Not owning a home will be the next gen’s motivation: get to the white house and have a house for 4-8 years (tongue-in-cheek, kinda).
Something is wrong here? Permits are based on project cost. https://homeguide.com/costs/building-permit-cost
Most young people don't want to own anything anymore. I mean, even the art is digital with NFTs. They are paying 6 and 7 figures for pixelated avatars. "You will own nothing and you will be happy"
Building permits, yes, System Development Charges, no. SDCs are a huge chunk of the total permit costs and are typically a flat rate per unit. Parks, transportation, sewer, water, storm sewer, schools all get a bite out of your butt when you build these days, and they add tens of thousands of dollars to the cost of a home.
2500 sq ft. My point in all of this is, this leftist govt expects affordable housing but how am I supposed to make money with permits that cost 120k. 2500 sq ft house that costs 420k just for the following (before even breaking ground) Initial Land - ~200k Permits - ~120k Lumber package - ~100k Its ridiculous. Do not think that this house can be sold for under 1 Million dollars
In March 2021, the median house price was $326,350 and the interest rate on a 30-yr mortgage was 3.10%. Assuming 20% down, the monthly payment, excluding taxes and property insurance, was $1,115/month. Today, the same house costs $375,300, or 15% more, and the interest on the same 30-yr mortgage is 5.00%, 61.3% more. As a result, the new mortgage payment is $1,612/month, an increase of $497/month! The priced-out phenomenon is real. 50k increase in a year isn't very good. We were going to list for 400k in 2020 and we ended up selling for 540 two years later. Bought the house for 273k in 2015.
The fact that you think 50K increase isn't very good goes to show how overpriced the market is. I doubt you will ever see those types of increases again.
I'm already getting notifications that houses are dropping their initial list by 15-20k. People were upping their prices 10-20k every few weeks. If the house down the street listed for $600 and it went pending immediately, the next house would list for $610 or $620.... and they'd get it. It was bonkers. I don't think the bubble is going to burst because there's still so much demand. The inventory is still well below the demand. You can't have a bubble if there's still people who are willing to pay... and these are qualified buyers. I think buying a house is just going to be out of reach for some people. Period. It sucks and I was extremely lucky to get in when we did back in 2015 right when the market was turning. It's so hard for anyone who doesn't have 20% sitting around to get into a house.
