Just to add to this, a recession is coming soon. We have propped our economy on stimulus packages instead of sustainable growth. The next 3-6 years we are in for another one. It will be the housing bust all over again.
OT-California home prices...
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Just to add to this, a recession is coming soon. We have propped our economy on stimulus packages instead of sustainable growth. The next 3-6 years we are in for another one. It will be the housing bust all over again.
Son went to school in Pasadena and after graduation got a good job and lived in the LA/OC area. Not only was the rent ridiculous so was the apt. rental application! Fresh out of college without much credit history we had to co-sign and I've never seen such an application in my life. Probably 20+ pages for a RENTAL app! I actually called the apt manager to confirm what they needed. I told her, truthfully, that we've bought/sold houses with less paper work. 5 yrs later son gets dream job and moves up to the Bay area and we discover housing is even worse in the Bay area. We're fortunate that he's able to live with his grandfather while he saves enough to try to buy something.
Spent some time in Porter hospital in Denver last week and I asked almost every hospital employee I came into contact with where they lived and how long of a drive they have to work. To a man, they all lived (in perfect traffic conditions) 35min to an hour away from the hospital because of home prices in that area. If traffic was bad, or an accident, it jumped to an hour. They all said the area around Porter was unaffordable. Fixer uppers that weren't that big with one car garages sell for $350K. Yikes.
Food prices are altered a bit, but not to the extent of housing (rent and purchase.)
You come from the financial service background right? I'd have a couple of questions from your comments above. Could you PM at djourada@yahoo.com
TIA
Weed, lower prices on housing than California has a lot to do with it. Only problem is, Parker is growing way too fast now. DTC and Inverness are big with tech companies, but there are already rumblings of a slowdown. Don't know if that will really happen, but it wouldn't surprise me. Never thought my 1775sf home that we bought back in 1985 would be worth near $400k, but it's about there. Bought a place northwest of Phoenix in Surprise back in 2011, moving there in a few years, paid less than $145k for it in a gated neighborhood.
Not many last names like that one...don't happen to be related to Stephanie from Grand Island, do you?
Do you live in the Denver area by chance? I saw your post last week about offering to bring me something regarding a post I had made...thank you for the offer BTW.
I'm not so sure Denver will have a true "Housing Bust". been doing home loans out here for 20 years. The last one wasn't due to anything other than the Subprime Market imploding on the Options Arms and 2/28s. Prices leveled out and people couldn't get out of them.
Sad part is...about 70% of those could have been avoided had borrowers went to an FHA approved Lender. Could still do the -0- down BUT they could also streamline without concern to existing value to lower a payment.
Licensing requirements have eliminated a large number of the bad guys but some still exist. Prices only dropped due to a flood of foreclosures. The Front Range is, and will remain, an extremely attractive place to move to.
I have no concern of a crash out here. Will prices cap out? Sure...and it's getting close. Those are leveling out now due to the massive # of new builds going up and the ones in planning. People will no longer have to over pay for a 100 yr old house.
Thankfully the southwest side is walled up against c-470 and the Ken Caryl valley with very little room for growth up to I-70. Hope it stays that way, although the Solterra buildup by Green Mountain is making a mess of things, and the retail/commercial land for sale by Bandimere is troubling to see.
I was more or less saying that a recession within the next 5-6 years is inevitable (probably sooner) and a lot of people live beyond their means, so the housing market will take another hit.
Trump also prodding China could also pour some gas on that fire if it doesn't play out the way he hopes.
My guess is that this is due to the overly litigiousness of CA. It's an incredibly regulated state.
I'm guessing we see a lot of continued inflation over the next few years. Aside from Tariffs and Tax Incentives, the only way things can start to balance out, is if if the value of the dollar continues to fall dramatically.
Those people with big gains on their homes haven't necessarily made a profit as much as they have maintained their purchasing power of the devalued dollar.
Those people with big gains on their homes haven't necessarily made a profit as much as they have maintained their purchasing power of the devalued dollar.
Why are so many large cities in Texas affordable - except proudly liberal Austin? Check out how many high income businesses have relocated to Dallas, yet their housing is in line with national inflation. Maybe this is an anomaly.
https://www.google.com/amp/www.forb...using-more-expensive-than-other-texas-cities/
I'll tell you right now, I'm getting real tired of all JFK's ideas and regulations. I can take only so much of this guy's LIBERAL crap!
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I actually want the next Jimmy Carter elected in about 10 years. I'm pretty flush with cash and could really use 18% CDs against my 4% fixed outflow. Arbitrage at its best.
And this LBJ joker has another thing coming if he thinks I'm paying his new interest rates! I'll live in a split-level my whole life with my wife and two kids if that's what it takes to send a message!
It's Bohemian and I'm finding it's more common that I even thought. A few here in Omaha that I have no known relation with, but I'm assuming I have some kind of distant relation with.. I guess there's a few from the town of Prague and I think my great-grandfather (or great-great) came from there. I grew up just west of Kearney and there's a handful of us there.
To answer your question, I don't know if I'm related to the Stephanie you're talking about. Possibly, but I wouldn't know how.
It's a really big stretch if anyone thinks the impact of local government officials have an impact on housing prices. It's about city size (where can you grow), which impacts the amount of housing available, added to the income levels of people in a particular market. Houston and Dallas are physically HUGE cities. There is ample space to build new properties and still be in the city. New York City, on the other hand is very small so there is limited potential and land value is extremely high. This isn't about taxes. Yes, tax rates can have a moderate impact, but nothing to the level of a 600 sq ft. apartment in Manhattan going for a million dollars. That is all about a desire to live in the greatest city in the world, combined with high income potential and limited space.
But I guess "TheLiberalHunter" is a chief economist and should be a trusted media source, because your gut tells you so.
Chicago is also famously "liberal" yet housing hasn't increased like these other "liberal" cities you mention. God, I hate when people go out of their way to bring politics into any and every conversation possible. Get a life.
If you can't figure out how Arnold Schwarzenegger and Harry Truman conspired to jack up these home prices, then I just don't know what else to say.
I agree but the employers of those cities do not have to stay especially when other cities offer incredible move to our state tax, building, and other incentives. There will always be a differential based on income ability, area profile, opportunities and other issues. The problem will be creating a generation and economy that can sustain it.
On the flip side, talent is the real competition in today's world and companies locate to bigger cities because there's simply more talent there. It's not simply about "oh, we're going to up and move to Des Moines because it's cheaper there" - they have to compete to find the best talent and many times that is why those companies are in the bigger cities in the first place. I'm not saying talent doesn't exist in smaller cities, of course it does, just not the massive amounts that allow a company to deal with growth spurts and turnover.
The Midwest is largely perceived among the top talent as "not the place to be". Google has no trouble filling high powered positions in Mountain View. There are a few positions in Council Bluffs that would be very desirable for anyone looking to get into Google and then moving around, but they've been open most of this year with no qualified candidates. (Interesting question, why wouldn't a top student at Carnegie Mellon then (or experienced professional), not just live in the Midwest a while to take that job?)
My brothers and best friend from high school are doing rather well for themselves working at places like Amazon on the coasts. In their opinion, you can make a nice little career for yourself in the Midwest and certainly have a nice house, but if you want the truly challenging leading edge work in the tech sector, you generally have to go out to the Coasts where these big companies are keeping the core of their talent.
Most of the really smart kids I ever went to high school with, have left the Midwest to take high paying programming jobs elsewhere, be it with Facebook or Google whoever even though they could have a decent wage at someplace like Hudl or LinkedIn here in Nebraska.
Some of them have found homes in places like Denver though, with Lockheed Martin and such. My middle brother just bough a 6 or 700 thousand dollar condo in downtown Seattle, and it won't even be built for a couple years.
My brothers and best friend from high school are doing rather well for themselves working at places like Amazon on the coasts. In their opinion, you can make a nice little career for yourself in the Midwest and certainly have a nice house, but if you want the truly challenging leading edge work in the tech sector, you generally have to go out to the Coasts where these big companies are keeping the core of their talent.
Most of the really smart kids I ever went to high school with, have left the Midwest to take high paying programming jobs elsewhere, be it with Facebook or Google whoever even though they could have a decent wage at someplace like Hudl or LinkedIn here in Nebraska.
Some of them have found homes in places like Denver though, with Lockheed Martin and such. My middle brother just bough a 6 or 700 thousand dollar condo in downtown Seattle, and it won't even be built for a couple years.
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When looking at an issue like this, it's best to consult the academic research. John Quigley and Steven Raphael, urban policy economists at UC Berkeley wrote a paper addressing the effects of regulation on home prices in California. Their conclusion was that, indeed, land use regulations and environmental regulations played a significant role in driving prices up. While one is free to dispute their analysis, I don't think it is wise to simply dismiss the idea as right wing propaganda. So, to whoever it was upthread who asked whether someone was an economist, this is the conclusion of two real economists.
While you arent wrong that the demand will help drive prices up....
Local governments can absolutely affect inflation and the cost of building homes. New home costs affect the housing market as a whole.
The cost of living is atrocious in these cities, it isnt just housing.
Their policies can and do have a direct effect on the cost of living and rental/home prices.
