Factually wrong. Houses are not becoming cheaper per square foot, they average 350$ a square foot now, where as they ran 75-80$ a square foot 40 years ago. And 250$ a square foot just 5 years ago.
Youâre mistaken on a lot of points regarding the US housing market in this thread, seemingly biased by your opinions of US persons. Sounds like youâre not from the US and donât know what youâre writing about.
I SAID ADJUSTED FOR INFLATION AND QUOTED HOUSE PRICES IN GOLD LEARN TO READ FFS.
anyone who uses words like "factually wrong" isn't worth paying attention to, i know that feeling but this is a mental habit of mids, you want to see more, go to reddit
Yeah, he's saying more stuff that reeks of illiterate mid. Muted him for being a twat.
Where did you say adjusted for inflation?
And the commenter you replied to spoke about wage growth not keeping up with housing prices, so while houses may be keeping up with inflation, wages are not- ie more expensive per square foot.
This link has in highlighted the issue in bold. âWages have not kept up with housing pricesâ
The numbers that define the issue in your favor are skewed by homeowners âtrading upâ for a larger house. If you rerun the numbers for first time home buyers youâd see the wage growth issue in plain sight. When existing homeowners trade up they leverage existing equity to attain a larger house and wages donât have as large of an impact, especially in a low interest rate era. Home builders built larger homes to satisfy this demand, resulting in the larger square footage, and smaller homes were ignored as first time home buyers were not as profitable. As interest rates have risen, we now have people trapped in their homes unable to trade up, and home builders building too large of a home for first time home buyers to afford.
Part of this has to be that even starter homes are viewed as an investment, now. It's not just that people are selling their homes to recoup the equity and lever up into a larger house as their families expand; they expect the total value of their home to increase as well, apart from any work or rennovations they've put into it. So those starter homes become more expensive with each cycle, and younger generations are priced out of home ownership.
