Venting here... Been working for 8 years now, always wanted to move to California. I remember in 2012/2013 finding really nice homes for ~$1M. The same caliber homes are $4M+. I've more than doubled my salary since I started but it feels like nice homes are getting further away. I'm not sure there any many salaries anywhere that can buy $4M homes. How is this rational?

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It isn't rational at all.

The US (and many other developed countries) has let their housing markets run loose on ultra cheap debt.

The American Dream is cannibalizing itself.

likehelpfulsmart

Most people unfortunately don’t have rich parents / trust funds; aren’t useless social media millionaires; aren’t politicians who’ve miraculously gotten rich off their trading acumen; aren’t sh*tcoin millionaires

But hey, if you work hard you can have everything you want here!

funnylike

This is true all across USA.

2012/2013 the market was just picking up from the recession and there were reasonably priced homes in most cities.

But since then the market has been on a sugar high of low interest rates especially the last couple years.

I myself have quadrupled my salary but cant afford a good home in SoCal unless I goto distant suburbs. Without striking a crypto jackpot or something most of these areas are out of reach for even upper middle class.

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Years of not enough home construction and an economy gorged on low interest debt thanks to irresponsible government policy… so here we are.

But to also be that guy: vote with your feet. You don’t have to live in an eponymous Californian HCOL city. $1M could get you a castle in my city.

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I’m in Atlanta, but we’re rapidly becoming MCOL. Still a ton of great options though!

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What kind of home you folks are looking that cost $4M? A mansion?

likefunny

I live in socal in one of the nicest suburbs north of Los Angeles along the 101 near Calabasas, and while it’s true home prices have doubled over the last 7 years or so, there are plenty of very nice options in the 1.2M - 1.5M range. You could grab a 4000 sq foot house on top of the hill and spend $4M, but that’s totally unnecessary.

I live in a 4bd / 2 ba house with a pool, hot tub, outdoor kitchen, and an enclosed courtyard that would probably sell for 1.3M today.

It’s only right along the coast (Manhattan Beach, Redondo, Hermosa, Santa Monica, etc) where you’d have to pay 4M for a tiny house, and like 10M - 20M for the larger homes. Inland toward UCLA (Brentwood, Bev Hills, etc) is also a bit pricey - you could spend 3M -4M over there no problem.

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Sacramento is basically the same RE cost as Chicago

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Live in LA, and bought at the end of 2012 for just under $2m. It’s worth a bit over $3 now. It’s a lot - but our house has also appreciated more than almost anyone we know in that time. At most, things have doubled, including in areas like Manhattan Beach, BH, etc. Youre either looking at things that were tear downs then and have been totally gut remodeled, or arent actually paying attention to the numbers. Yes - it’s expensive. No, it hasn’t gone up nearly the way you are describing (and my husband works in RE - so this is a fairly informed statement)

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(Mine was about $250, husband 450)

helpful

Stuff in LA has at least tripled since then that’s for sure

Suburbs still have <$1m homes, if you like that lifestyle. There is a CA exodus to AZ for this reason.

Hey Deloitte2 - “Learn to swim, Learn to Swim, Learn to swim”

If that rubs you the wrong way, suggest you stick it through the inter webs search engine…. 🤣

helpful

With the lowering of fertility rates, eventually there may be some housing relief. However, the housing crisis is mostly centralized to specific areas as people move south and towards the coast and leaving the Midwest.

I feel your pain. In 2020 I also doubled my salary well into the 6 figures. Was thinking yes finally I can afford all these things. Meanwhile I can’t even get a car let alone a house. The timing of everything is brutal. If I was this “rich” 6 years ago I’d have all these things and even be able to find a Submariner as a cherry on top. It’s just a waiting game hoping btc and eth let me by a house (the prices of things in USD shows inflation, pricing them in BTC/ETH show deflation)

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