Posted on 08/16/2024 7:50:07 AM PDT by fwdude
The numbers: Construction of new homes fell 6.8% in July compared with the previous month, as builders scaled back new projects.
Housing starts fell to a 1.24 million annual pace from 1.33 million in June, the government said Friday. That’s how many houses would be built over an entire year if construction were to continue at the same rate each month as in July.
The data fell short of Wall Street’s expectations of a 1.34 million pace. All numbers are seasonally adjusted.
Housing starts fell to the lowest level since May 2020. Outside of the pandemic, new-home construction was at its lowest level since March 2019.
(Excerpt) Read more at marketwatch.com ...
I am a lumber broker. So, I tend to be well informed on housing starts/permits nationally and regionally based on the reports my company subscribes to. In addition, I have customers across the country giving me and my associates feedback on their current business.
All that being said, my customers are telling me that single family home construction is still very good. They are also telling me there is no apartment construction.
I AM NOT A REAL ESTATE EXPERT.
Purchasing a new home is tough because many can not afford the down payment. Even if they are double income.
In a lot of markets you will need to put down $100K or more to afford to buy a home.
Renting is unaffordable in most major cities around the country. As an example, my son is 26. He makes right around $100K. He works about 40 miles NW of Boston. He is single.
He shares a town house with another young man. His portion of the rent is $1200/month. IF he rented a one bedroom apartment it would be $1700/month. In Boston a one bedroom apartment is over $2000/month. A two bedroom apartment is over $3000/month.
The issue with most Boomers downsizing is that the smaller house/condo sometimes costs about the same amount that their larger single family home is worth. So, why should you sell?
Unless you can no longer maintain the property. I do not know the tax implications. Ask a CPA.
Your last question is a lifestyle choice. Some people CHOOSE to drive longer to work because they can afford a nicer house in the suburbs or country. The closer you are to Boston, the suburbs tend to be more expensive. Brookline, MA or Sudbury tend to be more expensive than suburbs farther away from the city.
This is becoming less of an issue for a lot of people who work over the internet. The neighbors on either side of me and my daughter all work from home. They log onto the VPN on the internet and do their job sitting on their couch in their jammies. At least my daughter does. They literally could live anywhere in the country with high speed internet. Maybe the world.
This has had a major effect on real estate in more rural areas of the country ever since Covid-19. People were allowed to work from home. So, if there is no reason to dive into LA, why live within commuting distance. Why not move to the mountains or some other place far away.
Tucker Carlson does his podcast from a small town in western Maine. The closest bigger town is Bethel, ME. Which is the home of Sunday River Ski Area. Joe Rogan does his podcast from Austin, TX. These two shows are the largest viewed podcasts in the world. Yet, neither one is done from LA or NYC. Ten years ago this would have been unheard of. Now it is commonplace.
As I mentioned earlier, I am a straight commission lumber broker. I sit on a trading floor with others around me doing the same thing. However, there are people who do my job from their house. In the spare bedroom or den. If I do that, I will not have to commute. Then I may decide to live elsewhere.
How old was the house? Just curious, and is anyplace in Florida far from a beach? We’re in NW Jersey and it’s about an hour and a half for us, no direct route from here.
Houses were built in the 60s. I can bike to the beach in a half hour. You can’t find 3/2 anymore and with everyone trying to dump their condos, houses have a list for buyers.
Wow. $500k for a house that’s about 75 - 80 years old, not a large house and on a relatively small lot, and not ocean front, and miles away from the beach. With so much coastline, I have to believe Florida has thousands upon thousands of similar homes. Well, I guess I can forget about spending the rest of my retirement years there. Wouldn’t be worth the move. Unless taxes are very low, maybe then.
My taxes are 2100. They’ve built out from the ocean to the glades. Any available land is bought up for apartments. Condos took a big hit when the towers fell in Surfside couple of years ago. With the new requirements HOA fee have doubled if not triple. Insurance is high for the building and you still have to have insurance on the dwelling. Everyone wants a house now, but no one is selling......drives the prices up.
New people come in and completely gut the house and remodel.
Our taxes are about $8,500 in NW Jersey on 2 1/4 acres. Minimum lot here in Kingwood Twnshp. is now 4 acres. Our taxes are relatively low for Jersey, no police dept, volunteer fire dept, no sewers, well water. Could sell for 600k, would be low ball I’m told. But I don’t think we could get anything like what we already have anywhere close to civilization. Somewhere in Montana or Alaska maybe, but I’m already tired of winters. Oh well, I should stop dreaming and be satisfied with what we have which isn’t to bad, just expensive, like everywhere else now.
Problem we’re going to have here is running out of water. Condos and apartment buildings use 3X the usage on single family home. I’m looking to get up north in the Ocala area as I’ve already found a house in like. Nice 3/2/2 on 12000 sq.ft. lot. Houses are spaced nicely and it’s on a Cul de sac.
Good luck. It’s not getting much easier, go for it.
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