The housing market crisis in America
I was talking to my mother about this for over an hour this week.
I blame the internet. People in our parents' and grandparents day didn't have the luxury of being able to compare pricing with so many options to rent or buy. They went to affordable colleges and were more encouraged to succeed by their society. They were given a living wage with a reasonable amount to hire a contractor to build the houses they wanted.
Now you have the proven outsourcing of a huge portion of the jobs cut out from under our feet and unreasonably high prices on everything, where you have to bid and compete on overpriced homes.
There aren't any blanket statements but overall society has shifted into a greedier version of itself.
Inflation-adjusted value: A $100,000 home in 1967 is equivalent to about
$1,121,747 in 2025 due to inflation, suggesting a substantial increase in real value.
James chapter 5. I just need to not grumble against and not judge my friends & family.
I blame the internet. People in our parents' and grandparents day didn't have the luxury of being able to compare pricing with so many options to rent or buy. They went to affordable colleges and were more encouraged to succeed by their society. They were given a living wage with a reasonable amount to hire a contractor to build the houses they wanted.
Now you have the proven outsourcing of a huge portion of the jobs cut out from under our feet and unreasonably high prices on everything, where you have to bid and compete on overpriced homes.
There aren't any blanket statements but overall society has shifted into a greedier version of itself.
Inflation-adjusted value: A $100,000 home in 1967 is equivalent to about
$1,121,747 in 2025 due to inflation, suggesting a substantial increase in real value.
- The nominal average wage has increased dramatically, but the purchasing power has not kept pace with inflation, so a higher wage does not necessarily mean a higher standard of living.
James chapter 5. I just need to not grumble against and not judge my friends & family.
The proposal for a 50 year mortgage is one of the worst things that could happen. Another way to further financially enslave people.
I bought my present home at the bottom of a Ma and Pa ski hill back in 1994. A couple of years later a huge Dutch comglomerate bought the ski hill and built two 4 star hotels and condonimians there and upgraded everything. Now the ski hill is famous and is world class. Try to imagine how much my home is worth now? The realtors tell me that I could get 10 times what I paid for it and it is now mortgage free.
I also bought GM stocks when they were suppossed to be going bankrupt, they were at the lowest price since the Korean war, everyone told me that I was crazy, This was back I think in 2008. Imagine what they are now worth?
I also bought GM stocks when they were suppossed to be going bankrupt, they were at the lowest price since the Korean war, everyone told me that I was crazy, This was back I think in 2008. Imagine what they are now worth?
A couple of good investments there for sure. Real estate is always a good investment. Even if the house isn’t worth anything the land will always be.
That’s happened to a local ski hill community close to here as well. Ten years ago you could pick up a small lot for a weekend getaway cabin, now the properties have sky rocketed and have easily tripled in ten years time.
I wonder how many new homeowners and fresh younger buyers are aware of payments. I was reading a post of a new home owner complaining because of their escrow/payments being increased and they thought that they would have to have a standard payment each year, but because of property tax and insurance rates hikes they increase the payments. Reading the posts they thought it was like a car payment that never increases (which you need to budget your insurance in as well) but remains the same each month. So now because their wages haven’t increased they can’t afford the homes anymore.
Yeah the problem with appreciating real estate prices is that the taxes also go up in kind.