Total wealth since 1989

[lawdog77]

I had lunch in New Buffalo today.   Admiring all of the (formerly) million dollar summer condos.    The money, the contactors, the materials for so many years went to that.   

Yes, there is a lack of affordable starter homes.   While these expensive condos sit empty 10 months out of the year.

When you take into consideration land prices, labor costs, permit costs, material costs, most builders cannot afford to build "starter homes"

[tower912]

I have read that from time to time.  And then I read about innovative new techniques, materials, layouts that allow them to.

[Pakuni]

When you take into consideration land prices, labor costs, permit costs, material costs, most builders cannot afford to build "starter homes"

And very few municipal governing boards, especially in decent suburbs, will allow them. You'd be hard-pressed to find any towns allowing new construction, single-family homes on anything less than 10,000 square feet. Many, it not most, require a quarter-acre.

[Goose]

TAMU

I would recommend to ANY new, first time home buyer to wait things out. This housing market defies logic and I believe when the dust settles home prices are going to retreat a great deal. My point on my last post was simple, I do not have any idea why a 30 something year old did not purchase a home prior to the insane run up over the past two years. I get the struggles today, but in 2018-19 buying a home was very affordable.

[rocket surgeon]

TAMU

I would recommend to ANY new, first time home buyer to wait things out. This housing market defies logic and I believe when the dust settles home prices are going to retreat a great deal. My point on my last post was simple, I do not have any idea why a 30 something year old did not purchase a home prior to the insane run up over the past two years. I get the struggles today, but in 2018-19 buying a home was very affordable.

   right on gooser!  why anyone would not have locked into a $300-500k mortgage at 2.something % is beyond me as well.  my youngest son bought a small "fixer up'er" lake house in 2019, remodeled it a little bit and is now renting it out while moving into his fiance' condo,  talk about tag teaming it

[MU82]

TAMU

I would recommend to ANY new, first time home buyer to wait things out. This housing market defies logic and I believe when the dust settles home prices are going to retreat a great deal. My point on my last post was simple, I do not have any idea why a 30 something year old did not purchase a home prior to the insane run up over the past two years. I get the struggles today, but in 2018-19 buying a home was very affordable.

OK, let's say you're right that somebody should have bought in 2018-19. But maybe that somebody: simply didn't have the money for a down payment then; or was trying to build a margin of safety in his/her cash emergency fund before buying a house; or that the person faced an adverse employment situation; or was trying to pay off the last of her/his  student loans before buying a house; or was shoring up his/her credit score; or any number of other things.

Regardless of why a family didn't buy a house in 2018-19, your analysis doesn't help them today. And that's what the issue is here. Nobody can go back in time, not even Al! (Though Al would have punched a house-seller in the face until he or she cut the price by 50%.)

[TAMU, Knower of Ball]

TAMU

I would recommend to ANY new, first time home buyer to wait things out. This housing market defies logic and I believe when the dust settles home prices are going to retreat a great deal. My point on my last post was simple, I do not have any idea why a 30 something year old did not purchase a home prior to the insane run up over the past two years. I get the struggles today, but in 2018-19 buying a home was very affordable.

Because a good chunk of the 30 somethings couldn't afford affordable houses in 2018-2019. A good but smaller chunk today still couldn't afford a home at 2018-2019 prices.

I'm banking on you being correct about the housing prices retreating. Hope we're right.

[Uncle Rico]

Because a good chunk of the 30 somethings couldn't afford affordable houses in 2018-2019. A good but smaller chunk today still couldn't afford a home at 2018-2019 prices.

I'm banking on you being correct about the housing prices retreating. Hope we're right.

Ask your dad to buy you a house

[TAMU, Knower of Ball]

   right on gooser!  why anyone would not have locked into a $300-500k mortgage at 2.something % is beyond me as well.  my youngest son bought a small "fixer up'er" lake house in 2019, remodeled it a little bit and is now renting it out while moving into his fiance' condo,  talk about tag teaming it

Bluntly, people like your son are part of the problem. Not that there is anything wrong with what he's doing, but there's been a rush on people buying starter homes and turning them into secondary (or primary) sources of income. This is anecdotal but I would estimate about 8 houses in every 10 sold in my old neighborhood was immediately back on the market as a rental property.

Again, to be clear, what your son did was smart and perfectly legal. But it does exacerbate the housing shortage.

[Hards Alumni]

First... HOW DARE YOU?! 

j/k, I'm going to really enjoy being middle age!   

Second, both of you and TAMU are putting words in my mouth.  I keep agreeing that there are more challenges right now, especially in the last year or two.  Again, I only jumped in because despite the challenges, home ownership is still a very viable option for many people and/or will be in the coming years.  Since home ownership is the largest driver of wealth, and the market will correct itself to balance things out, I'm not too concerned long term.  Just wait and see what happens when boomers start moving into nursing homes and/or dying off in bigger numbers.

All of that I 100% agree with.  I think the real thing to think about is how many boomers have two homes.  Eventually those will flood the market... and we will be able to purchase vacation homes in our 70s! 

[Goose]

82

I find it hard to believe that anyone that is a college grad and between the ages of 30-38 could not afford a home pre pandemic. Of course, there are exceptions, but many did not buy for non money related reasons imo.

I believe this the housing boom of the past two years is going to leave a lot of folks with buyers remorse if they bought during the run up. Imo, these prices are extremely out of line for the vast majority folks, not just young people. There is no way in hell that I would be home buyer at these prices, even if I were flush with money.

They say you buy a home to live in and not an investment and I agree with that. That being said, it is the biggest investment or purchase most of us ever make and I am very thankful I was not a buyer over past two years.

[Hards Alumni]

My original point, is that home ownership (one of the main paths to wealth) is still obtainable despite challenges.  I stated that b/c Hards went on a diatribe against dgies about how boomers got theirs and he didn't think millennials could.  I disagree with that, and buying a home is a way to do that.   You could have agreed with me, since we do agree on that, but instead you argued that it was tougher, which was the real straw man for my point.  But that's ok, because I agree with you anyway.  So we just kept circling in agreement I guess!   

ehhhhhhhhhhhhhhhhh I've argued for a long time that the boomers are the 'got mine screw you' generation that have had it easier than any generation that exists.

I never said housing wasn't attainable.  I have plenty of friends who own homes (I'm old).  But housing prices are climbing like never before.... and many single family homes are being bought as investment property instead of by families.  This also drives prices an concentrates wealth and future wealth making it even more difficult for younger people.

IMO, Zoomers will have it harder than anyone in the housing market.

[Hards Alumni]

When you take into consideration land prices, labor costs, permit costs, material costs, most builders cannot afford to build "starter homes"

100%

[Goose]

UWW

I think you are correct on boomers eventually dying off, but with replacement costs to downsize or rent I think many are going to hang on longer to their homes. We are a stage in our life that we have discussed when we should downsize and honestly I can live in our house for less money than renting an apartment. This boomer is going to be hanging on much longer than I expected us to.

[Hards Alumni]

UWW

I think you are correct on boomers eventually dying off, but with replacement costs to downsize or rent I think many are going to hang on longer to their homes. We are a stage in our life that we have discussed when we should downsize and honestly I can live in our house for less money than renting an apartment. This boomer is going to be hanging on much longer than I expected us to.

Plus in home health care is much better than a nursing home.  I plan for that when the time comes for my parents.  They're talking about willing my brother and myself everything, but I've told them to hold on to the money and expect their health care costs to only rise.   

[Goose]

Hards

My Dad had 24-7 live in health care his last four months of life and I believe he willed himself to die because of the crazy cost and that was 11 years ago. The cost was insane.

[Uncle Rico]

Hards

My Dad had 24-7 live in health care his last four months of life and I believe he willed himself to die because of the crazy cost and that was 11 years ago. The cost was insane.

I plan on holding on forever and bleeding my family dry

[JWags85]

Hards

My Dad had 24-7 live in health care his last four months of life and I believe he willed himself to die because of the crazy cost and that was 11 years ago. The cost was insane.

I mentioned my grandma was in an assisted living/medical care facility in Naples when the Hurricane was on.  For what she pays each month, she could be living in a ritzy high floor unit in the plush part of Naples beachfront.

[rocket surgeon]

Bluntly, people like your son are part of the problem. Not that there is anything wrong with what he's doing, but there's been a rush on people buying starter homes and turning them into secondary (or primary) sources of income. This is anecdotal but I would estimate about 8 houses in every 10 sold in my old neighborhood was immediately back on the market as a rental property.

Again, to be clear, what your son did was smart and perfectly legal. But it does exacerbate the housing shortage.

  on the one hand, tamu, you are right.  however, he did put something else of value out on the market-an affordable house on a lake that someone wouldn't have otherwise been able to enjoy.  win-win. 

[Goose]

Wags

The cost is unreal. I believe my Dad thought it was crazy to spend that much money to keep a 90 year old man alive and he lost his will to live. Fortunately he could afford it, but he felt it was burning money.

[Lennys Tap]

I plan on holding on forever and bleeding my family dry

When my hospice nurse says "No more ice chips, you're broke", I'll smile and bid everyone adieu.

[MU82]

82

I find it hard to believe that anyone that is a college grad and between the ages of 30-38 could not afford a home pre pandemic. Of course, there are exceptions, but many did not buy for non money related reasons imo.

I believe this the housing boom of the past two years is going to leave a lot of folks with buyers remorse if they bought during the run up. Imo, these prices are extremely out of line for the vast majority folks, not just young people. There is no way in hell that I would be home buyer at these prices, even if I were flush with money.

They say you buy a home to live in and not an investment and I agree with that. That being said, it is the biggest investment or purchase most of us ever make and I am very thankful I was not a buyer over past two years.

OK.

[4everwarriors]

Bubble up guy sez U.S. economy is "strong as hell," Hoo new, hey?

[MU82]

Is the job market cooling down? Not in Charlotte: 'We don't even see a yellow light.'

https://www.charlotteobserver.com/news/business/article266919631.html#storylink=cpy

Construction is wrapping up, social media is abuzz and Peter Han is pretty much set to open the newest location for international grocer Super G Mart in Pineville. There's just one thing missing from a potential grand opening: the employees to staff it.

"We're still very far from meeting our hiring needs," said Han, Super G Mart's vice president of business development.

He needs 80 full- and part-time employees to run the 108,000-square-foot international grocery store. Since announcing the new location in April, the store delayed its opening multiple times, due to COVID-related construction supply shortages. But now, Han said he can't set the opening date until he finds enough workers.

"Where are they?" he asked. "It's concerning."

For the last several months, a number of factors have hinted at a an economic slowdown that could impact hiring options. Inflation is putting pressure on American's pocketbooks, despite officials' attempts to slow its pace. A growing number of economists warn the U.S. will see a recession within the year.

But you wouldn't know it looking at Charlotte's job market.

Business owners and hiring managers say nothing has changed since the beginning of this year, when firms across several industries, from manufacturers to accounting companies, were still riding the high of a post-COVID economic boom.

So employers of all kinds are still scrambling for staff, and many candidates have their pick of offers. Even sectors that were expected to show signs of cooling, like construction, still have long lists of job vacancies.

"Everybody is just as busy as they were six months ago or a year ago," said Bill Sofio, who runs the staffing firm Specialized Recruiting Group in Charlotte. "We don't even see a yellow light."

[tower912]

Record profits in the third quarter.  Growth adjusted up to 2.9%