Comment on Housing prices

• FauxPseudo@lemmy.world ⁨2⁩ ⁨days⁩ ago

  Now imagine that house burned down. How much would it cost to replace it under current code compliance and construction costs? How much is it insured for? For example, my house is currently valued at about $200,000. I could not rebuild this house for $200,000. I’d be lucky to be able to rebuild it for $260,000.

  Anyway, let’s get back to the main point. There’s more than inflation going on here. There are multiple factors, not just one.

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  • RBWells@lemmy.world ⁨2⁩ ⁨days⁩ ago

    Yeah my husband thinks 350k would rebuild it, because part of the value is the land. But we could not rebuild what we have for any price, because the wood it’s made of is not available anymore.

    And yes - some of the increase is apples to oranges, just like with cars - the 1967 mustang I had was good for about 100k miles, maybe. New cars last easily 3x that, and safer and more efficient.

    But no way is that most of the increase. There needs to be some relationship between pay and housing that makes sense. With insurance and tax, those million dollar homes would cost nearly 8k per month even if no repairs or maintenance- that is so much more than the netpay for a good job, I don’t know who is buying them.

    I have seen several crashes already, and know price doesn’t just increase forever. Am watching with interest to see what happens here.

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