For almost a century now the key to having equity growth was housing. It’s how previous generations of Americans got their tickets to the middle class. They bought a house in the 50s-70s and it grew in value into the current year, growing their net worth and their wealth.
But now those houses have all seen their prices increase.
A house that was bought at $200k several decades ago is now $700k, can it really go higher? Is an “average middle class house” really going to be $1.2 million dollars?
I just don’t see how buying a 1700 sq ft normal house in a normal area that’s nothing special for $700k right now could possibly be a good investment (I’m speaking strictly in terms of money, I know having a home is desirable for non-financial reasons).
Can the prices really go higher? Our parents bought “starter homes” and those grew in price which allowed them to, with savings, buy permanent homes.
But those “starter homes” are now $475,000. Probably the same if not higher than the cost of the permanent homes they upgraded from their starter homes.
If $400-500k is the price for a starter home, can I really expect my purchase of a 1000 sq ft home on less than a quarter acre in an average small town or small city to be worth $700-800k?
And if so, who the hell is going to buy it?
How are we expected to get in on the game when the ticket cost is $400k?
How the hell is that going to work? How does this trend possibly continue?
It feels like the previous generations got on this ladder but now it’s been pulled up to high to get on.
My mom always said you buy a house and it grows in value. Well it feels like all the houses have grown in value. It already happened. It’s over. And even if it isn’t over and they keep going up in value it’s already out of reach and if it continues it’ll just become more out of reach.
Seems like to has to crash, which if it does than all the people who bought a house in the last few years are going to be in the red for a long time, if forever.
Rate Cuts Won’t Make Housing More Affordable, Bloomberg Survey Shows
A majority of current renters in the US say they can’t afford to buy a home, with over half of Americans saying that they are pessimistic about ever achieving their goal of homeownership, per a new CNN poll.
CNN’s study found that 86% of current renters in the United States can’t afford to buy a home as one hallmark of the American dream drifts increasingly out of reach for thousands of families.