I feel like the window to buy an acceptable, livable house is moving to the right (in terms of age). Given that and numerous other factors around affordability and wage growth, who can really afford to buy a 3 bedroom house that might potentially cost anywhere between 2 and 5 million. #housing #mortgage
In a couple of years, we may see average 3 bedroom homes in the Bay Area go for $3M+
In a couple of years, in inflation adjusted terms, prices will be lower. SV and CA is losing its attractiveness, as companies and people are leaving CA. It may be higher in nominal terms but it is only inflation is underreported.
The US could use a correction. We ought to be a less expensive country than we are, given our size and our wealth, but companies are allergic to small offices, so everything goes in the biggest cities.
Everyone is afraid of taking the first step towards establishing new markets for talent, so our biggest cities get ludicrously rich, while simultaneously getting culturally starved.
HSR will be accomplished and people can live at gilroy.
Not in 10 years.. Maybe in 20.
Tech employees continue to be able to afford homes. A lot of the 30+ year old faang employees are likely to become multi millionaires and most multi millionaires want to own a home instead of rent. What’s the point of becoming a multi millionaire if you don’t get to enjoy the money. You can’t live in your stocks. The best part is the home appreciation effectively takes care of the monthly expenses and prop13 makes owning a home cheaper over the long term. It’s hardest in the first year and every year after that it gets easier to own
Yeah all that seems good, but do you think there’ll be demand to buy in 5-10 years?
If you've become multi millionaire, why bother throwing all that into a 1000 sqft dumpster for 2 million and being a house slave for 30 years instead of buying a mansion for 500k and FIRE in tier 2 city?
Few can afford them today.
Exactly what homebuyers said in 2008.
And it will continue to be the story because of what happened in 08. Corporations own the market instead of families