Americans don't believe middle class can afford homes • Hacker News Board

Re: Americans don't believe middle class can afford homes

#181

Post by cykros » Fri, Jan 26, 2024, 3:16 PM UTC

asadotzler wrote: post #113

skywhopper wrote: post #68

Earlier quoted context omitted.

That’s 7-10% price growth per year. How is that not ridiculous?

Bay Area housing has been increasing at about 7% per year for about 40 or 50 years.

And the Bay Area is the outlier everyone points to when talking about absurd housing markets.

So, you know, ridiculous.

It also seems to be finally hitting a wall post COVID.

Re: Americans don't believe middle class can afford homes

#182

Post by cykros » Fri, Jan 26, 2024, 3:18 PM UTC

dsaavy wrote: post #43

"believe" is a funny word to use for a mathematical equation

What you can afford is based on what you've modeled based on assumptions about your future cash flow, unless you're talking about what you can afford to pay out of pocket, without taking on any debt in the process. Which isn't how people talk about buying houses.

Any time credit is involved, belief in one's assumptions is absolutely part of the equation.

Re: Americans don't believe middle class can afford homes

#183

Post by asadotzler » Wed, Jan 31, 2024, 1:45 AM UTC

cykros wrote: post #181

asadotzler wrote: post #113

Earlier quoted context omitted.

Bay Area housing has been increasing at about 7% per year for about 40 or 50 years.

And the Bay Area is the outlier everyone points to when talking about absurd housing markets. So, you know, ridiculous. It also seems to be finally hitting a wall post COVID.

Half a century of strong housing markets isn't a random fluctuation likely to change.