"The Silent Depression" & Single-Family Homes... a great big nothingburger or...?

[Ingomike]

This seems relevant here. Probably relevant to many threads, but this is as good as any.

Stop Dooming

townhall.com

I believe I call that normalcy bias. I believe Reagan was right that we need to present a positive goal, but he also pointed out what was wrong as well.

 

[Wolfhound]

The interest rate when I bought my first home for $112,000 in Md was around 16.5%
The payments were about 50% of our bring home each month.

Yeah basically the same for me. Our house payment was half our monthly income. It was a huge stretch to make it happen. Maybe there are some people who sail easily thru life but I am not one. I have worked two jobs at times just to make ends meet.

We are doing great now though. Not rich but comfortable.

 

[bobzilla]

Yeah basically the same for me. Our house payment was half our monthly income. It was a huge stretch to make it happen. Maybe there are some people who sail easily thru life but I am not one. I have worked two jobs at times just to make ends meet.

We are doing great now though. Not rich but comfortable.

Nothing in life worth having is easy. Wife and I maxed out ourselves in '04 when we built our house. We spent the next 2 years not eating out, going on vacations (other than seeing her parents in Tucson, gas each way and free room/board there) and saving the money we spent to build it. We busted butt, worked all the hours and did all we could to better ourselves and now we are living in a home we paid off early, are planning to retire at 55 and enjoy ourselves every chance we can. We have since been on multiple cruises, hong kong, I've spent way too much "racing" etc.

We have acquaintances that will make the comment "must be nice".... and our response is "yep, sure is. Didn't get here overnight nor without busting our ass either." Nothin infuriates the wife faster than that comment.

 

[MCgrease08]

Nothing in life worth having is easy. Wife and I maxed out ourselves in '04 when we built our house. We spent the next 2 years not eating out, going on vacations (other than seeing her parents in Tucson, gas each way and free room/board there) and saving the money we spent to build it. We busted butt, worked all the hours and did all we could to better ourselves and now we are living in a home we paid off early, are planning to retire at 55 and enjoy ourselves every chance we can. We have since been on multiple cruises, hong kong, I've spent way too much "racing" etc.

We have acquaintances that will make the comment "must be nice".... and our response is "yep, sure is. Didn't get here overnight nor without busting our ass either." Nothin infuriates the wife faster than that comment.

Good for you.

Here's one to add to the mix when you get the 'must be nice' comment, "work hard for 25-30 years and you too can be an overnight success."

 

[bobzilla]

Good for you.

Here's one to add to the mix when you get the 'must be nice' comment, "work hard for 25-30 years and you too can be an overnight success."

Love it. I’ll pass that on to the wife .

 

[wtburnette]

My stepson is 27. He decided to go straight to college after HS and got an engineering degree. It took a little bit after graduating (around 10 months), but he got an offer with a great place in OH starting at 62k/yr. He's been there for ~3 years now and is up to $85k/yr because he busts his butt and loves what he does. He has a nice apartment and a new car. Yeah, he also has a large student debt that he also pay for, but he's making enough money and has enough future earning potential that I have no doubt he'll do fine financially the rest of his life (aside from the possibility of the gubbermint screwing things up for all of us). Anyone who wants to can get into the trades and start making a decent income. You will undoubtedly have to have a few lean years first, but if you scrimp and save a bit you can come out on the other side looking pretty good. I won't say it isn't tough, but it can be done.

 

[Route 45]

 

[smokingman]

Single family home sales are down 31% so far in 2023,with a total of -45% in the last 12 months.
It is already worse than 2008-09.

Welcome To The Real Estate Industry Apocalypse

Higher interest rates are absolutely strangling the real estate industry, and there is no relief in sight. The sudden shift from a very low interest rate environment to a much higher interest rate environment has

theeconomiccollapseblog.com

 

[indyartisan]

1955

 

[Route 45]

View attachment 2989641955

Average salary in 1955 was $3400 a year.

So roughly triple a year's income for the best 3 bedroom model.

Average salary today is $56,940.

Not seeing any new construction in the $170k range.

 

[Route 45]

Higher mortgage rates, rising home prices continue to frustrate buyers

The median price for existing homes was $407,000 last month, according to the National Association of Realtors.

www.wthr.com

 

[HoosierLife]

Yeah it’s bad. I want to be one of those evil landlords everyone is complaining about.

I have the money to put down 25% multiple times and I can’t find a property in the greater Indy area that would be cash flow positive.

We are seeing the end result of all this money printing unfortunately.

 

[Route 45]

 

[indyartisan]

I am seeing 90% of the labor building these homes are immigrants working at “bargain” prices.
So where is all the money going?

 

[Ingomike]

I am seeing 90% of the labor building these homes are immigrants working at “bargain” prices.
So where is all the money going?

How do you know they are working for ”bargain” prices?

Sure doesn’t seem to be that big of a difference when I get quotes…

 

[Ingomike]

How much more should a technological marvel with electric, plumbing, sealed tight homes cost compared to wood box?

 

[Route 45]

How much more should a technological marvel with electric, plumbing, sealed tight homes cost compared to wood box?

Wood box? Are you seriously implying that houses built today are more solid than construction even 20 years ago? And I'm thinking that we've had "tEcHnOLoGiCaL mArVeLs" like electricy and plumbing for quite a while now. Are you including new LED lighting that pierces your skull and causes you bigly headaches in your assessment of today's techno wonders?

 

[indyartisan]

How do you know they are working for ”bargain” prices?

Sure doesn’t seem to be that big of a difference when I get quotes…

Your quotes and what a builder pays may be somewhat skewed.
I know because I would be in competition with them if I still did work for home builders.
I quit the new construction business back in 07 because the money was not there to make it worth my efforts.
I am much happier now days not dealing with some builder telling me how much, when to be there and when I would be done.
I was talking to probably the last American drywall crew (a father and his two sons) a while back.
He said they were working for less than they were getting in the 1970s.

 

[Ingomike]

Wood box? Are you seriously implying that houses built today are more solid than construction even 20 years ago? And I'm thinking that we've had "tEcHnOLoGiCaL mArVeLs" like electricy and plumbing for quite a while now. Are you including new LED lighting that pierces your skull and causes you bigly headaches in your assessment of today's techno wonders?

Maybe study history since your post went back to 1900…

 

[Route 45]

Maybe study history since your post went back to 1900…

Now do 1950-2000 compared to today. Do I have to explain what a chart/graph is?