Quote:
Originally Posted by The North One
A lot of people don't own their home, especially the younger generations. Just because mom and dad might be able to sell their house for more in certain areas doesn't mean they're going to and
why the hell would they?
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You're right, of course. There are many people who are harmed when housing costs rise. But my point was that these "housing crisis" articles always ignore the fact that most people already own their homes, and any price increases benefit these folks.
Would you have rather bought the same housing in Metro Toronto or Metro Detroit 30 years ago? Obviously the Toronto purchase would have been a much more financially sound investment, even though Toronto has a supposed "housing crisis" and Detroit doesn't.
Quote:
Originally Posted by The North One
Your little theory would make sense if there weren't constantly new people that need homes to live in, that's why it's a crisis. You say it's not a problem and yet think we need subsidized rental housing? you just contradicted yourself.
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I think there are serious issues when housing prices massively outstrip income/wealth gains but I also think it's overall more good than bad. More people benefit than are harmed when property prices rise. I would rather buy in the Bay Area right now than in Cleveland, even though the pundits tell me the Bay Area is in "crisis" and Cleveland is a "steal".
New people do need homes to live in, this much is true, but those new people will benefit from the price increases once they purchase, and will often fund their purchases based on the property gains from the previous generation. If parents/grandparents own a million dollar home, and the kids can't afford the market, it's likely the kids will realize the gains from parents/grandparents either through death/inheritance or through financial assistance.
I know a ton of thirty-somethings living in $1-$2 million apartments here in NYC, and I would say most don't have the income to support their home purchases. Yeah, there are a few working in finance, there's a dermatologist, there's a BigLaw partner. But there are also architects, social workers, govt. workers, nonprofit types, and they have $1.5 million 2 bedrooms. They are often cash buyers, or put down huge down payments, thanks to inheritances or Bank of Mom and Dad.