Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Will real estate ever be normal again?

nytimes.com

Post reply on HN
Print view View original

51–60 of 620 posts

Re: Will real estate ever be normal again?

#51

Post by RappingBoomer »

jedberg wrote: post #32

Not until zoning or ownership laws change. More people want to live in the places then there are places to live. There are three ways to fix this: incentivize builders to build more places to live, have the government build housing, or penalize investors. Or any combination of the three.

here is the problem: single family homes have now been financialized--the corporations have invested in them and will want to maintain the increase in home prices...therefore corporations will do what they have always done to increase the value of their assets--they will buy politicians and get the politicians to pass laws to keep home prices up...such as? Ok, such as passing state and federal laws that make home building more expensive, time consuming and costly...more strict environmental regulations are the most likely tool to be used by the corporations & politicians to suppress the supply of new homes...

Re: Will real estate ever be normal again?

#52

Post by uejfiweun »

RappingBoomer wrote: post #49
uejfiweun wrote: post #45

The Fed at this point controls the whole economy and they have two options: 1. Raise interest rates and stop printing. Crazy inflation stops, but asset prices crash and we enter a major recession or depression. The end result will likely be unrest and blood in the streets. 2. Do nothing, keep printing. Inflation picks up massively. The economy keeps humming along but young people, including myself, are permanently pr…

the problem is that if inflation continues, then interest rates will go up, whether the fed wants them to or not...once rates go up, money will flow from asset investment to bonds etc...and that will crash asset prices...checkmate...one way or another, asset prices WILL crash

How exactly does this work? I thought that the fed controlled interest rates. Under what circumstances could the interest rate rise independently of the fed?

Re: Will real estate ever be normal again?

#53

Post by jedberg »

mbesto wrote: post #48
jedberg wrote: post #35

Earlier quoted context omitted.

But where are all these jobs? Aren't they mostly in the already impacted cities?

https://www.bls.gov/charts/job-openings-and-labor-turnover/o... https://www.bls.gov/charts/job-openings-and-labor-turnover/o... Considering there is no regional specific trends and the highest % of jobs are actually in white collar jobs (pro services, healthcare, etc.), I think its fair to assume this data represents the whole of the US...no matter where you live.

Yes, it’s for the whole US, which tells us nothing useful for this debate.

If there were 10,000,000 jobs in NYC and 1 job in Kansas or 10,000,000 jobs in Kansas and one in NYC, the graphs would look the same.

So they tell us nothing.

Re: Will real estate ever be normal again?

#55

Post by dang »

jschveibinz wrote: post #6

I commented on this same article yesterday: https://news.ycombinator.com/item?id=29212851 Here is a link to a relevant article on the zoning part of the problem, posted today: https://news.ycombinator.com/item?id=29219042

I've moved your lonely comment into this thread and rolled back the clock on it so it ranks normally relative to the others. Thanks for not copy-pasting :)

I've also put that other submission into the second-chance pool (https://news.ycombinator.com/pool, explained at https://news.ycombinator.com/item?id=26998308), so it will get a random placement on HN's front page. Thanks!

Re: Will real estate ever be normal again?

#56

Post by sushsjsuauahab »

I don't have any economic theories to offer.

All I know is I love my house, with all of its land, trees, and nice quality living.

I will protect this thing to my death, because it is so much better than living in an apartment. I don't care if it costs me $4,000 a month.

Re: Will real estate ever be normal again?

#57

Post by bumby »

sushsjsuauahab wrote: post #56

I don't have any economic theories to offer. All I know is I love my house, with all of its land, trees, and nice quality living. I will protect this thing to my death, because it is so much better than living in an apartment. I don't care if it costs me $4,000 a month.

How do you define “protecting” that thing?

If it involves, for example, lobbying against high-density housing, that might be part of the problem.

Re: Will real estate ever be normal again?

#58

Post by naveen99 »

uejfiweun wrote: post #52
RappingBoomer wrote: post #49

Earlier quoted context omitted.

the problem is that if inflation continues, then interest rates will go up, whether the fed wants them to or not...once rates go up, money will flow from asset investment to bonds etc...and that will crash asset prices...checkmate...one way or another, asset prices WILL crash

How exactly does this work? I thought that the fed controlled interest rates. Under what circumstances could the interest rate rise independently of the fed?

Fed controls only nominal interest rates on treasuries. The real / effective rate is set by the market at auction by adjusting the price on the bonds.

Re: Will real estate ever be normal again?

#59

Post by ByteJockey »

Supermancho wrote: post #7
rossdavidh wrote: post #3

Should have a (2007) in the description. :)

https://www.nytimes.com/2021/11/12/magazine/real-estate-pand... The publication year is 2021, which is the typical way a story is tagged. I have to wonder why 2007 and not 1913 or 1929? Throwing out a date does not imply a specific context or add to the discussion.

2007 implies right before the 2008 recession where housing prices tanked.

In 2007 people were panic buying houses because they thought that if they didn't buy right now, they'd never be able to afford to buy a house.

Re: Will real estate ever be normal again?

#60

Post by syshum »

bumby wrote: post #57
sushsjsuauahab wrote: post #56

I don't have any economic theories to offer. All I know is I love my house, with all of its land, trees, and nice quality living. I will protect this thing to my death, because it is so much better than living in an apartment. I don't care if it costs me $4,000 a month.

How do you define “protecting” that thing? If it involves, for example, lobbying against high-density housing, that might be part of the problem.

" land, trees, and nice quality living." are mutually exclusive, High-Density housing is terrible and I NEVER want to live in a highly dense urban settings.

My home in the suburbs with 1/2 acre lots is FAR FAR FAR too dense for me... I want less density than that, but newer subdivisions are dropping to 1/4 or 1/5 acre lots, it is terrible

Post reply on HN