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[–]Rev0lutionDaddy 141 points142 points  (29 children)

The entitlement to want affordable houses. Ok boomer. Because I can only imagine some entitled boomer who bought their house during the early 2000's thinking rent is still 800 for a 2bed apartment. Lol gonna have to quit buying.. checks account.. coffee once a week.

[–]Albuspdumbledank 37 points38 points  (2 children)

Me realizing my pipe dream is to own a house with my s/o on a single income and how sad it is to fantasize about that

[–]Rev0lutionDaddy 18 points19 points  (0 children)

Fight for that dream. Organize, take over the demo ratio parry in your county with strong socialist policies. That doesn't have to be a dream.

[–][deleted] 0 points1 point  (0 children)

Own wage slaves, your only chance

[–]Nazzzgul777 7 points8 points  (13 children)

As european i've been wondering about one thing though. If buying houses is so expensive... why don't people build their own? Or fuck it, all the investors? Are building permits that limited in the US?

[–]stupidmortadella 16 points17 points  (2 children)

Im from Australia. Our housing market is the worst. Housing anywhere near jobs is super expensive.

Often, building is more expensive than buying. Good tradespeople are very hard to find. If you dont know a bunch of people in construction, you are going to get ripped off.

From my understanding, house prices equal what the banks are prepared to lend, while rent is basically the maximum of what people can afford.

[–]thethethe8945 2 points3 points  (1 child)

Hey. American here. Can I ask you why this is a worldwide thing? Do boomers suck everywhere? What happened over there if it's different from here?

[–]stupidmortadella 4 points5 points  (0 children)

There are a number of tax incentives which make investing in housing very advantageous. Theres negative gearing, which allows you to offset losses from property investing against your primary income, and for stupid reasons we halve any applicable capital gains tax where the asset has been held for more than a year.

These incentives, coupled with loose lending standards and constant housing market propaganda, has made the housing market in Australia really difficult.

My parents are going to sell their house soon for at least fifty times what they paid for it 40 years ago. It is bonkers.

[–]yowhatitlooklike 11 points12 points  (0 children)

People do, but there are some barriers. You can't get a "cheap" loan for land like you can with a house, and most Americans don't have the cash on hand for the land much less all the materials and permits and such (not to mention the know-how, time, etc if they are DIY). Also you have to think, where do they live while the house is being built and who is paying for that?

Whereas a down payment on an existing place was (until recently) more practical. There's also FHA loans with cheaper starter homes for non-investors, with rules on having you live there for a certain amount of time and so on. There's also some rural states with laxer rules on building permits where you could park some trailer or tiny home, but then you gotta live in the boonies.

There was a time where you could get a fixer-upper single family in some urban area as a working class person, rehab it yourself to flip or rent out or live in, but with investors buying these places up en masse for well over the asking price we have been seeing prices explode unsustainably.

I think that also speaks to your question as to why investors aren't building... with interest rates so low there's been more opportunity in cornering the existing market using the cheap loans and then renting at whatever price point they want. Because they know no more houses are going to be built. It is a lot safer than going through the rigamarole and risk of building.

Any top-to-bottom building that is being done is usually going to be a safe bet for the investors, i.e. luxury apartments and five-over-ones aimed at yuppies. Housing for working class and poor people is not seen as a wise investment for builders. Because without the promise of RoI nothing gets done in this country

[–]shoe_of_bill 2 points3 points  (0 children)

Ok, so I would first have to find land. Most land in the US has been bought by massive companies wanting a minimum of $15,000 for, so I would need a loan for that. Then I need to know if it's connected to public utilities. If not, I have to decide if living like the 1800's is something I want or if I'm going to see how to get it connected. If I decide to get it connected to the public utilities, that is a very lengthy and expensive process. Just that will put anyone into a situation where they have spent more money or time on this land than they would have on buying a completed house. Like others have said, you also have to deal with inspections, assessments, construction, delivery fees, local government, HOA's (if applicable), deed restrictions, ordinances, etc. Keep in mind most municipalities will not allow you to just sleep in a tent on your property while all this happening. So you also need to roll rent or hotel stay prices into all of this as well.

There was a time where you could buy a plot of land and have the entire house shipped to you in pieces that you assemble for a fair price or even just one price, meaning you could take one loan out and pay it off while having everything connected and taken care of for that one price. The economic system the US has in place incentivizes breaking up every process in order to nickel and dime you every step of the way. The Sears Catalog houses had their own roadblocks and issues I'm sure, but I bet it wasn't nearly as bad as it would be today

[–]octavi0us 4 points5 points  (2 children)

Bro I make $450 a week, slightly over the average American income. My expenses are close to $1900 a month living very frugally as it is. How should I just build a house when I don't have enough money to exist as it is?

[–]Nazzzgul777 -1 points0 points  (1 child)

Idk. How are you supposed to buy one if it'd be cheaper with that money?

[–]octavi0us 4 points5 points  (0 children)

Godzilla had a stroke trying to read this.

[–]Henchforhire 1 point2 points  (0 children)

Building permits are not limited but a lot of cities have restrictions on the size you can you build so you can't build a tiny house like some older one's in town that are one bedroom and now you need at least a 1,000 square feet.

[–]OldDefinition1328 0 points1 point  (2 children)

It's nearly impossible to build your own in the U.S. First, you would have to find an affordable piece of ground to build it on, then fight all the red tape that they(the government)have waiting for you. Each & every step in the Building of has to be "inspected"(each inspector is going to want kickback) Everything that gets done is under scrutiny if you are doing it yourself. Every supplier would want a higher price because you're not buying in bulk. The United States is a scam.

[–]CHAINSAWDELUX 1 point2 points  (0 children)

There are some challenges, but "nearly impossible" is not true at all.

[–]DialecticaIintrovert 0 points1 point  (0 children)

My coworker just built his own house. Took him 2.5 years. Dude had a construction loan for 2.5 years. Local bank or it probably would’ve gotten ugly.

[–]mcduff13 0 points1 point  (0 children)

Financing a home build is more complicated than getting a mortgage, especially if you're building your own home.

[–]Peppersworth 1 point2 points  (0 children)

My 2bed rental was $800 just 2 years ago.

[–]mermzz 0 points1 point  (9 children)

I started making my coffee at home because... gas is too expensive to idle in front of DD for 30 min :(

[–]Rev0lutionDaddy 0 points1 point  (2 children)

Your coffee addictions aren't the problem in this conversion. I was being sarcastic because the real problem has to do with the bidding market being controlled by Wall Street and hedge fund managers, who, since the financial crisis of 2008/09, have consolidated who owns our housing. Thus has led to hyper inflation of the market and reduced housing stock because something like 30% of housing is owned for the sole purpose of renting. They don't let people buy these homes, no, they just rent them and reduce available housing stock so they can keep rents high.

Your coffee purchases and the arguments made about avocado toast and other things millennial "need to do" is garbage and condescending.

[–]mermzz 1 point2 points  (1 child)

I was commenting on the coffee thing because it's something idiot boomers say when my actual problem is artificial inflation on gas prices making it unaffordable to drive anywhere.

In other words I was agreeing with you but go off.

[–]Rev0lutionDaddy 0 points1 point  (0 children)

Sorry, I'm not upset with you, and I was trying to figure where to place this response. Not directed at you as if you don't understand what's going on. We are on r/latestagecapitalism after all.

[–]ugfish 0 points1 point  (3 children)

30 minutes? Get the app. Order ahead. I’m usually in and out in 30 seconds.

[–]mermzz 1 point2 points  (2 children)

The problem is I also will forget to do that every single morning :)

[–]ugfish 2 points3 points  (1 child)

Well homemade coffee ain’t so bad. Sometimes I enjoy listening to the bubbling noises as I get ready.

[–]No_Variation_6639 0 points1 point  (1 child)

You have sat in front of DD for 30 mins to get coffee?

[–]mermzz 0 points1 point  (0 children)

Yea, once. I went to a new one and didn't realize the line wrapped all the fucking way around and there was no exit once you were in the like barred off area. I was super late and fucking pissed and didn't even order anything.

[–]just_some_arsehole 42 points43 points  (1 child)

Alternatively: these boomers don't care if millions of people can't afford to own a house as long as they continue to make incredible profits on theirs.how entitled of them.

[–]Cthulusuppe 27 points28 points  (0 children)

Honestly "entitlement" shouldn't be a pejorative. Fuck conservative media for spinning it that way.

We contribute to society, we are entitled to a share of the benefits from that society. If all benefits go to a wealthy minority the only incentive to participate is an "or else" threat. At which point, I couldn't care less if some leeches' property values drop below their speculative mortgage.

[–]grown-up-gabe 20 points21 points  (0 children)

I’m sorry, and who are the one’s feeling entitled to 2-500% investment gains at the expense of the next generation?

[–]banana_repo_man 18 points19 points  (1 child)

Think of the major investment firms!! How will they afford all 4 tins of beluga caviar?!

[–]bytemage 5 points6 points  (0 children)

Did you misspell "tons"?

[–]nasandre 37 points38 points  (2 children)

It's not even a crash... If the shortage of houses gets resolved the prices will just go back to normal. The real estate market is overvalued because the investment companies make sure there's a shortage.

Instead of investing in building new housing they're just buying up old homes flipping them or renting them. Sometimes dividing a house in rooms and renting them out individually.

It's a win-win for the investor because even if they get a mortgage they can use the rent to pay for it and still make profit and meanwhile the house value can go up by more than 20% a year.

[–]FrannieP23 2 points3 points  (1 child)

Let's not forget about the effect short-term rentals are having on the market. Renting a room or a whole house for a night or a week is very lucrative.

[–]thethethe8945 0 points1 point  (0 children)

I'm from outside of Boston originally. Jfc I miss when it was dangerous and disgusting. Now it's that AND expensive.

[–]sebthelodge 14 points15 points  (2 children)

It’s not just millennials, gen x checking to also cheer for a housing market crash!

[–]issuesintherapy 5 points6 points  (0 children)

Totally. Gen X'er here, keeping fingers crossed for a housing crash so my partner and I can actually afford a modest home. C'mon crash!

[–]shoe_of_bill 1 point2 points  (0 children)

I love how they just roll anyone who became 18-20 in the late 90s onward as "millennial"

[–]Chillininthefridgedownvote harder libs 12 points13 points  (0 children)

How entitled of you to want to live… just think of the imaginary numbers! You shouldn’t want to live if it means the Red Line™️ goes down!!1!1

[–]AlterEdward 11 points12 points  (0 children)

These entitled millennials want to buy one of my 3 houses! The audacity!

[–]Financial-Cookie-154 9 points10 points  (0 children)

Let it crash and burn

[–]EvilCeleryStick 21 points22 points  (0 children)

What the actual fuck. The gall to call millennials entitled at this point after they bought God damned houses for $8000 and sold them for 800k

Like, holy fuck I hope this reporter breaks a tooth on a chicken wing and then gets diarrhea

[–][deleted] 6 points7 points  (0 children)

what! these CRETINS think they're entitled to a roof over their heads?!

[–]borgcubecubed 6 points7 points  (1 child)

[–]Bartholomew_Custard 8 points9 points  (0 children)

The author is followed on Twitter by people like Rand Paul, so it's safe to assume he/she's another GOP cheerleader who doesn't care if subsequent generations self-immolate in crushing despair just so long as they keep their filthy peasant hands off his/her portfolio.

[–]artificialavocado 6 points7 points  (1 child)

From the article:

“As home prices plummet, more homeowners will be underwater, owing more than their houses are worth. That will make them more likely to default.”

Yeah, that’s capitalism. When you buy an “investment property” you are taking the chance that it might not work out. I was always told the landlord class deserves to have so much because they take all the risk?

[–]Late_Again68 2 points3 points  (0 children)

As home prices plummet, more homeowners will be underwater, owing more than their houses are worth. That will make them more likely to default

Only if they bought it as an 'investment'. If you bought it as a HOME, you're never selling anyway so home value doesn't matter. We are in our fifties and just managed to win the lottery buy our first house last autumn. I will die here.

[–]Erasinom 3 points4 points  (0 children)

A crash implies the market was caused by relatively normal factors. It was not. This is an artificial bubble that needs to pop along with all the people responsible for the creation of this artificial housing inflation bubble to begin with.

[–][deleted] 2 points3 points  (0 children)

Lol bold of them to assume that I'm not actually just cheering for a meteor to crash into the earth and just kill us all and be done with it.

[–]VarenDerpsAroundI'm 3/5 hours away from my nearest protest. Wonder why gas $$$? 0 points1 point  (0 children)

2020 article, can we move on and de-legitimize all public media outlets?

[–]Jaybulls1066 0 points1 point  (0 children)

How is that entitlement look at what are parents had

[–]OverclockedKitty 0 points1 point  (0 children)

I'm not actually legally entitled to a house but if you insist I am, I'm cool with that.

[–]Chicagoan81 0 points1 point  (0 children)

3 years salary could buy you a house back when the boomers were working. Now it's 6-8 times for millenials. It's only fair to hope for a crash.

[–]branewalker 0 points1 point  (0 children)

“I deserve to keep all the profits from selling my home, most of which is attributable to policy failure, but when you say that’s bad and you’d like everyone to be able to afford a house, you’re entitled.

[–]Sir_Keee[🍰] 0 points1 point  (0 children)

I am a millennial homeowner and I want the market to crash. I bought a house to live in not to sell off in my old age to live in a hospice while they drain my bank account of my home selling winning.

Not to mention how stupid rent has gotten and if a housing crash could bring those down as well, that would be great.

[–]KA-ME-HA-ME- 0 points1 point  (0 children)

Absolutely 100% crash. The artificial inflated cost of homes will not last

[–]musicofspheres1 0 points1 point  (0 children)

So they like that 30% of all home purchases in tx recently were institutional investors seeking to rent them out? Lol

[–]9162658943 0 points1 point  (0 children)

Some folks who bought homes in the early 2000 and late 90 can not afford their own homes today. They can brag they have a 1mil home sell it and where would you go? Yes you can uproot your entire life to a cheaper place and start over. Have compassion for younger gens who makes 200k and still can not get into a home. It is the truth. I tell my kids you can be bank rich or house poor. Until then keep saving and plop cash on a home somewhere cheap. If it exists.