn’t show much. How about interest rates? Students received some pretty nice Covid kickbacks (1/2 semester plus) these last couple years.

Do you have a link to backup your first 2 sentences? That doesn't seem right to me.

 

[BCClone]

Do you have a link to backup your first 2 sentences? That doesn't seem right to me.

I just googled median household income 1994 and then for 2022. Iirc, 1994 was 33k and 22 was 87k. I then put 94 into the inflation calculator that Google gave me.

 

[SEIOWA CLONE]

I'll be 100% honest here you're wrong. New housing starts went way, way down after '08 and it's not debatable that college debt is a much bigger problem now. That isn't the fault of this generation. It is harder to get going.

In 1994 the tuition was 1,145. When I started in 2000 it was something like 1,500 and change. even accounting for inflation that's just nothing.

Housing starts bottomed out in 2009 at 554,000 and have risen every year since then, 2021 there were 1.6 million new housing starts in the US.

Housing Starts Data & Statistics

Detailed statistics about new housing starts, from permit authorizations to completions, at the national, regional, and state level.

ipropertymanagement.com

 

[KnappShack]

Don't think I've seen a rent-to-income published in my work. As usual higher incomes do better but a 23% ratio seems workable

 

[NATEizKING]

I just googled median household income 1994 and then for 2022. Iirc, 1994 was 33k and 22 was 87k. I then put 94 into the inflation calculator that Google gave me.

~33k for 1994 and ~67k for 2021 is what I'm seeing. Google says inflation rate from 1994 to today is 2.24% so 33k in todays dollars is about 60k.

 

[BCClone]

~33k for 1994 and ~67k for 2021 is what I'm seeing. Google says inflation rate from 1994 to today is 2.24% so 33k in todays dollars is about 60k.

I double checked and see the87 is average household. Not finding median. The 33k in 94 is household , the 67 you used is wages ( individual). Household was 87

 

[dmclone]

New figures the Des Moines Area Association of Realtors released Monday showed 1,452 homes were sold in the region in July, down 14.7% from the 1,703 sold in July 2021.

The median home sale price in July was $272,990, down from $283,500 in June, the record high for the market. Sale prices can be volatile, but it was the first drop since February.