They realized someday people pay off mortgages. No one’s ever paid so much in rent that they stopped having to pay.
Comment on Housing prices
unitedwithme@lemmy.today 3 weeks ago
Private businesses being allowed to buy up the market to artificially increase prices and scarcity. How else can you ensure real estate is a solid investment stream?
givesomefucks@lemmy.world 3 weeks ago
WhatAmLemmy@lemmy.world 3 weeks ago
And these cancerous parasites are doing it to everything possible, sucking the goodness and value out of the entire planet and life itself, because their greed is a terminal mental illness.
13igTyme@piefed.social 3 weeks ago
Unfortunately it isn’t terminal.
Sidhean@piefed.social 3 weeks ago
Good luck curing it before it kills us all :(
makeshift0546@lemmy.today 3 weeks ago
This is nonsense. Corporations own 10% of housing. There is pressure but it’s not a primary driver people need to stop parroting this
Homes are treated as speculation and investments. NIMBY ism abound when it comes to density. Expensive labor for new home construction.
These are the primary drivers.
Zannsolo@lemmy.world 3 weeks ago
There’s probably another 10% owned by individual landlords with 3+ properties as well. It’s driving prices far more than you think. I’m my town something like 37% of single family homes are rental properties, if you don’t think that’s causing insane inflation of house prices in my area you’re crazy.
chonglibloodsport@lemmy.world 3 weeks ago
The biggest issue is lack of construction. We’re building fewer units now than we were in the 1960s, despite having double the population today.
Zannsolo@lemmy.world 3 weeks ago
There’s been way more new houses built in the greater area in the last 10 years than were ever built when I was growing up.
Adjusted for inflation I probably make about 60% more than my stepdad did when they bought a house in 1997. That house is now worth almost 5x what the bought it for. And the mortgage for the house as a first time homebuyer is probably close to 8-10x what it was for them.
The house next to my friends probably needs to be a complete rebuild and it’s likely going to sell for 800k. It is a good location but it’s not particularly big and is unlivable best case you could take it down to the studs but I didn’t even think that is actually enough to fix it.
Must of the rentals here are owned by a few family owned property management companies.
unitedwithme@lemmy.today 3 weeks ago
Dude, so much of our area has turned into corporate rentals for when they host guests, or rent them out when not needed for business personnel.
The house close to my parents went for almost 40k over asking last year, so not even in a heated market.
makeshift0546@lemmy.today 3 weeks ago
👌👍
Waterpumpee@lemmus.org 3 weeks ago
Really basic 100m2 house is 450.000€ here. No basement no lot. Construction is stupid expensive since ukraine war started. Add to this, everytime there’s a sale several people demand processing fees in % of the value including state… This drives prices only up.
Doesnt help that china built their economy on real estate in the last decades, consuming lots of the raw materials. Also ever stricter regulations like insulation, heating, electricity is a point.
Companies buying homes shouldnt exist but we are at 650-750k for a 4 person home with barely any lot without that already.
schipelblorp@sh.itjust.works 3 weeks ago
I think that’s part of it, but a larger part–having been a local reporter–is that government is run by people trying to keep property values high. In cities, that’s real estate developers and landlords. In suburbs, it’s typical homeowners.
Most construction brings down property values: increase supply=lower demmand=lower prices. There is therefore a strong political will to oppose ALL new construction.
The second concern is: how do we keep poor people out? Things like minimal lot sizes are designed to keep the prices up and limit the amount of new citizens.
The third concern is: how can we spend the most of our money on OUR children’s education. Many suburbs are spiritually and economically designed to do ONE thing: get kids into good colleges. That means high property valuations across the board so the most money can go to individual children’s education. There are very many suburbs people don’t even move to UNLESS they’re having children, and they move out when they’re kids leave school.
If you build an apartment building in one of these suburbs and children start moving in, what happens? THe money from the rich houses is now diverted away from the rich children and towards the poor children, who are now paying much less in taxes.
I do like the oligopoly narrative, but we have to face that we are facing MASSIVE FAILURES on a social and political levels. Everybody is scrapping for themselves and building walls and pulling up ladders and basically being as self-interested me-and-mine as possible, at the same time money is becoming the dominant form of political activity with which the masses of regular people can not compete.
AdolfSchmitler@lemmy.world 3 weeks ago
Don’t worry, with birth rates dropping like a rock we’ll have plenty of extra houses in a couple generations, assuming humanity can make it that far.
schipelblorp@sh.itjust.works 3 weeks ago
The other factor with much of our development is that it requires an automobile, automobiles that are consistently getting more expensive to buy and repair. We’ve really fucked up.
Frozengyro@lemmy.world 3 weeks ago
No, we’ll destroy houses for freeways and data centers
chonglibloodsport@lemmy.world 3 weeks ago
Or they’ll be bought up and turned into rentals. Student houses, Airbnb, etc.
caseyweederman@lemmy.ca 3 weeks ago
Doubt it. There are plenty of empty houses right now.
matlag@sh.itjust.works 3 weeks ago
Right now, the folks keeping an empty unit for speculation can afford to keep it empty.
When the less wealthy investors who need to pay a mortgage for their micro-estate empire of 3 units realize the demand is fading, they’ll be forced into lowering rental cost and maybe even selling.
China has seen a ginormous housing value appreciation over decades. The population is shrinking and the correction is happening. It is brutal.