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It’s why I just left Boston. I’m 27 and my wife and I combined make over 200k, still priced out for the foreseeable future from any good houses. Bought a 4 bedroom 3 bath house for under 500k that is a 10 minute drive from another major city.
What city - need suggestions lol
We need to build more housing goddamnit
Both, any, all
This is everywhere. A lot of places it’s not people but private equity driving up the prices.
To those that are saying the housing prices have to hit a ceiling... look at what has happened in some of the housing markets in Canada, like Toronto and Vancouver. 10 years of waiting, a pandemic and recession, and economists constantly talking about how “the housing market bubble will burst” and here we still are with very expensive housing and no ceiling yet hit. It slows down, but a single family home is still +$1 mil minimum in both markets (to be within 1.5 hours of the city), and if you’re not familiar with Canadian Big4 salaries - look it up for a good laugh.
Don’t wait for the ceiling lol - and don’t hold your breath for the firm to match salaries with inflation.
Not us lol. Families with double income making over 200k, older families who also sell their houses for $1 million, foreign investors. Toronto isn’t much different in terms of demographic from other major cities, you’ve still got a lot of people with high paying jobs who can afford it. You also have a cap on supply - cities are focused on intensification (condos, apartments) not single family housing. Vancouver historically has a lot more foreign investment (even with big tax implications introduced for foreign investors).
I don’t know many people who have bought property in Toronto that didn’t have significant help from their families. You can’t get a mortgage for a single family home unless you have significant savings and high income, which is hard with our salaries.
Granted Canadian and American markets don’t always act the same. All that is to say, don’t expect the market to top out ... you’d think there’s a ceiling, but it’s likely way higher than you’d expect.
I wouldn’t buy in Boston. Seriously consider buying cashflow properties in other markets to pay your lease in Boston. Boston is rental market, you can rent a house cheaper than putting mortgage on it and making monthly payments. Find a market that’s a buyers market (v renters market) and buy 2, 3, 4 properties- you can pay cash outright for what a Boston down payment would be. 3, $100,000 homes in Memphis should throw $1,000 each and cover whatever want in Boston.
I hear you OP. But also, it’s 2012 somewhere.
Maybe not in Boston, but somewhere.
Maybe it’s 2012 in Portsmouth, NH?
If what you say is true it'll get to the point where people in our profession won't be able to buy a home till they are MD or partner. Let's take my example further into 8 years from now. What is a 3 bed 1.5 bath house in Woburn going to cost 900k-1mil in 8 years? Are there that many people with jobs that pay well enough to afford these houses? This isn't even in the city. These are people who take commuter rails/ express buses into work. Point is house prices in this area are increasing much faster than salaries and eventually it will hit a ceiling - it's just a matter of how long before it happens.
I think the point is more we have a good career and hard to buy a house so how could more blue collar jobs that may be lower paid afford housing
Home prices have to hit a ceiling right? In 4 years from now home prices can't increase another 30%. Whose going to be able to afford these houses?
That’s a good question. Unless you increase supply or there’s an external demand shock, prices won’t come down.
They will go up. I promise, these price have not hit the ceiling. There is always influx of new people with well paying jobs. The FED printing money like crazy doesn't help as well.
Or you finance over 30 years. Look, there never was a real ceiling for real estate in the long run.
Yes I don't know anyone buying a house in cash for 600k now so you would have to finance over 20 to 30 years. You still have to get pre approved and make a certain amount to get that pre approval. If house prices continue to go up 30% on average every 4 years with salary increases not even coming close to that eventually it'll come to a point where people can't afford houses. Let's take my example further into 20 years. What are you going to get pre approved to finance that 3 bed 1.5 bath house in Woburn for 1.6 mil? That's what contributed to the market crash in 2008 - people getting approved for houses they couldn't afford.
It’s happened in London there’s no ceiling. Average salary in London is £30k across all professions so I’m willing to bet consultants/bankers/lawyers drive that up. Average house is c.450k and our mortgages are 4-5x on average. It’s pretty brutal here
Also that 450 is for a shitty shitty place in a nice area or a meh place in a shitty area
Actually really and truly mortgages are often 3-4.5 you can get 4.5-5.5 if you’re in a stable professional job (lawyer, accountant, architect) and are young
You have me seeing double because I swear I just saw this exact post on the Boston subreddit. I think you’re going to suburb prices continue to rise. Especially w COVID. Our house is up 70k in 2 years. It’s wild. Boston didn’t feel the effects of the last crash. It more just steadied the market but it never dropped. MA is thriving as a state so it is a place everyone wants to live.