Economy Greatest Economic Period in American History Has Americans Rethinking American Dream

[Mr. Shickadance]

Yep reality is disappointing I know

 

[Rob Battisti]

Well I guess I just assumed based on all your past posts, but if not my point still stands. Times are tough but electing trump or more republicans isn’t the answer.

Okay — well I’m not blaming any one party. It’s both parties.

I don’t think either party wants to make it better. I’m curious if you think the current party is making it better?

 

[Mr. Shickadance]

You mean a 3rd party that solely aligns itself with your goofy ideology

What’s my goofy ideology? And no I mean 3rd parties unfortunately right now have no real chance of winning a national election.

 

[Mr. Shickadance]

Okay — well I’m not blaming any one party. It’s both parties.

I don’t think either party wants to make it better. I’m curious if you think the current party is making it better?

Sure.

I don’t think they are making good enough strides to make it better but I believe they are doing less to make things worse than the other party would be. Also it’s pretty hard to get things through congress, so not really a hundred percent their fault.

 

[MeatheadMike]

Yep. Thanks for the research. The next question is; What's driving up the cost of homes at a rate much faster than everything else? And what's the best way to address it?

This situation slowly started after the subprime crisis. Since then builders were building much less, creating a systemic undersuply of housing.

The breaking point hit during COVID when the Fed slashed interest rates to the lowest point in history, creating a buying frenzy which completey depleated the housing supply. Then soon after (due to inflation) the Fed did a 180 and raised the rates to the highest in 20 years.

Under normal circumstances this would have put downward pressure on prices. But since 90% of homeowners refinanced during the time when mortgage rates were ~3%, they have no intention of moving and buying something with more than double that interest rate. This is keeping supply perpetually low and prices high.

Lifting zoning laws would help but that is largely on a local level.
My solution from the national level would be to put new taxes on people/corportions renting out (or even just holding onto) single family homes they don't use as their primary residence, to force inventory back into the market.
Also subsidising home construction so there's a consistent supply. Doubtful we would see any of this, especially if a Republican is elected.

 

[Mr Holmes]

Yep reality is disappointing I know

Yeah, I know! Larry Fink sure hates Biden and the democrats for putting the screws to him. Right?

 

[Blayt7hh]

For reference,

1994

Median Wage: $32,263
Median Housing Price: $130,000
Mortgage Rate: 8.28%

2023

Median Wage: $48,060(+48%)
Median Housing Price: $412,000(+216%)
Mortgage Rate: 8.45%

Inflation between 1994 and 2023




Basically, our wages went up 50%, costs of goods went up 105% and housing went up 200%.

@jk7707 does that answer your question?

Yep. My brother in law made a great point when it comes to housing costs too. A lot of it is due to the creation of the 30 year mortgage, which I believe happened in the 80s/90s.

 

[JudoThrowFiasco]

I mean if the American dream is based on home ownership, the US has by far and away one of the best price to income ratio and price per sq foot compared to any other first world western nation. You also kept consistent on homes built to population growth ratio. Sure there's pockets where it's high due to demand, but the real issue is less people per household compared to any other "golden era" I.e more singles and homes are bigger and nicer.


Still, America > basically anywhere else worth living when it comes to housing.

 

[kflo]

My taxes took a big jump with this administration…..partially offsetting higher income.

And as my man Patrick once poetically said:

 

[Mr. Shickadance]

Yeah, I know! Larry Fink sure hates Biden and the democrats for putting the screws to him. Right?

One side is demonstrably worse at regulation than the other. One side is so pro deregulation it is apart of their platform.

 

[Don Quixote]

The stock market is the stock market. It does not correspond with the cash register, food or house prices despite the overwhelming amount of people who think it does. When most people say their main concern is the economy, they are thinking of their own individual economic stability.

 

[Andy Capp]

I think the solution is to cut taxes for the wealthy and corporations so they can buy more housing, thus to push up housing prices even more.

Not to mention letting them buy more investment properties that sit vacant (or use for short term rental--same thing) until the price is right.

 

[MeatheadMike]

Okay — well I’m not blaming any one party. It’s both parties.

I don’t think either party wants to make it better. I’m curious if you think the current party is making it better?

I agree that either party doesn't really care much to make this better. But I'd say the current party is also not doing anything to make it worse either. If a republican were elected, the chances are high that their first order of business would be to slash taxes, which would undoubtably make this worse.

I already posted what I think could be done on the national level to improve this (but likely won't be). What do you think could be a solution?

 

[metal7555]

Due to the low uneplyomemt, I'd say this economic climate is great unless you are trying to move.... In other words, it's great for majority people.

Hence why little will be done on the national level to address this regardless of which party is in power. Homeowners like high home prices.

Don't war room post, but that's a problem for people close to retiring and trying to finanace a new home -- or someone like my buddy who has 4 kids.

We picked up a place financed at 2.7% during COVID which was a steal, and sure, the sell value is way up...
.....problem is, if you have a situation where you need a larger place, more space within yer range, and equal price or near by, or even a downgrade of a bit, they are going to inevitably try and finance you in at something like 7.8% fixed right now, with the idea that it will go down each year (or some scheme like that) -- so yer bleeding off all the value of yer past home anyways.

So when you're out to get a new place, you're getting fucked into a bad deal that barely makes yer current home worth selling, thus making it very skewed and fucky to even consider wanted to do any kinda change... if that makes sense...

------------------

Far as cost of living, it's already been said. If you are in the markets and playing a big stack, you're probably doing pretty well.

In short, renters are in dire straits financially, while homeowners are “continuing to reap the rewards” of cheap pandemic money that left renters with nothing but inflation and ongoing problems.

I got a 5br house here, and rent out to a retired vet (income SS based, tons of medical problems), and a young couple (at very, very affordable prices) but their cost of LIVING is their constant struggle -- and they live by super, super modest means and basics.

Don't even know how the fuck my buddy with a wife 'n 4 girls survives even with a great job, just thinking about the cost of toilet paper and stuff lol.

 

[TardStrong]

Thanks to hard work and living within my means yes I am doing great. No college for me or my wife and we are 43 months away from paying off our house here in CA. We will both be 43 years old when that happens. My only debt is my mortage. I would say right now we are doing the best financially even with the price of food and gas. 95% of people I work with I can't say the same for though. My wife and I have just been playing chess no checkers for the past 15 years

 

[lifelessheap]

Print Trillions = devalue dollar = assets skyrocket.

Housing is an asset class, so get a time machine and don't allow Covid excuses to print Trillions.

 

[SummerStriker]

I’ve been told there has never been a better economic period in US history than what we are experiencing right now. However, so many Americans can’t even afford a home.

Do you feel like we’re doing well economically? Are you more prosperous than at any point in your life?

I’m curious how Sherdoggers are feeling on the state of the economy.

https://www.bloomberg.com/news/arti...srnd=homepage-americas&embedded-checkout=true

It is a class divide. If you have a college degree and bought your house before 2008, congrats.

 

[HereticBD]

Well I guess I just assumed based on all your past posts, but if not my point still stands. Times are tough but electing trump or more republicans isn’t the answer.

As opposed to...this?

You can say that electing Republicans isn't the answer(and it probably isn't. Nothing ever is), but the crown weighs heavy on those who wear it. Convincing people that current shit is better than potential shit in the future, is gonna be a pretty tough sell. Especially when people are remembering the pre-Covid Trump days.

 

[Sinister]

FWIW "the American Dream" was always a consumerist/corporatist scam designed to get Americans to live atomized existence and spend money until we die.

 

[Rob Battisti]

FWIW "the American Dream" was always a consumerist/corporatist scam designed to get Americans to live atomized existence and spend money until we die.

just when I was starting to like you…