Rich people upset upset at supply and demand: more at 11.
A Growing Problem in Real Estate: Too Many Too Big Houses
101–110 of 440 posts
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#102Earlier quoted context omitted.
>They break down almost completely for large-scale finance, real estate, medicine, and other sectors of education. You just rattled off a list of sectors where the free market is the least free (though in the case of finance I think they more than earned it). Of the four things you mentioned I would deregulate two, regulate the crap out of one and get the federal government out of the business of backing loans on ano…
hmmm you elsewhere, on a topic about the harrowing conditions of FB moderators, claim that "there's a lot of variance between individuals ... I'm not the kind of person that's particularly bothered by graphic violence. My opinion of humanity is dark enough to accommodate it" https://news.ycombinator.com/item?id=20223267 maybe what you consider an ideal world or even positive outcomes or even onerous regulations are n…
>maybe what you consider an ideal world or even positive outcomes or even onerous regulations are not what others have in mind, what with your "dark views of humanity" and all?
Many people (dare I say the overwhelming majority) on HN agrees that real estate needs a heck of a lot less regulation so supply can do better meeting demand and costs can drop.
We may argue about the minutia but pretty much everyone on HN also agrees that medical (in the US) is nowhere near a free market and substantial de-regulation (so the "race to the bottom" can control costs) and/or (but probably "and") a government option (to provide a cost and quality controlled baseline of care) could/would improve the situation.
"Ideal" or not a heck of a lot of people believe that deregulation (within reason) of some/all of the things you listed as free market failures would result in a large improvement from the status quo.
>hmmm you elsewhere, on a topic about the harrowing conditions of FB moderators, claim that "there's a lot of variance between individuals ... I'm not the kind of person that's particularly bothered by graphic violence. My opinion of humanity is dark enough to accommodate it"
How is my opinion of a particular workplace at all relevant to a macroeconomic discussion?
If you think you can "win" an argument by saying "hurr durr, this guy I'm arguing with has opinions other people don't like" then you are sorely wrong. That is how Reddit works but thankfully HN has still not stopped that low and FYI the comment below the one you linked where I expanded on and clarified my point is highly up-voted. ;)
>cause it sounds to me like you deeply believe in naturalistic hierarchies
I'm not sure I'd say that. It greatly depends on the issue but regardless, what is wrong with that?
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#103Earlier quoted context omitted.
> If a couple make a loss of $1m selling a house, then they may need to liquidate $1m of savings to cover the loss This doesn't make sense? Firstly, the point at which the capital was withdrawn from savings was the time the house was built - savings turned into a physical capital asset. That house has lost value, but that doesn't affect liquidity. Secondly, there's a global capital glut to start with - that's why int…
The couple sells the house and then wants to do something else with the money they get back. Maybe they buy another house or give money to their children or both. They still want to do those things, but they have $1m less from selling the property than they expected, so they liquidate $1m in savings which they wouldn't have otherwise needed to do. Alternatively they spend $1m less, or invest $1m less, which is $1m le…
That wealth wasn't doing anything useful. It was just a number on a piece of paper. Sure, they had borrowed against it but their cavernous house isn't capital in the same way a hammer is. They can't tear of a piece of house and barter it for food, for example. There's no utility in their house for anyone but them. I hope that extra million at least made it into the pockets of some of the homebuilders.
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#104One of the trends that I can only hope continues is getting rid of this idea that home ownership (especially single family home ownership) is the American dream. I live in and own a detached single family home (was a compromise with my spouse) and to be honest, I hate it. I hate having to take care of the yard, to deal with unreliable tradespeople when things break, to deal with the huge expense of minor home repairs…
I also hate maintaining a detached single family home with a yard. I also hate being responsible for the fixes. But that situation is still far better than renting. When we rented, we were subjected to eviction at any time, for nearly any reason, for basically no notice (60 days, which in the US is effectively zero notice). Your subjected to every whim the crazy wildly-irrational housing market throws at you (we've h…
> we've had 12% yearly rental increases for a decade straight now, despite living in bumblefudge-nowhere Midwest
Quick math for the rest of you out there: That means they paid 1000 in 2009 and now pay ~3500 in 2019.
Also, yes, I feel you there. Our rental agreement states a mandatory 10% increase if you rent from year to year. I've no idea why the company is this stupid though. The rents around us are falling or staying steady these days. So we just move to the block over every year and the old place stays empty for 3 months before then being rented out for the same or less than we paid. I'm sure there is some tax thing involved here that makes it so they don't have to care all that much.
Also, yeah, we don't have a lot, and we can just move houses in about a weekend in my 4-door.
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#105One of the trends that I can only hope continues is getting rid of this idea that home ownership (especially single family home ownership) is the American dream. I live in and own a detached single family home (was a compromise with my spouse) and to be honest, I hate it. I hate having to take care of the yard, to deal with unreliable tradespeople when things break, to deal with the huge expense of minor home repairs…
I'm right there beside you - I'm coming on two years of home ownership, and I'm not terribly enjoying it. I love the neighbourhood, but I just don't think I'm cut out for home ownership. I've had more problems in 2 years of home ownership than I had in a decade of renting. It's cost a ton more money. Is it an investment? Possibly, but I've sunk a fair bit into it as well. I now wake up on Saturday mornings with a list of things that I "really need to get to". It's been terrible for my mental health, and I don't know if my bank account will ever reflect the extra mental strain.
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#106This article claims that these homes are going because buyer preferences have shifted towards smaller homes in walkable areas. I don't disagree with this, but I'm surprised the article didn't factor in the cost of these homes. These homes are priced in the millions and are generally not in areas known for high salaries. Coming up with that much money is out of reach for most members of younger generations. Some peopl…
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Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#107This article claims that these homes are going because buyer preferences have shifted towards smaller homes in walkable areas. I don't disagree with this, but I'm surprised the article didn't factor in the cost of these homes. These homes are priced in the millions and are generally not in areas known for high salaries. Coming up with that much money is out of reach for most members of younger generations. Some peopl…
What's also interesting is the article claims that the Mediterranean look is out of style -- which I totally agree with -- but that house is decidedly not Mediterranean. It's more of a Tutor style, which is an trendy in high-end homes right now.
So it's absolutely an issue of price and lack of salaries in the middle of nowhere.
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#108One of the trends that I can only hope continues is getting rid of this idea that home ownership (especially single family home ownership) is the American dream. I live in and own a detached single family home (was a compromise with my spouse) and to be honest, I hate it. I hate having to take care of the yard, to deal with unreliable tradespeople when things break, to deal with the huge expense of minor home repairs…
I also hate maintaining a detached single family home with a yard. I also hate being responsible for the fixes. But that situation is still far better than renting. When we rented, we were subjected to eviction at any time, for nearly any reason, for basically no notice (60 days, which in the US is effectively zero notice). Your subjected to every whim the crazy wildly-irrational housing market throws at you (we've h…
The thing I've noticed is that in my area all the modest neighborhoods (2 bed, 1 bath, sub $200k) are being bought up by landlords. This leads to a neighborhood of renters, which is a lot different than a neighborhood of owners. The Havers can buy a lot more houses than the Have-Nots and I'm left wondering what the price of single family homes would be if renting them was illegal and they were all placed on the market.
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#109They're too expensive for buyers which means they're not being sold for the going rate. If you divide the price by 5 then I'm sure people will come. Maybe the people are underwater for their mortgage.
But mortgage outstanding != house selling price.
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#110One of the trends that I can only hope continues is getting rid of this idea that home ownership (especially single family home ownership) is the American dream. I live in and own a detached single family home (was a compromise with my spouse) and to be honest, I hate it. I hate having to take care of the yard, to deal with unreliable tradespeople when things break, to deal with the huge expense of minor home repairs…
I'm right there beside you - I'm coming on two years of home ownership, and I'm not terribly enjoying it. I love the neighbourhood, but I just don't think I'm cut out for home ownership. I've had more problems in 2 years of home ownership than I had in a decade of renting. It's cost a ton more money. Is it an investment? Possibly, but I've sunk a fair bit into it as well. I now wake up on Saturday mornings with a lis…
It's not an investment if you live in the property.