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Americans need to be richer than ever to buy their first home

bloomberg.com

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Re: Americans need to be richer than ever to buy their first home

#3

Post by anovikov »

blue039 wrote: post #2

[flagged]

How do they drive up rent or home prices if they dump houses back on the market then? If neither supply nor demand changed as a result, why would the price change?

Also, why does it happen with houses (that provide crappy average returns because they don't capture the effects of productivity growth i.e. do not create real rent, they are more like crypto), not with stocks?

Re: Americans need to be richer than ever to buy their first home

#4

Post by xwdv »

blue039 wrote: post #2

[flagged]

Why would they willing cause a housing crisis? All that will do is flood the market with cheap inventory that will be quickly snapped up by everyone waiting on the sidelines for the next 2008 so they can get rich in the next boom cycle of real estate investing. Then prices will start rising and BlackRock will find itself trying to buy back inventory again or get left out.

If houses get very cheap again I know for sure I’ll snatch up a property or two.

Re: Americans need to be richer than ever to buy their first home

#5

Post by yonran »

blue039 wrote: post #2

[flagged]

BlackRock and other landlords just convert owner occupied units into rentals, making it relatively more affordable to rent. If they are the problem, then prices would be too high but rents would be too cheap. But if both prices and rents are becoming unaffordable, then lack of overall supply is the underlying problem.

Re: Americans need to be richer than ever to buy their first home

#6

Post by SinjonSuarez »

xwdv wrote: post #4
blue039 wrote: post #2

[flagged]

Why would they willing cause a housing crisis? All that will do is flood the market with cheap inventory that will be quickly snapped up by everyone waiting on the sidelines for the next 2008 so they can get rich in the next boom cycle of real estate investing. Then prices will start rising and BlackRock will find itself trying to buy back inventory again or get left out. If houses get very cheap again I know for sur…

It’s almost as if the incentive structures were meant to make the rich richer and the poor poorer.

If houses get cheap I know for sure I still won’t be able to afford even 1

Re: Americans need to be richer than ever to buy their first home

#7

Post by hourago »

anovikov wrote: post #3
blue039 wrote: post #2

[flagged]

How do they drive up rent or home prices if they dump houses back on the market then? If neither supply nor demand changed as a result, why would the price change? Also, why does it happen with houses (that provide crappy average returns because they don't capture the effects of productivity growth i.e. do not create real rent, they are more like crypto), not with stocks?

> If neither supply nor demand changed as a result, why would the price change?

If I buy all the lithium supply in the world and sell it back, what price do you think that I will charge?

Monopolies and cartels make prices go up.

Re: Americans need to be richer than ever to buy their first home

#10

Post by tayo42 »

This is something I hope the government can step in and help with. Maybe really low/no interest loans for first time home buyers so they can at least get into the market. Maybe that exists? Income limits need to account for up to date salaries. I'm not rich or wealthy just because I had a couple years of making 250k. I still have loans and im still burning up cash on renting. Taxes take away a ton of that income. Some guy making 70k making these rules probably thinks im rubbing shoulders with Leonardo Deicaprio at parties because making more then 200k is so unfathomable to the average person, it seems like wealth.

Rent situation needs help to. Were just throwing away cash on low quality rentals. A 2br in my complex over the last year is now listed at 1.5k more then a year and half ago. 3k to 4.5k. "Thats what the market wants" or something stupid is the reason, but these are not 1.5k better then it was before. How is this not price gouging? If i want to move I have to burn even more cash? Rent control keeps give me a rate under market now so there is no reason to move. Even that was some how allowed to be nearly a 10% increase. The only option is to buy to get away from this crazyness. Falling behind no matter what.

I don't get how these insane markets are allowed to exist with no regulation on necessary needs for people. IDK what else to do besides take my american cash somewhere where I am extremely ahead settle down there and chill.

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