Current Events > Renting and housing prices are still insane

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Every now and then Ill do a search around the country for a 2 bedroom home for rent or sale just out of curiosity and its all over the place with condition and location. Ill see literal trash heap homes listed as diamond in the rough for $250k with a roof barely attached. Then Ill see nice homes in a quiet not well known neighborhood for $180k.

Ill then see a home for $200k thats too good to be true just to see the description post that its a starting price for an auction.

Renting prices are roughly the same besides your big cities and even those are really deceptive. Ill see $900 rent homes listed and then Ill click the listing just to see its a shared 1 bedroom.

Then theres me that only pays $600 a month for a 3 bedroom 1 bathroom with half finished basement. My neighborhood is pretty decent too for at least a few miles from my neighborhood. Makes it hard to justify buying a house at this moment. The house is worth around $100k just like some of these diamond is the rough homes I saw. I got lucky finding my landlord though. It just happened to be on Craigslist around 5 years ago from a property manager that looked too good to be true at the time.

Makes it hard to believe these prices are anywhere near accurate knowing my landlord is doing just fine renting out 3-4 homes for affordable prices. He even fixes anything that goes wrong same day or next. So how is it these other landlords and realtor companies are able to get away with it federally and by state knowing its bad for the economy if people cant afford a good chunk of these homes?

HorsemnBusiness posted...

literal trash heap homes listed as diamond in the rough for $250k with a roof barely attached. Then Ill see nice homes in a quiet not well known neighborhood for $180k.

Location matters more than the actual house.The land value is a huge part of the price.

I'm at a point where I'm just going to buy a house boat and live in it.

MisterPengy posted...

Location matters more than the actual house.The land value is a huge part of the price.

Thats a shame because it really shouldnt. Im 20 mins from Kansas City where the rent is $1200-1500 a month to live somewhere decent.

Yeah I dont get how people pay rent Ive never done it

VampireCoyote posted...

Yeah I dont get how people pay rent Ive never done it

Its mainly because Im married and have pets. Im willing to pay to keep that. Before I was only paying $250 a month in a shared house with 1 other co worker.

I bought my house a year ago and despite rates being ~2% higher than what I got my house is estimated to be ~10% higher, at least according to zillow/redfin/realor.com/etc...

It's insane that more than doubling rates since covid haven't dropped prices.

Yeah its insane where I live

our houses Zillow estimate just hit $500k for an 1800 sq ft house on a .08 acre lot

was fortunate to have had parents that encouraged me to buy a house while there were still Obama-era first-time homebuyer incentives

The house I bought last June started at $210,000 CAD 2 summers ago, and over the course of the year came down to $160,000. It's 1,100 square feet on 2,100 square feet of lot. Ridiculously small footprint, and a tiny house that you would be hard-pressed to raise a family in.

HorsemnBusiness posted...

Makes it hard to believe these prices are anywhere near accurate knowing my landlord is doing just fine renting out 3-4 homes for affordable prices. He even fixes anything that goes wrong same day or next. So how is it these other landlords and realtor companies are able to get away with it federally and by state knowing its bad for the economy if people cant afford a good chunk of these homes?

Because it's greed and it's not really regulated. Why charge an affordable price when you can maximize your profit instead?

VampireCoyote posted...

Yeah I dont get how people pay rent Ive never done it

Because with the prices of buying a home, most people have no choice but to start out renting

Sadly we have a huge shortage of homes in many parts of the cities where people want to live that's lead to the kind of speculation that we've seen. We need to build lots more housing but in order to increase the supply and help push down costs.

VampireCoyote posted...

Yeah I dont get how people pay rent Ive never done it

Lmao

HorsemnBusiness posted...

Thats a shame because it really shouldnt. Im 20 mins from Kansas City where the rent is $1200-1500 a month to live somewhere decent.

You dont think location should be factored into price? What?

NoxObscuras posted...

Because it's greed and it's not really regulated. Why charge an affordable price when you can maximize your profit instead?

Because with the prices of buying a home, most people have no choice but to start out renting

Look on the bright side: You'll usually more in rent than a mortgage would be, plus it will go up 10% every year. So you'll never be able to save enough money for the upfront costs of a house!

...Wait, that's not a bright side at all. :/

emblem-man posted...

Sadly we have a huge shortage of homes in many parts of the cities where people want to live that's lead to the kind of speculation that we've seen. We need to build lots more housing but in order to increase the supply and help push down costs.

luckily where I am building is actually feasible for middle class. Were getting a 4% interest rate too. Cant wait until we move in.

pepper2012 posted...

You dont think location should be factored into price? What?

Not really to the extent of my example being Kansas City that is sort of a shit hole too. People are paying $1500 a month for a home without a drive way or $400k+ for a home without a driveway or is off a busy street. A location like say NYC or Silicon Valley I get.