patrick.net

Don't they already do that via government subsidies to not-produce, and FDA restrictions on all sorts of food and drugs?

"which is why I got on my soapbox recently on MSNBC to urge people to rent their homes, and start viewing housing as a consumption good, like food."

ugh.

I can't see the future but if wages go up, rents will go up.

Whether wages will go up is the interesting question, but I don't see why not, even though what happened 1970-2000 isn't necessarily going to happen anytime soon.

Buying your own house does have the salutary benefit of allowing one to step off the rental treadmill, of paying the LL's mortgage for him.

Gen Y is beginning to turn 30, and they're going to need housing. I don't think we're going to be over-supplied in housing anytime soon for that matter.

Bellingham Bill says

I don't think we're going to be over-supplied in housing anytime soon for that
matter.

On the one hand I agree. And then I look in my local neighborhood where there are not that many homes for sale and I see four homes which (it appears) the occupants/owners were evicted and there they sit, no for sale signs, pretty much NOTHING. In one case it has been three years (although whoever is holding paper on it has contracted to have the yard mowed and the house looked at to ensure no break ins). In the other three cases, only one has been listed at all, the other two range from 3 to 6 months of no occupants. They are pretty nice homes, priced right, they should move; just don't understand it.

Wages are not going anywhere at all anytime soon at all. Welcome to the new normal, peons.

The rental treadmill is no worse (and probably much better) than the DEBT-treadmill. But his real point is that people should think of houses for what they are (goods) and not what people want them to be (investments).

Bellingham Bill says

Gen Y is beginning to turn 30, and they're going to need housing.

Gen Y will be living in their parent's basements for a long time.

I've never seen a poorer generation in a long time, sans those with a silver spoon.

Rin says

Bellingham Bill says

Gen Y is beginning to turn 30, and they're going to need housing.

Gen Y will be living in their parent's basements for a long time.

I've never seen a poorer generation in a long time, sans those with a silver spoon.

Which may lead to them inheriting the house once boomer parents die so essentially they will have very low lifetime housing costs by living rent free until that happens. Now if they will not be able to handle property taxes/maintenance after the fact then they truly deserve foreclosure like in the movie "House of sand and fog."

dublin hillz says

Now if they will not be able to handle property taxes/maintenance after the fact then they truly deserve foreclosure like in the movie "House of sand and fog."

After some 30 years, some of these newer houses will need up to $50K worth of renovation. For a bunch of millennial bozos, who'd never been able to get a real job, it's highly unlikely that they'll be able to maintain the place w/o subletting some of the rooms.

Since today, there are millions of boomerang kids, that could be a demographic effect, in itself. Basically, we're talking about a massive airbnb phenomena.

I own a bunch of food in my fridge. I'm rich I tell ya.... rich!!!

Rin says

For a bunch of millennial bozos, who'd never been able to get a real job, it's highly unlikely that they'll be able to maintain the place w/o subletting some of the rooms.

Lazy Young-ins!!
-circa 1929, 1999, 2009, 2014...

dublin hillz says

Which may lead to them inheriting the house once boomer parents die

That may be a long time to wait in the basement.
Look at Prince Charles.

HomelessJoe says

But his real point is that people should think of houses for what they are (goods)

thing is, real estate is both the depreciating fixed improvement and the bundle of land use rights for the lot.

And thanks to inflation even the "depreciating" sticks and bricks can be worth more now than at time of construction, even with minimal maintenance.

A total crap modular home costs $40,000, easily. My mom's place wasn't much more than that when just-built new in the 1970s.

https://research.stlouisfed.org/fred2/series/CUUR0000SEHA

brutal

I hear homes in TX have rocketed up the past year so. is this true?

Rin says

Gen Y will be living in their parent's basements for a long time.

My husband was Skyping with a fellow musician from NYC and saw the guy's mom walk by and heard her tell him to stop playing guitar. This guy is 43!!!! How pathetic is that?! Just so sad that a man can't even afford rent in the city because it's so dang high. My own older brother works full time and is trying to get a small biz off the ground--he rents my parent's cottage for 1/5 market value.

Bellingham Bill says

And thanks to inflation even the "depreciating" sticks and bricks can be worth more now than at time of construction, even with minimal maintenance.

Thanks to inflation?
Do you really expect inflation to preserve value?

Bellingham Bill says

I can't see the future but if wages go up

Wow, they better go up like a rocket.

mmmarvel says

They are pretty nice homes, priced right, they should move; just don't understand it.

Or you do understand it because you wrote, "Priced right."

rufita11 says

Rin says

Gen Y will be living in their parent's basements for a long time.

My husband was Skyping with a fellow musician from NYC and saw the guy's mom walk by and heard her tell him to stop playing guitar. This guy is 43!!!! How pathetic is that?! Just so sad that a man can't even afford rent in the city because it's so dang high. My own older brother works full time and is trying to get a small biz off the ground--he rents my parent's cottage for 1/5 market value.

It really is a mess what we have in a housing market today.