I see charts from the 1960’s – 2000 showing wages keeping up with the cost of housing. Then there’s a huge boom in housing cost. What factors caused the price to jump so high? Is it only the low interest rates, or did something else happen?
For example: [https://imgur.com/a/8HWIlqx](https://imgur.com/a/8HWIlqx)
Edit:
This guys just uploaded a video today answering the question I posted. He says a lot of the same things that you guys said too[https://www.youtube.com/watch?v=eL9DBjfhWAE](https://www.youtube.com/watch?v=eL9DBjfhWAE)
In: 50
/u/97zx6r gave a couple of really good reasons. Here are a couple more:
– NIMBYism and zoning – people who bought before don’t want new construction near them, and therefore block it in local politics. Zoning forbids all kinds of housing that used to be able to be built, but can’t now due to the local laws.
– McMansionism – developers buy a plot of land and naturally want the best return they can get on their money. So do they build affordable starter homes? Of course not, they build McMansions. In denser areas, do they build affordable apartments? Of course not, they build ‘luxury’ condos.
So basically, there’s no incentive to build affordable housing, and even if there was, it would be illegal in most places due to zoning.
That means that what little housing is available can appreciate at stupendous rates. According to my mortgage company, my house’s value went up 39% in the year and a half since I bought it. Nice for me, but that’s ridiculous, and a real punch in the face for anyone who hasn’t bought yet.
Latest Answers