Economy The Western housing crisis

[jimjamjammer]

Interesting article.
Just 1% of US homeowners sold their house in the first half of the year, leading to the lowest inventory of all time
https://markets.businessinsider.com...tes-us-home-sales-prices-affordability-2023-7

 

[650lb Sumo]

Cost of buying average home in England now unaffordable, warns ONS

Only richest 10% can afford to buy as figures show average household needs 8.6 times disposable income to meet asking price

www.theguardian.com

Only the richest 10% of households can afford to buy an average-priced home in England, according to official figures that lay bare the scale of Britain’s broken housing market.

Highlighting the result of decades of house price growth that has outstripped household incomes, the Office for National Statistics said the cost of buying a home was “unaffordable” in every part of the UK except Northern Ireland.

It said it would take as many as 8.6 years of average annual household disposable income in England, of £35,000, to afford an average-priced home, worth £298,000 last year. That is almost double the ratio recorded in 1999.

In London, where house prices have rocketed most in the past two decades, even many households in the top 10% of local earners – with disposable incomes of at least £89,901 – would not be able to afford an average-priced property in the capital.

 

[Captain Tenneal]

Most US Households Can't Afford a Median-Priced Home
https://www.costar.com/article/266860380/most-us-households-cant-afford-a-median-priced-home

Spoiler: Article

The National Association of Home Builders said nearly 30% of all U.S. households, or 39 million, cannot afford a home priced over $150,000 without exceeding one-third of their total household income.

Another 25.8 million households are unable to afford more than $250,000. So combined, 64.8 million — or nearly 50% — of the 132.5 million U.S. households can only pay up to $250,000 for a home.

But the median U.S. home actually costs far more, at almost $426,000. And 70%, or more than 93 million of all households, cannot afford that amount based on their current household income, according to the trade group, indicating steady demand for apartments.

Ireland's housing crisis: Millennials, a generation sacrificed
https://www.euronews.com/2023/07/06/irelands-housing-crisis-millennials-a-generation-sacrificed

Britain is facing a mortgage crisis. There are no easy answers
https://www.cnn.com/2023/06/23/economy/uk-mortgage-crisis-banks-meeting/index.html

As Canadian housing crisis rages on, is ‘financialization’ really to blame?
https://www.thestar.com/business/op...s-on-is-financialization-really-to-blame.html

Why France is facing a 'property crisis'
https://www.thelocal.fr/20230602/why-france-is-facing-a-property-crisis

Australian Housing Crisis: The High Price We’re Paying
https://www.forbes.com/advisor/au/property/high-cost-of-australian-housing/

Ts is one sexy bastard

 

[fedoriswar37]

Way too many immigrants man . Adleast in Canada. You see it in day to day life they just overwhelm services and take up any of the low income housing.

 

[Rob Battisti]

The answer is to eliminate residential zoning and tax everyone’s land at 80% in order to force land speculators to sell their property and build more housing.

 

[Patof]

You will own nothing and happy

Too soon Klaus.

 

[Islam Imamate]

The answer is to eliminate residential zoning and tax everyone’s land at 80% in order to force land speculators to sell their property and build more housing.

This but unironically.

 

[Cid]

The answer is to eliminate residential zoning and tax everyone’s land at 80% in order to force land speculators to sell their property and build more housing.

Communist!

 

[Rob Battisti]

Communist!

In the pod with you

 

[Cid]

In the pod with you

Gulag stew for all!

 

[Mr Holmes]

@Sinister - I can't find the thread but I'm pretty sure you and I shared some mutual disgust for the boomers. Now they're trying to weasel out of paying property taxes.

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[Broke Lester]

@Sinister - I can't find the thread but I'm pretty sure you and I shared some mutual disgust for the boomers. Now they're trying to weasel out of paying property taxes.

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How do you weasel out of paying property taxes if you've already paid till 65? How about they're probably on a fixxed income and can't afford it, shouldn't they be able to live in the home which took 20-25 years to pay off?

 

[Mr Holmes]

How do you weasel out of paying property taxes if you've already paid till 65? How about they're probably on a fixxed income and can't afford it, shouldn't they be able to live in the home which took 20-25 years to pay off?

They're free to sell if they can't afford their mc-mansions.

 

[Broke Lester]

They're free to sell if they can't afford their mc-mansions.

Then the ones who can afford to keep their homes can also start bidding wars, and you can bid on it if you can afford it.

 

[Mr Holmes]

Then the ones who can afford to keep their homes can also start bidding wars, and you can bid on it if you can afford it.

I don't get what you're saying. Anytime there are multiple buyers then there will be a bidding war.

 

[Broke Lester]

I don't get what you're saying. Anytime there are multiple buyers then there will be a bidding war.

Yes and there's also other dirty tricks like holding back offers to force a bidding war, and if there are enough bidders, they might make you go through a few rounds of bidding, jacking the price higher and higher along the way.

Also the ones who can't afford the property taxes aren't going to sell anyways, they're going to reverse mortgage. Then the bank ends up owing the home in the end and it probably gets sold without going on the market .

 

[Mr Holmes]

Yes and there's also other dirty tricks like holding back offers to force a bidding war, and if there are enough bidders, they might make you go through a few rounds of bidding, jacking the price higher and higher along the way.

I've never heard of anyone going a few rounds in a bidding war. I personally would walk away if someone suggested that.

Also the ones who can't afford the property taxes aren't going to sell anyways, they're going to reverse mortgage. Then the bank ends up owing the home in the end and it probably gets sold without going on the market .

If it gets sold then it went to the market.

 

[Broke Lester]

I've never heard of anyone going a few rounds in a bidding war. I personally would walk away if someone suggested that.


If it gets sold then it went to the market.

You'll get there, the few rounds crap was happening on the regular in the Toronto and Vancouver markets, but they've cooled for now.

No it won't go on the market cause it's not a foreclosure, it's a long term agreement to purchase by the bank. The bank will sell it at a loss to one of it's sister companies and it'll become a long term rental.

 

[Mr Holmes]

You'll get there, the few rounds crap was happening on the regular in the Toronto and Vancouver markets, but they've cooled for now.

Maybe they do things differently in Canada.

No it won't go on the market cause it's not a foreclosure, it's a long term agreement to purchase by the bank. The bank will sell it at a loss to one of it's sister companies and it'll become a long term rental.

I doubt it.

 

[Broke Lester]

Maybe they do things differently in Canada.


I doubt it.

Not maybe, I used to flip homes. It's a fact.

Why do you doubt it, Blackrock has been buying up blocks of properties. When they said you will own nothing, they never said you won't pay rent forever.