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Subject Expert
Just because you can’t afford housing in a HCOL city doesn’t mean there’s a crisis.
Rent prices are dropping in many medium and low COL cities. And housing prices have dropped over the last 2 years across the US.
It is a crisis if you don’t own a home and a crisis if you do.
Buy a starter condo like the rest of us had to. After 5-7 years, of appreciation and equity building, buy your forever home
I have a friend who makes $65k, and last year she decided she wanted to buy a condo. She she bought a $220k condo and is living within her means. She’s adding hundreds of dollars in equity every month. A house will be within her reach in a few years, like it is for everyone
Mentor
Look to places that don’t have this problem. I can buy an apartment in South America for 40k, it would be 400k+ here. They incentivize builders heavily. It creates a ton of affordable apartments and competition. The interest rates are 15%+ so more buyers come with cash, large down payments. 15% sounds awful, but a paid off apartment is very common there. Their house inflation is pretty stable around 5%. Overall their housing market is stable. They have other issues, but housing is not one of them. You’d be very surprised what you get for 40k, granite/quartz, nice tile, stylish cabinets, terrace with a view, 3bdrm, 2ba, ac.
Mentor
I have houses down there and here. It’s not what you’re thinking. My only barrier is stable employment from there. The safety, housing, medical, healthy food, living conditions, weather are all better there. Jobs are worse. I’d take a 75% pay cut for the same skills. There are areas like Detroit and Oakland in every country.
Crisis? Define crisis. I see exactly the opposite in my area.
Short answer - yes, because BlackRock, Blackstone, single family rental-focused PE shops, etc. are drastically cutting into the available housing supply. And it’s not creating a bubble because it’s backed by good capital. But it is driving up home prices and pricing large amounts of lower and middle class folks out of the market for home ownership.
Subject Expert
How many houses do you think these investment groups are buying? It’s a lot lower than you probably think.