/biz/ - Business & Finance

>>22241040
Sounds like you've pretty much got it worked out. Low interest and QE.

Heavy-handed regulations for zoning laws in every major city make it next to impossible to build enough to keep up with demand. Bringing up this issue in a city hall meeting just gets received with bored rolls of the eyes from the council members like you're some kind of tinfoil UFO gadfly. This is because many legislators responsible hold real estate in their portfolio and directly made it expensive for housing, slowly over time like boiling frogs.

>>22241143
South Korea literally spams these ugly commieblocks with no fucks given about NIMBYs or basic urban planning principles or aesthetic taste but they still have expensive housing I think. The problem lies somewhere else I believe. Neoliberals have been wrong time and time again

>>22241197
Jesus christ that is grim

Cities artificially reduced housing demand. We are seeing an insane city exodus right now.

I work at a faang tech company in the bay and my coworkers (pulling 200k+ TC, now WFH) are buying houses in Idaho, Colorado, Utah, rural WA, rural OR, and very sleepy California towns. They don't care about paying 2x local prices because that is still 20-50% bay area prices.

There's even a slack channel where people post their recent house purchases, and they are estatic with how cheap everything is.

The tech jobs are going to lower salaries if it's WFH, or offshore to India/Russia, or rural house prices in comfy states are going to get severely BTFO.

>>22241260
Do you think that will lead to cities getting cheaper? I think there's still plenty of demand from other parts of the economy to keep things going up. Here in Canada everywhere is increasing. You have the WFH people moving away and also big city people cashing out and buying several rentals in a cheaper area. So prices are skyrocketing everywhere and there's nowhere for poors like me to escape to

>>22241197
Because no one wants to live on Megacity 1?

>>22241383
What? Their housing is still expensive so there is demand

>>22241040
Of course cope doesn't work,even here in Balkans prices of real estates is very out of proportion to people salaries and life. Like "move somewhere else" was always a fuckin meme, move where? To fuckin india or what?

>>22241040
chinks

>>22241040
We let foreign investors start buying properties. Theres a huge problem with money laundering through north American real estate, and most of these housing whales would rather sit on empty properties listed for 10x more than they're actually worth than fill them. This drives down supply while demand obviously stays the same (everyone needs a place to live) which increases the price for everyone else.

>>22241040
Theyre getting desp. like car manufacturers

>>22241414
it's still expensive because korea subsidizes housing which just makes the prices go up even more and make the housing too expensive for the ones who could and could not easily afford it before

>>22241260
wait 2-3 years when they're bored out of their minds and want to move back and have to sell low to get out quick.

>>22241327
Housing is a huge portion of the Canadian economy as well as boomer retirement wealth. Imagine what would happen if they let housing fall to fair value at this point.

>>22241260
this, prices doubled in the last 2 months. Tech fags will get here and realize they don't want to actually be here and everybody hates them in a few months though

>>22241143

Fuck off nigger. Millions of houses sit empty. Waiting for the segment of society chosen to profit (realtors working with banks) to release. If is is a slightly good deal they jump in it with their free or .25 money.

>>22241040
I think housing is the biggest crisis we have right now.. I would love nothing more for the market to crash hard as fuck. Anyone that bought before 2014 is in, everyone else is fucked out of home ownership without a decent correction. I think it prices go up another 25-30% then you will have priced out almost everyone from even the cheapest dump hole.

>>22241635
Millions of houses sit empty because of high housing costs and taxes.

>>22241040
The other thing that pisses me off to no end.. housing regulation has essentially made ANY new building method illegal. If say tomorrow somebody invents a revolutionary way to build a house 50% cheaper that current methods, it would be decades before it would be allowed in the building code.

Then you got asshole city councils passing laws like $20k impact fees for any new dwelling construction.. the market is getting raped by a million assholes with their hands in the pot.

>>22241197
that's because "renting" is the biggest scam in the universe inside the country (google Jeonsae).
No one can afford to outright buy an apartment in those commieblocks, banks only allow regular people to get a RENT mortgage; sk was over after the IMF crisis in 98, much like jap in 90.
>let's put it this way, if I had to choose between living in London or Seoul(ess), I'd rather kms

>>22241711
feudalism 2.0

>>22241809
>banks only allow regular people to get a RENT mortgage;
isn't that how ir works everywhere else?
which bank is gonna give you a loan if you are a min wage worker?

>>22241862
It's about wage to payment ratio not the wage itself. Once upon a time you could buy a house in a city stocking shelves

>>22241809
holy fuck SK is a shithole. No wonder lots of Koreans move to America

>>22241040
Price of something is always decided by supply and demand. In 99% of overpriced housing cases that is because either

>the government subsidizes loans for housing
so every peasant wagie wants a mcmansion he can't realistically afford
(this was the main cause of the 2008 crisis)
>brutal regulation blocking investors/constructors from making new housing

>>22241711
Yes regulation is brutal in the housing/construction industry.

>>22241885
>Once upon a time you could buy a house in a city stocking shelves
you could maybe buy a cuck one room bedroom, but certainly not a house

>>22241588
>>22241556
I think so too. I think it is temporary. I don't see my coworkers being okay living in a Boise suburb for 20 years.

>>22241327
Not sure desu, just giving a field report. SF landlords are sweating though. My PoS chinese landlord has been pushing me to sign a new lease and I told him I'll go month to month, if he wants to make me sign a new lease I'll go live with my parents instead. He gave in

>>22241040
I have no idea anon. I live in a shithole third world country which is badly impacted by Covid and somehow the prices for real estate is at an ATH.
This is peak clown world.

>>22242030
Nope, a house. Know some house millionaires like that in Vancouver

>>22241040
Fiat inflation; it takes more pieces of paper to get the same actual goods.

>>22241040
chinks

>>22242030
you have no idea how bad things have gotten

>>22241197

>>22241040
>Someone explain this madness to me.
cities like NYC and SF are getting filled with riots and upperclass yuppies are buying houses in these cheaper places. they will default on their condos.

>>22241040
Because pricing people who work out of a home to live in is how commies achieve communism.

>>22241040
Rich chinks are adding a shit ton of buy pressure right now and pricing out the white working man. Yet another example of globalism screwing over the people that made such a thing possible in the first place. Unsustainable!

>>22241503
>We let foreign investors start buying properties.
>>22242182
>chinks
This is the right answer, at least a significant part of it.
I just bought a house, and in my neighborhood (middle class suburbania) most are owned but there's a couple rented homes..
Guess whose names are on the non-homestead properties? Literally all of them are owned by people named "Xi Ming" and "Mai Xing Tao" and shit like that. Do you think they're locals renting their second home?
No it's fucking "flippers" buying fixxer-upper homes, fixing them up as cheaply as possible, then selling them to foreign investors to rent out.
It's a cash grab. It's no longer a culture of buying a house to live in from the former owner, one on one, it's now just a business full of foreign interest and people trying to maximize profit.

>make too much money to apply for my state's affordable housing program
>make too little to afford a house
WHAT THE FUCK AAAH

>>22241040
most straightforward investment. no matter how old you are, no matter what your iq is, real estate seems like a sound thing to put your wealth into.
yes it will burst soon like none other.

>>22241040
Where are you “hearing of bidding wars” on dilapidated homes in the middle of corn fields? That isn’t happening in the US.

You aren’t paying for the home, you’re paying for rights to lease the land. So the materials and labor are an insignificant factor in the overall price. The population and the money supply are both growing.

>>22241040
most straightforward investment for the low iq and the unexperienced. who always make up the majority of investors. yes it will burst like none other.

>>22241040
Are you living in your basement? Endless QE and zero interest rates have caused this. You're supposed to buy into boomer's bags now for maximum price. The whole scam is done on pretext to save the economy. However it's a scam on younger people taking their chancento rightfully buy into a consolidated market. Letting no consolidation happen just postpones the problems to younger generations in the form of debts.

>>22241572
This is a good point, and it’s the same for much of the US too. The government will no longer allow the price of real estate to drop as it would be game over for the entire economy. They will do everything in their power to ensure high prices even if it fucks over younger generations who will forever be renting now.

>>22241040
Irregular wealth distribution.
The rich seek ways to be richer. Buying houses and land and renting it out is very affordable long term

>>22241143

Houston, the fourth largest city in America, has literally zero zoning laws. And RE has continued to climb in price there despite oil and gas getting savagely assraped long dick style for six years in a row now. Basically you have retard disease and should KYS

>>22241197
>HELLCAM
we're all living in america

>>22241040
Because you have no choice goyim. Pay up or be homeless.

>>22241040
Housing isn't becoming more expensive. You're becoming poorer.

>>22242961
That's because a shit ton of people are moving here from other states. So many fucking California plates around here lately. Even in the school pickup line, which is hilarious because it means they moved here VERY recently, since it takes 30 days to get local plates. So they moved here, enrolled their kid in the school, and haven't even been able to get new plates yet.

>>22241040
Housing is a bubble man. There is a serious reckoning coming for landlords. These housing prices will drop by atleast 50% and cause another crisis worse than 2008