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Yes housing is not in accorandce with the construction costs. Essentially you have inflated bureaucracy and artificial supply constraints & zoning (NIMBY) tryi
by ixacto 8y ago
Yes housing is not in accorandce with the construction costs. Essentially you have inflated bureaucracy and artificial supply constraints & zoning (NIMBY) trying to keep the housing prices up.
Houses are just fine in Boise, ID or Albany, NY but so much cheaper than the coasts. This is really frustrating, and I don't see a politicly workable solution. So spend 50% on rent or move to Idaho...
None of this is even considering that we may be able to substantially lower construction costs with prefabricated/3d printed homes/economies of scale.
- amorphid 8y agoIt'll go up in Idaho, too, when supply dries up. Won't it? "Move to Boise. There aren't too many people yet!"
- AmVess 8y agoBoise is the fastest growing city in the US, with attendant increase in housing cost. Prices aren't completely crazy yet, but my house is worth 65% more than what I paid for it, and is increasing by the year at too large of a rate. This was a good place to move to, now not so much.
- thrav 8y agoI had a feeling it was just a matter of time before Boise set a course to become the next Austin. One visit 5-6 years ago for a few days to interview at a tech company, and I thought, “Huh, Boise is pretty damn cool.”
- SamReidHughes 8y agoIn winter, you'll think, "Boise is pretty damn cold."
- AmVess 8y agoWith the exception of last year, my heater only runs 3 months a year, and not very often at that.
- enraged_camel 8y agoBoise gets down to around mid-20s (F) in the winter, which isn't that cold. Humidity is also pretty low, so it tends to feel quite crisp.
- seanmcdirmid 8y agoIsn't Boise going to be similar to SLC in climate? I mean, no huge lake, but it seems like everything else is very similar.
- wallace_f 8y agoYea. Real people, cool people, people that cared about each other. Now Boise has already become attractive to move to. It's sad. Dread the day when Boise becomes cool. That's when all the phonies and psychopaths show up.
- dingo_bat 8y ago> Prices aren't completely crazy yet, but my house is worth 65% more than what I paid for it, and is increasing by the year at too large of a rate. Just an anecdote, but in India this rate of growth is expected. People expect their property to fetch double returns in 3-5 years. My parents bought an apartment for ₹1.5M, we lived there for about 7 years and it sold for ~₹6M. Me and my wife are planning to purchase our own now and we factor this growth expectation into our calculations.
- seanmcdirmid 8y agoIf prices are rising rapidly, speculation occurs distorting supply and demand needs. Then the bubble goes "pop" and the process starts again. So when prices stop being volatile, will you win or will you lose?
- dingo_bat 8y agoIt's not a bubble if the economy is growing at the same or faster rate, though.
- wyattpeak 8y agoTrue enough, but is your part of India experiencing much faster growth than the country at large? Because the Indian GDP growth rate seems to be hovering fairly stably around 7%.
- dingo_bat 8y agoI think you're right. My family doesn't stay in one place for more than 7-8 years. We always move to wherever there are better jobs, etc. So my "part" of India is wherever there is most growth.
- seanmcdirmid 8y agoIt's not a bubble until it is. Supply and demand must be considered besides money supply. For those who think "real estate" is a sure bet to high returns, we've been there and done that before, even for emerging economies. If you really want to know, look at home rents vs. home purchase prices, those will never lie.
- closeparen 8y agoA cursory Google search indicates there are Indian savings accounts that return 7%. That would be a pretty good year in the stock market over here.
- anonuser123456 8y agoIIRC India has a huge cultural preference for storing wealth in gold. Indian banks probably have to pay high rates to attract capital.
- A2017U1 8y agoGetting 7% isn't that hard in other parts of the developing world that don't have a preference for gold. It hurts a bit seeing a saving account that has better performance than my risky equities investments.
- NTDF9 8y agoBut those currencies devalue a lot, devalue often. You are making wealth by storing USD cash. Maybe GBP not so much after brexit.
- malloryerik 8y agoAlso factor in a nearly 4.5% inflation rate...
- MikeAmelung 8y agoAlong with the sibling replies, maybe this is just part of the natural cycle of things. People will make Boise the new Austin. Prices will rise, demand for better infrastructure increases, things improve. A generation is raised. Their children move on to the next few smallish cities and bring them up to spec. As a lifelong resident of a city in seemingly permanent decline (St. Louis), it sounds good to me.
- tonyedgecombe 8y agoIn the UK we left it to the free market for the last 30 years and the market completely failed to meet demand. Admittedly there were some planning constraints but even as those have been lifted the developers continue to make large expensive homes rather than the dense housing we desperately need.
- neverminder 8y ago> developers continue to make large expensive homes Correction - developers continue to make expensive homes. I'm about to move in to a studio in east London for £1400 per month plus utilities, estimated total of £1650 per month. It's a ~40 story residential tower, so from the point of land footprint it's as densely populated as it gets.
- deleted 8y ago[deleted]
- stale2002 8y ago> I don't see a politicly workable solution The workable political solution, IMO, is to the solve the problem at the state or federal level. Or in other words, just make a law that overrules all of the local restrictions that exist, and tell the NIMBY cities to go suck it. A city might have enough votes within its own borders to put up these rules and regulations, but they have much less of a chance of outvoting either the state or the nation as a whole.
- conanbatt 8y agoWho will win an election with that platform? Foreigners and renters do not have the political clout.
- conanbatt 8y agoId separate houses from land. Its probable that housing as a construction is not that much higher than the cost of bulding it. Land is where prices go up without individual investment.
- nradov 8y agoConstruction costs for basic structures are already quite low, especially for large new developments with many similar units. More prefabrication could help but it would be a marginal improvement. The real costs are for land acquisition and construction permits.