WSJ Report on the radio this morning commented about the decline in new construction. They said that the Gen Xers are in the home market now and they are also carrying 70% of the debt load the boomers are carrying, but are only at the beginning of their careers. The builders have been catering to the McMansion crowd and have neglected the needs of the Gen Xers, which is estimated to be 50% of the new home market. They need homes, but McMansions aren't in their range of affordability.
bump
Entry level and median home price buyers have been thrown under the bus by developers here in Seattle. Every condo or housing project going on right now is 500K+ starting price. The only prices less than that are apartment conversions to condos which are a total joke. The salaries in this city can no way justify the market we have now. Its becoming a market based solely on speculative investment/2nd home buyers and flippers.
Big part of the population have been completely priced out of the market or have to go live out in the middle of nowhere.
I am a little surprised that no one has made the observation that homes are not what they were 10 - 20 years ago, making comparisons meaningless.
Houses now tend to be bigger and have more luxury features than in the past.
A typical house 20 years ago was probably a plain, 1700 sqft box on a 50' x 100' lot.
Today, new houses start at 3,500 sqft. The older houses have had additions, new kitchens and baths.
IMO a substantial percentage of the increase in house prices can be traced to "home improvement".
I'm a boomer, but I'd also prefer 1500 sq. ft. on 2 acres to 2500 sq. ft. on an 80 X 120 foot postage stamp lot.