by tovarichpeter ➕follow (6) 💰tip ignore
Comments 1 - 33 of 33 Search these comments
Hummm... less mortgage applications means less buyers, so less competition to buy.
Hummm... less mortgage applications means less buyers, so less competition to buy.
Therefore, I thought how people would deal with the situation is to have mult-generations in one house.
America also has a nationwide shortage of construction workers. According to the Harvard report, building firms have 200,000 job openings, the highest number in a decade. And yet, despite persistent labor shortages, construction worker wages are rising slower than the rest of the private sector.
Madden said that all these costs, taken together, mean developers can only make a profit on high-end apartments and McMansions. He estimated that in Seattle, developers would struggle to break even on apartments renting for less than $1,900 per month for a one-bedroom unit. In New York or Boston, he said, the figure is probably closer to $3,000.
NIMBY is a major cause
tovarichpeter saysAmerica also has a nationwide shortage of construction workers. According to the Harvard report, building firms have 200,000 job openings, the highest number in a decade. And yet, despite persistent labor shortages, construction worker wages are rising slower than the rest of the private sector.
Madden said that all these costs, taken together, mean developers can only make a profit on high-end apartments and McMansions. He estimated that in Seattle, developers would struggle to break even on apartments renting for less than $1,900 per month for a one-bedroom unit. In New York or Boston, he said, the figure is probably closer to $3,000.
So let me get this straight:
- they have a "shortage of construction workers",
- the price of houses they sell grows faster than inflation (for decades),
- and the wages they pay are climbing slower than the rest of the private sector...
- But they can't...
Well it needs to speed up the implosion. I would like to buy back in soon.
So let me get this straight:
- they have a "shortage of construction workers",
- the price of houses they sell grows faster than inflation (for decades),
- and the wages they pay are climbing slower than the rest of the private sector...
- But they can't...
Go on..... what does your Hummmmm imply?
steverbeaver sayslolWell it needs to speed up the implosion. I would like to buy back in soon.
Already happened in 2008. Should have caught it then. The next one at that magnitude could happen after 90 years. Good luck.
The trends seems to be shelter becoming a luxury. It may seem impossible, but could the West end up here?
https://www.theguardian.com/cities/gallery/2017/jun/07/boxed-life-inside-hong-kong-coffin-cubicles-cage-homes-in-pictures
Go on..... what does your Hummmmm imply?
It implies more money goes to developers but somehow they can't pay their employees.
And they are working mostly on "high margin" high end units.
So where is the money going? Just material costs? Framing lumber went through the figurative roof recently, but were flat for years to 2016.
So just land prices? They set the price. Why, in the current market, can't they get a price that allows them to pay their employees and still make their margins? It's like they don't want to build.
Or there is just no land available to develop? In that case why do they have a shortage of workers?
is it really a sign that "shelter has become a luxury" in general?
I don't have answers to most of your questions. I do know:
1. There seemed to be no shortage of land during the bubble when twice as many homes were being built. Why is there a shortage now?
2. Construction worker shortage has been going on for 6 years now. There were plenty of opportunities to hire and train construction workers when unemployment was a lot higher. Now it's gonna get worse.
------
I don't think home builders want to build too many homes, which is why they stick with the more profitable high end homes. But why don't they want to build like crazy to meet the crazy demand? I would think they want to make lots of money. It would be interesting to know the real reason they don't build like crazy instead of the excuses we keep getting.
It used to be you didn't need to take a 40 minute BART ride to get to work and have affordable accommodations. And what if the people that cram into the city center decide to, en mass, move outward? What do you think will happen to price to space ratio there? As I opened with, look at the trend.
Capitalism states when the price of something goes up due to a higher demand, suppliers will rush in to profit until a new equilibrium is set. Why is capitalism failing in this instance?
Strategist saysCapitalism states when the price of something goes up due to a higher demand, suppliers will rush in to profit until a new equilibrium is set. Why is capitalism failing in this instance?
As much as I hate to say it, "they're not building more land". Population is growing rapidly while habitable space is fairly fixed. Not really an issue for centuries but I think we're finally getting there, when the petri dish is finally getting cramped with humans. And unlike for bacteria, wealth can buy you more space in the dish. Which brings me back to my opener that shelter is a luxury, with the caveat that some pig are more equal than others.
There is a lot of room in the sky, you don't even need more land.
As much as I hate to say it, "they're not building more land". Population is growing rapidly while habitable space is fairly fixed. Not really an issue for centuries but I think we're finally getting there, when the petri dish is finally getting cramped with humans. And unlike for bacteria, wealth can buy you more space in the dish. Which brings me back to my opener that shelter is a luxury, with the caveat that some pig are more equal than others.
Capitalism states when the price of something goes up due to a higher demand, suppliers will rush in to profit until a new equilibrium is set. Why is capitalism failing in this instance?
Are the home builders scared to death after the great recession? If so, their confidence would not be at record highs.
Something is holding them back, and no one knows the reason. The real reason.
Plenty of people have written about the real reason there isn't more building. . Right now developed lots are in very short supply. With nimby regulations and lack of open land where the housing is in the most demand that isn't gong to change soon.
I'm not a fan of the turks but thought this was interesting:
patrick.net
An Antidote to Corporate Media
1,189,777 comments by 13,848 users - PeopleUnited online now