Posted on 08/03/2025 7:18:15 AM PDT by Angelino97
Yep. Deport the illegals and the housing crisis goes away. Maybe bAss and Newscum can give the Pacific Palisades land back to it’s rightful owners to rebuild without all the fees they used to drive them out and make way for government tenements.
Zillow overstates values in their algorithms and then blames the high prices?
If housing were “affordable”, who do you think will live in such neighborhoods?
That’s why the concept of the “Fixer Upper” has gone the way of the Dodo Bird.
Even though people can get higher prices for their home, no one wants to sell. Why give up a 3% interest rate for an 8% rate for a more expensive home?
People will stay put and therefore less supply and more demand will keep prices up.
Once interest rates fall back to under 5% housing will boom again. JMHO
I built my home in 1985, total house payment was 499 including taxes and insurance . My property taxes alone are nearly that
When bought I was making 10.09, when I retired I was making 38 and doubt I could afford to buy my own home, also bought a new ford escort that year for 5k
New York City’s housing problem is a government created supply problem.
Rent control laws restrain supply in two ways. First, the various rent control/rent stabilization regulations grandfather their incumbent residents in protected rent statuses effectively removed from open market conditions. Together they comprise some 700,000 housing units that are not part of the open market. It’s a great system for the 700,000 holding onto those rental units, but for anyone needing a rental unit, that’s 700,000 units that are not part of the available “rental market”. The supply is made lower by government control.
Then you have what the rent control/rent stabilization laws cost landlords - by how their ability to set rents if restricted. There are reports that there are tens of thousands of the rent control/rent stabilization units that are vacant, by choice of the landlord, because the restrictions on rents mean they will not recoup the cost of repairs, so they leave the unit vacant. There are thousands upon thousands of rental buildings that defaulted to city ownership as the landlord owners just gave up, losing the battle between costs, property taxes and city regulated rents.
So any new apartment seeker in New York is paying a premium, because the supply has been restricted by government action, making the “market” available units at least one million lower than what they ought to be. Rent stabilized units do come back on the open market when the rent stabilized tenant leaves. I know an incumbent tenant in a two bedroom rent stabilized unit who still pays below $2,000, but a newcomer renting a newly vacant unit is paying $6,000.
Why? Zillow is one reason.
Here in California we have property taxes and parcel taxes.
Property taxes are assessed on the home's market value at time of sale, but then frozen to a 1% increase per year by Prop 13. (Until the next time the home is sold.)
Parcel taxes are assessed according to the lot's square footage, irrespective of the value of the parcel or what's on it.
Parcel taxes are a one-time tax that are voted on every election. Because tenants on rent control don't pay the tax, and because the tax is always "for the schools, for health care, to fight crime, etc." parcel taxes are almost always voted in.
So property owners can almost always expect to pay a few hundred dollars every year for the parcel tax, in addition to their property tax.
I have this conversation frequently with friends who see a home sell in their area for $800,000 and wonder how the hell someone can afford to: (1) save up $160,000 for a down payment, (2) pay more than $4,000 per month on a 30-year fixed rate mortgage at 6.5%, and (3) pay all the other costs of home ownership on top of that.
I point out to them that the vast majority of those $800,000 homes aren't being bought by first-time home buyers. Factors (1) and (2) don't come into play because the buyer is selling a $450,000 home that has $350,000 of equity in it after they've owned it for 10+ years. So they're making a $350,000 down payment on the $800,000 home, which means their mortgage payment is less than $2,900 per month ... which also means their monthly mortgage payment on this 4-bedroom home is at least $600 less than what they'd be paying in rent for a 2-bedroom "luxury apartment" in a complex that was just built six months ago.
also, for the first time in human history, people can live to be over 100 years old with our our great medical care. People aren’t letting go of their homes. 2 generations are waiting for the houses to turn over like when you wait at a restaurant for a table when people are taking 3 hours to eat.
Abolish public employee unions and most of the problem would go away.
In many case doesn't matter if they did want to sell. Try to "buy up" out west in the same area you're selling. Can't do it because everything else when sky high as well. It's a no go. The only thing people can do is move to where the housing is cheap....Ohio, Alabama etc....
100%
It’s why they keep increasing property taxes....Did you ever notice the most opulent, expensive buildings in most cities are the city halls where all the bureaucrats work?
I’ve been through many towns where the whole town looks like sh*t but the civic center/city hall looks very upscale...It’s outrageous!
Is this the same arsehole who nearly bankrupted Zillow by buying properties and then flipping them? Tens of thousands of houses? Each time they didn’t make their quota this moron upped the quota.
If so, discard everything he says.
Bring in tens of millions of foreign people in a short period as Leftists did and you will obviously have a BIG shortage of housing.
“Property taxes are assessed on the home’s market value at time of sale, but then frozen to a 1% increase per year by Prop 13. (Until the next time the home is sold.)”
THAT makes property taxes in California the most unfair of all. House one has had one owner for twenty years and it is 100% exactly like house two just three doors down that was just sold. The new owners in house two are going to pay many times more in property taxes than the owner of house one - FOR EXACTLY THE SAME HOUSE IN THE SAME NEIGHBORHOOD. That’s insane.
Even when someone in California could afford to sell their house, they don’t, because they know they would be the ones on their new street paying the highest taxes.
The prop13 1% deal created grandfathered in residential incumbents, protected by prop13, leaving new buyers to get hit with the higher taxes, levied to make up for the prop13 1% restriction.
It was an economically stupid law.
“There’s lots of building going on in my area. All 3 bedroom+ houses starting at $350k. No apartment houses, or at least, very few of them. And people are desperate for rentals.”
They’re covering up my once quiet town with apartments that are being filled up with coastal refugees.
You bet. It’s actually hard to believe the taxpayers ever allowed these government parasites to unionize.
It’s how the “public servants” became the masters.
Insane!
Agreed. 100% is a little extreme.
But the #1 problem is the NIMBY rules “The market must be controlled” nature of our society. Condo fees went up in my Condo Assn....why? Because state and local government passed numerous regulations and requirements to “protect the stupid citizens” and coincidentally give bureaucrats more power to tell me when to “jump”.
Wood is a major factor. Government micromanages what tree can be cut when....and with a multi-year timeline. The cost of money on hold over time while government takes years to make a decision is a major factor in cost.
RE: Zillow overstates values in their algorithms and then blames the high prices?
1. Do buyers and sellers use Zillow as a rule book, or can it be ignored altogether?
2. How do you know that Zillow is overstating values? In my area ( Long Island), most homes sell for MORE than the Zillow estimate. Maybe the algorithms are really reflecting average market prices.
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