OT-California home prices...

[HBK4life]

Been watching house hunters and flip or flop and my gawd. I've seen 800-900 square foot homes with 1 bathroom for 500 k in California?? Look, I get the whole Cali weather and lifestyle but I would like to start a show to show these people what 500 k will get you in Lincoln, KC, basically any where outside Hawaii or Hamptons. Will get you 5,000 square foot 5 bed-4 baths with a media room. Just learn to deal with a few months of cold weather you weenies. If I spend half a mill on a house its gonna have more than one bathroom and be bigger than my old apartment!! End of rant.

 

[CameronKrazie86]

When I lived in Oakland, my rent was $1735 with only trash and sewage paid for. My place was like 450 square feet. Very nice apartment for what it was but obviously tiny. It was the cheapest 1 bed, 1 bath place I could find... that was 5 years ago. That same place is now $3600 a month. I honestly have no idea how anyone that isn't making $75,000 a year can survive out there anymore, hell even that may be too little.

 

[barney44]

Don't show them anything! We don't want a bunch of them showing up in Nebraska..

 

[HBK4life]

Don't show them anything! We don't want a bunch of them showing up in Nebraska..

LOL, They already took over Colorado and are trickling into Montana, Wyoming, Utah..etc

 

[GretnaShawn]

When I lived in Oakland, my rent was $1735 with only trash and sewage paid for. My place was like 450 square feet. Very nice apartment for what it was but obviously tiny. It was the cheapest 1 bed, 1 bath place I could find... that was 5 years ago. That same place is now $3600 a month. I honestly have no idea how anyone that isn't making $75,000 a year can survive out there anymore, hell even that may be too little.

$3600/month is $43,200/year for rent. You'd better be making more than $75k to live there.

 

[mothmonsterman]

It's not the weather that drives up the price. It's really, really hard to build anything in California, environmental impact studies alone drive prices through the roof. There are hundreds and hundreds of other loopholes specifically designed to discourage development, this restricts the housing supply to a degree that makes large portions of the state unaffordable to most people. Texas has seen as much or more population growth, but their more reasonable regulatory environment has kept housing prices low.

 

[CameronKrazie86]

$3600/month is $43,200/year for rent. You'd better be making more than $75k to live there.

Thanks, math was never my strong suit.

 

[RedSea]

LOL, They already took over Colorado and are trickling into Montana, Wyoming, Utah..etc

Yes, a lot of them are well aware of what their equity will buy elsewhere. Corporations are moving to Texas, Californians are following them, etc. My uncle raised three kids in southern california, and two of the three left the state for good pretty soon after becoming adults. I have no idea how the lower wage earners survive there.

 

[mothmonsterman]

Yes, a lot of them are well aware of what their equity will buy elsewhere. Corporations are moving to Texas, Californians are following them, etc. My uncle raised three kids in southern california, and two of the three left the state for good pretty soon after becoming adults. I have no idea how the lower wage earners survive there.

Don't be surprised in the Calpers pension crisis ends up forcing the political class to try to expropriate Silicon Valley, which will mean that Apple and Google will probably be moving out of the Bay Area and setting up shop in the Lone Star State or Arizona.

 

[redfanusa]

Austin is not much better than California. There are 900 sq. ft. rat traps selling for $450k in central Austin. People buy them just to tear down. The prices are insane. We wanted to limit the commute and live somewhere with "character," but after trying to decide how four people could squeeze in a 1,400 three bedroom we decided to hit the 'burbs.

It's simple supply and demand. There are 8,000 people a month moving to Austin. Most are from New York, California, etc. based on the license places I see around me each day. They don't bat an eye at those prices. The locals are getting squeezed, but those who paid $125k for a house back in the 80's are laughing all the way to the bank. Except it is a bank outside of town, because they can't afford the one here any more.

But, yes, if you are willing to live in Hutto, Georgetown, Leander, Buda, or Kyle, you can still get a 2,000 sq. ft. house for $230k. Of course you are going to spend an hour in a traffic jam each way getting to work.

 

[HBK4life]

Austin is not much better than California. There are 900 sq. ft. rat traps selling for $450k in central Austin. People buy them just to tear down. The prices are insane. We wanted to limit the commute and live somewhere with "character," but after trying to decide how four people could squeeze in a 1,400 three bedroom we decided to hit the 'burbs.

It's simple supply and demand. There are 8,000 people a month moving to Austin. Most are from New York, California, etc. based on the license places I see around me each day. They don't bat an eye at those prices. The locals are getting squeezed, but those who paid $125k for a house back in the 80's are laughing all the way to the bank. Except it is a bank outside of town, because they can't afford the one here any more.

But, yes, if you are willing to live in Hutto, Georgetown, Leander, Buda, or Kyle, you can still get a 2,000 sq. ft. house for $230k. Of course you are going to spend an hour in a traffic jam each way getting to work.

Ive got a friend who used to live in Round Rock, think he's in Pfflugerville now? He has said how prices are getting crazy. And the traffic I seen myself. Hated it. But Austin and Lincoln are usually top 3 in country for places to live when you factor in everything.

 

[rrthusker]

Been watching house hunters and flip or flop and my gawd. I've seen 800-900 square foot homes with 1 bathroom for 500 k in California?? Look, I get the whole Cali weather and lifestyle but I would like to start a show to show these people what 500 k will get you in Lincoln, KC, basically any where outside Hawaii or Hamptons. Will get you 5,000 square foot 5 bed-4 baths with a media room. Just learn to deal with a few months of cold weather you weenies. If I spend half a mill on a house its gonna have more than one bathroom and be bigger than my old apartment!! End of rant.

The real estate out here is insane. Glad we bought when we did.

 

[HBK4life]

The real estate out here is insane. Glad we bought when we did.

When did it start getting ridiculously high?

 

[rrthusker]

When did it start getting ridiculously high?

About ten years ago. Our home has appreciated more than we could have ever hoped for. Also homes stay on the
Market just a few weeks when a sale sign goes up.

 

[mothmonsterman]

The real estate out here is insane. Glad we bought when we did.

I used to work with a woman whose daughter married a wealthy guy. Back in the 70s he bought a vacation home in Malibu. He sold it for a little less than two million dollars in the late eighties because he didn't spend much time there. He was visiting the area in the early 2000s and was shocked at what smaller homes were going for, he almost regretted not hanging on to it longer.

 

[rrthusker]

I used to work with a woman whose daughter married a wealthy guy. Back in the 70s he bought a vacation home in Malibu. He sold it for a little less than two million dollars in the late eighties because he didn't spend much time there. He was visiting the area in the early 2000s and was shocked at what smaller homes were going for, he almost regretted not hanging on to it longer.

He should have, Malibu is really big bucks.

 

[HBK4life]

About ten years ago. Our home has appreciated more than we could have ever hoped for. Also homes stay on the
Market just a few weeks when a sale sign goes up.

Yup, I bought in Lincoln 2 years ago and I read home prices have gone up 10 percent in last 2 years. Definitely a sellers market. Houses on market for a day, then poof, gone. Got tired of paying 700 a month to live in a shoebox apartment. And they jacking up rent every year because they can. Too many people, not enough homes.

 

[mwulf]

My rent for a 1 bedroom apt in Santa Clarita (20 miles outside LA) is 1912 a month

 

[HBK4life]

He should have, Malibu is really big bucks.

My grandparents used to live in a mountain home in Breckenridge Co, sold too soon before the yuppies toook over. Only got 300 k, if they waited a few years, probably 800. Oops.

 

[HBK4life]

My rent for a 1 bedroom apt in Santa Clarita (20 miles outside LA) is 1912 a month

Crazy, in Manhattan Ny, I think a loft is 3 k, ridiculous

 

[rrthusker]

My rent for a 1 bedroom apt in Santa Clarita (20 miles outside LA) is 1912 a month

Wow

 

[NU9920]

This too will bust. Consumer debt is higher than it was prior to the last crash in real estate and stocks. Over 60% of the loans / lease of the top 3 most expensive vehicle are sub-prime. It has already hit Colorado hard a track home in Denver Colorado can easily go for over $ 450,000.00 lots f wealth here but unsustainable. Prepare for the next cycle if your old enough you remember 87,92,94,97,2001, 2007, etc.

Not doom and gloom just reality unaffordable lifestyle that will go out to eat and put it on a credit card with no concern of how to pay it off.
nearly 80% of the student loans in default are from students that never completed the degree they borrowed the student loans for. Interesting times.

Good commercial and residential deals will come soon.

 

[9and4]

Boulder: http://www.realtor.com/realestateandhomes-detail/1190-Berea-Dr_Boulder_CO_80305_M18040-25219

$715 K for 2 BD/2BA 1350 sf

 

[rrthusker]

Crazy, in Manhattan Ny, I think a loft is 3 k, ridiculous

I think you are right. One of my clients has a daughter that pays over 3k a month for a 600 sq ft apt there.

 

[HBK4life]

Boulder: http://www.realtor.com/realestateandhomes-detail/1190-Berea-Dr_Boulder_CO_80305_M18040-25219

$715 K for 2 BD/2BA 1350 sf

That house would be 160 in Lincoln. Crazy

 

[9and4]

That house would be 160 in Lincoln. Crazy

In 2.5 years, I've seen $150K in equity increase here in Boulder. By May, I'll probably see another $40K to $50K. Time to leave Hell and cash out.

 

[HBK4life]

In 2.5 years, I've seen $150K in equity increase here in Boulder. By May, I'll probably see another $40K to $50K. Time to leave Hell and cash out.

I lived in Longmont for 2 years, boulder is beautiful, but reason they call it the people's republic of boulder, too many hippies, lol

 

[9and4]

I lived in Longmont for 2 years, boulder is beautiful, but reason they call it the people's republic of boulder, too many hippies, lol

I like the hippies. It's the New Yorkers I can't stand.

 

[B1G RED RULES]

This too will bust. Consumer debt is higher than it was prior to the last crash in real estate and stocks. Over 60% of the loans / lease of the top 3 most expensive vehicle are sub-prime. It has already hit Colorado hard a track home in Denver Colorado can easily go for over $ 450,000.00 lots f wealth here but unsustainable. Prepare for the next cycle if your old enough you remember 87,92,94,97,2001, 2007, etc.

Not doom and gloom just reality unaffordable lifestyle that will go out to eat and put it on a credit card with no concern of how to pay it off.
nearly 80% of the student loans in default are from students that never completed the degree they borrowed the student loans for. Interesting times.

Good commercial and residential deals will come soon.

Keeping powder dry to go in and buy more investment properties.

 

[B1G RED RULES]

I'm sure this isn't 100%, but a majority of massively expensive places to live have liberal fiscal leadership at the city, county, or state level. Of course their policies are designed to "help" the poor. Nothing like massively overpriced housing to help the less fortunate get back on their feet.

 

[PeliniTheCrutch]

Freakin' Obama...

 

[chicolby]

I like the hippies. It's the New Yorkers I can't stand.

What's wrong with New Yorkers?

 

[chicolby]

I'm sure this isn't 100%, but a majority of massively expensive places to live have liberal fiscal leadership at the city, county, or state level. Of course their policies are designed to "help" the poor. Nothing like massively overpriced housing to help the less fortunate get back on their feet.

I'm going to try and be respectful but housing prices have everything to do with population size, income levels and supply/demand not your premise of liberal policies.

These cities happen to have liberal leadership because the people in these cities elect them - so it is correlation but not causation.

Also people in these markets pay what they pay because they earn a lot more based on the economies in those cities. When people talk about what one can buy in Lincoln, they need to take into account that earning power shrinks significantly. Especially when considering many of these jobs are in the tech industry in SF, ad agencies in NYC, entertainment in LA, etc. those people simply can't find work in Nebraska and if they did it would be for pennies on the dollar.

 

[TwinsRRUs]

I would think that this would be one of the reasons that some states push for $15/hr minimum wage.

I bought my current house for $100k a couple years ago. White brick home built in 1974, 2100 sqft main level, 1850 sqft basement, 800 sqft garage, corner lot.

When I lived in North Platte after college (2005) I rented a 1 bdrm house for $195/month. Making 45k right out of college and living there allowed me to save a hell of a lot of money.

Curious what a gallon of milk and the normal groceries cost in some of those places mentioned above and whether the cost ratio (rural Nebraska vs Inner city Cali/NY) applies to food as well.

 

[Rocky Mtn Husker]

In 2.5 years, I've seen $150K in equity increase here in Boulder. By May, I'll probably see another $40K to $50K. Time to leave Hell and cash out.

Parker is a steal compared to Boulder and very, very nice. I'm not so sure there is a bubble in CO though. People still moving here in droves and bringing lots of $. Maybe the weed has something to do with it?

 

[TwinsRRUs]

I'm going to try and be respectful but housing prices have everything to do with population size, income levels and supply/demand not your premise of liberal policies.

These cities happen to have liberal leadership because the people in these cities elect them - so it is correlation but not causation.

Also people in these markets pay what they pay because they earn a lot more based on the economies in those cities. When people talk about what one can buy in Lincoln, they need to take into account that earning power shrinks significantly. Especially when considering many of these jobs are in the tech industry in SF, ad agencies in NYC, entertainment in LA, etc. those people simply can't find work in Nebraska and if they did it would be for pennies on the dollar.

Nice post.

Question about the last paragraph:

What kind of numbers are employed in those work fields?

Even though rural Ameeica doesn't have those types of jobs, I would think they still have many of the same jobs we do here (farming outside the cities, retail workers, insurance agencies, fast food joints, restaurants, car dealerships, bank tellers, chiropractors, hospitals, gas stations/convenience stores, manufacturing plants, etc).

Are those jobs paying big money as well or would they be more along the lines of $9 - $15/hr like in Nebraska?

I would assume those workers would have no choice but to live in suburbs and have long commutes, but I have never been anywhere near a big city, especially not to live in one to see costs or gow people live.

 

[schuele]

Parker is a steal compared to Boulder and very, very nice. I'm not so sure there is a bubble in CO though. People still moving here in droves and bringing lots of $. Maybe the weed has something to do with it?

Yeah Boulder is insanely unaffordable. So are the nice parts of Denver and even a few of its suburbs. But luckily, as you point out, there are still some good places to live in the Denver metro area that are not too pricey. Glad I bought a modest home when I did, and paid it off quickly. Nice to be somewhat insulated from the ups and downs of the housing market.

 

[Husk10]

I work in residential development and we just broke into the So Cal market. It's insane what they pay for homes and then on top of that, association dues. But, there is a buyer market and we're projecting this development to sell quickly.

Additionally, my other territory is DFW and it's trending that way. Several large corporations are leaving CA for TX dues to the tax breaks and incentives (Toyota, Liberty Mutual, Jamba Juice, etc). For example we bought our house 1 year ago and the value has increased about 14% in a year.

But CA is still far and way outrageous. We're not going to open an office out these simply due to the pricing.

 

[chicolby]

Nice post.

Question about the last paragraph:

What kind of numbers are employed in those work fields?

Even though rural Ameeica doesn't have those types of jobs, I would think they still have many of the same jobs we do here (farming outside the cities, retail workers, insurance agencies, fast food joints, restaurants, car dealerships, bank tellers, chiropractors, hospitals, gas stations/convenience stores, manufacturing plants, etc).

Are those jobs paying big money as well or would they be more along the lines of $9 - $15/hr like in Nebraska?

I would assume those workers would have no choice but to live in suburbs and have long commutes, but I have never been anywhere near a big city, especially not to live in one to see costs or gow people live.

Of course they have those same employees but it's the high earners that drive up house costs. And yes it's sad in my opinion that the hourly workers are forced to have Long commutes or live in small places that have people crammed in them to afford to live in these cities.

I used those few industries as examples but across the board people with comparable jobs do earn sizably more living in bigger cities than they would in Nebraska.

The rich are still the rich in Lincoln and they live as such but it's just different numbers.

 

[Rocky Mtn Husker]

I work in residential development and we just broke into the So Cal market. It's insane what they pay for homes and then on top of that, association dues. But, there is a buyer market and we're projecting this development to sell quickly.

Additionally, my other territory is DFW and it's trending that way. Several large corporations are leaving CA for TX dues to the tax breaks and incentives (Toyota, Liberty Mutual, Jamba Juice, etc). For example we bought our house 1 year ago and the value has increased about 14% in a year.

But CA is still far and way outrageous. We're not going to open an office out these simply due to the pricing.

Maybe it's completely peaked in SoCal, but I've been hearing that it's outrageously priced as long as I can remember. Location, location, location. I personally think it's about 10% paradise and 90% awful. Somebody earlier mentioned the problems with CALPERS there too. CO has problems with PERA as well. Have a buddy who just retired at 50 getting $80k/yr. for the rest of his life inflation adjusted!! Present value in the $2-2.5 million range. Not bad for a 40 hour work week for 22 years with the State, but how could that possibly be sunstainable?