patrick.net

^^^^ copium

Major housing issues. What's the group in America most likely to buy a home?

The minorities move back home where it's cheaper and they can live rich in their home country.

mell says

There's hardly any building activity atm.

Can confirm at least in Texas. My high school pal is pretty senior at the nations largest builder and told me a few weeks ago they've all but shut down.

Maga_Chaos_Monkey says

mell says

There's hardly any building activity atm.

Can confirm at least in Texas. My high school pal is pretty senior at the nations largest builder and told me a few weeks ago they've all but shut down.

I'm the freak right now building, but it's custom, not cardboard box shit. The developer of the subdivision is still building. It's been 2 decades with no new construction in town though besides this year. We're 30-40 minutes within range of some big suburbs of Chicago with high paying jobs. So easy commute. No resale homes so we have light demand for people to build.

I see builders tapping the brakes for a year or 2. Apartments and townhome style developments as rentals will continue. Our house is our builders last house before retiring. We're in a weird spot with housing trades. Boomers are done. Millennials don't know how to build. That's why I don't see prices moving much over the next decade. There won't be new inventory outside of rentals.

DOGEWontAmountToShit says

The new normal is that nobody wants to pay 6x income for a 1960s starter home or for a 5 bedroom McMansion Zero Lot for a couple or a guy and his dogs.

AmericanKulak says

The new normal is that nobody wants to pay 6x income for a 1960s starter home or for a 5 bedroom McMansion Zero Lot for a couple or a guy and his dogs.

So where are these people living?

HeadSet says

So where are these people living?

They rent.

DOGEWontAmountToShit says

HeadSet says

So where are these people living?

They rent.

But isn't rent increasing as well?

HeadSet says

But isn't rent increasing as well?

I dunno about other states, but FL rents are collapsing.

It was a modest $100 decline in 2023, 2024 saw big cuts, continuing on until 2025.

Already by Summer 2024, rents were in freefall.
https://www.redfin.com/news/rents-fall-in-florida-austin-june-2024/

https://jaredjones.com/2024/09/19/landlords-panic-as-florida-rental-market-faces-major-decline/

Not only is it Landlords desperate to get somebody to come in and mitigate their 30% rise in HOA, Insurance, Property Taxes, but FL built 100k's of new multifamily units in the past two years - forced to finish by county/state bonding laws to prevent another 2008 when developers walked away from unfinished complexes

Once Trump slams the brakes on the migration wave it's hey hey mama going down.

Blackrock is already selling off in tranches. This site is run by a real estate research app developer:
https://www.youtube.com/watch?v=Wa5r73qp-U
Home Partners of America (Blackstone) taking losses to dump fast last fall North of Tampa.
https://www.youtube.com/watch?v=G2BZbCbGN0g

The smart money is abandoning AirBNB, SFH rental, etc. and did so starting early last year.

NO bailouts for investment properties.

Rents dropping in Texas too but I'm not sure if it's as much as Florida. Probably not.

AmericanKulak says

I dunno about other states, but FL rents are collapsing.

Not around here in coastal Virginia - rents are steadily increasing. House prices are falling, but the fall is from the rapidly increased prices from the last few years.

HeadSet says

Not around here in coastal Virginia - rents are steadily increasing. House prices are falling, but the fall is from the rapidly increased prices from the last few years.

Around here in San Antonio we have a net outflow of residents so our population is decreasing, which is rare here. Over 15K apartments were build recently too mostly sitting empty.

It was difficult to get tenants for one of my rent houses last summer. It took me 4 months, a pretty major remodel, and a huge drop in rents. It put my rent gross back to around where it was in 2017.

I have a couple of young Navy kids living there now that work at one of the NSA buildings here in town which is perfect. Some people bitch and moan about small mom and pop people like me taking up the housing stock but for renters like that we do provide a service.

It's the mega-corps buying up everything that are the assholes. I still rent my self. All 3 of my rent house are equivalent to one house and San Diego and maybe 3/4 in SF bay area.

Maybe I'll sell when I finally buy something to live in but until then it keeps me diversified.

https://wolfstreet.com/2025/01/12/the-most-splendid-housing-bubbles-in-america-dec-2024-in-21-of-the-33-metros-prices-have-now-dropped-below-2022-peaks/

DOGEWontAmountToShit says

https://wolfstreet.com/2025/01/12/the-most-splendid-housing-bubbles-in-america-dec-2024-in-21-of-the-33-metros-prices-have-now-dropped-below-2022-peaks/

Cities are going to eat shit. That was always a given. People don't want to live in them. Didn't predict our town, but we've had 10 houses built in the last 18 month. Nothing was built for 20 years prior. Mind you we only have 800 homes so this isn't earth shaking building, but we're getting city folks moving in from Chicago.

How will the LA fires affect Bay Area house prices?

On the one hand, maybe a lot of the displaced people will move up here, pushing prices up.

On the other hand, maybe a lot of people will just give up on California completely because we could have similar fires up here as well. Not to mention the very high tax rate, the utter incompetence of all the diversity hires, and the surge in crime as the flood of criminal aliens makes California merely an extension of Mexico.

Patrick says

How will the LA fires affect Bay Area house prices?

On the one hand, maybe a lot of the displaced people will move up here, pushing prices up.

I think they move out unless they like surfing. You can move to Reno, Phoenix, Vegas area and spend way less and still be within 4 hours drive or a quick flight. The value was in the land anyway.

DOGEWontAmountToShit says

https://wolfstreet.com/2025/01/12/the-most-splendid-housing-bubbles-in-america-dec-2024-in-21-of-the-33-metros-prices-have-now-dropped-below-2022-peaks/

But Inflation locked in duh high prices!

https://www.resiclubanalytics.com/p/housing-market-where-inventory-is-above-pre-pandemic-housing-inventory-levels

9 states are back above pre-pandemic housing inventory levels—these 5 states are getting close

https://finance.yahoo.com/news/ally-end-mortgage-originations-cut-161513045.html

Ally to End Mortgage Originations, Cut Jobs Across Company

zzyzzx says

https://www.resiclubanalytics.com/p/housing-market-where-inventory-is-above-pre-pandemic-housing-inventory-levels

9 states are back above pre-pandemic housing inventory levels—these 5 states are getting close

Some of you cats need to listen to me. This has been obvious for years. Popular spots have been overbuilt around 2018 or so. It's not interest rates. The inventory went up.

Patrick says

The real problem is that DEW effected matter do not quench very quickly and undermine ground to a good depth under the former structures. They create time related deterioration effects that are unpredictable. Might be OK for a home, but not for large, heavy structures for some time afterwards.

The reflecting pool 'memorials' at the previous WTC in NYC aren't there because they wanted a memorial on the valuable real estate. Clean nuke under the foundations as well as non-quenching DEWs with ongoing molecular effects made the footprints unbuildable. Those plots would continue to disintegrate and undermine any large structure built on them.