4 ms·

Solid analysis. If I might add some factors about my particular market that might be similar to other people's markets that I believe confound the issues: -- B

Solid analysis. If I might add some factors about my particular market that might be similar to other people's markets that I believe confound the issues: -- Builders are not building the kind of properties that buyers want. In my market these are suburban tract housing generally at a sub-$500K price point with low-end construction materials and finishes. Thus, buyers say "there's nothing to buy" because they aren't the kind of houses they want. They end up buying them anyway because it's all they can afford and/or other factors like proximity to work or family. But, looking at days on market, etc, relative to other properties, it's pretty clear buyers of these homes are acting more out of desperation. -- Obsolescence. We have a lot of (older) houses in our area that are simply not conducive to modern living and until someone is able to do major overhauls, they will always be less desirable. Think tiny parlor rooms, bedrooms that barely fit a double bed, kitchens closed off from the rest of the house, single bathrooms, etc. -- Non-turn key properties. My market is such that many local buyers live paycheck to paycheck and will not be able to afford renovations of any kind. Thus, the people buying non-turnkey properties are our out of area newcomers (of which there are many) but these buyers are such that they tend to want more amenities than our existing housing stock can provide. So basically anything not turnkey is sitting longer even in a competitive market. So my point in all of the above is to say that in some markets, I believe there is more inventory than believed, but because it is not in line with market expectations you end up with the general public believing there are limited opportunities.

lotsofpulp 4y ago
> In my market these are suburban tract housing generally at a sub-$500K price point with low-end construction materials and finishes. Thus, buyers say "there's nothing to buy" because they aren't the kind of houses they want. There is something to buy, but there is nothing to buy at the price buyers want to pay. Developers can get away with less expensive finishes because they know demand is still so high relative to supply that the houses will still be sold.
- coward123 4y ago
  I'd actually be ok with them using less expensive finishes so long as the houses themselves were built to last more than 20 years... there's a house I drive past regularly in a development where it's obvious that the sheet siding wasn't even put up square. I mean - what do the studs, the foundation, the insulation, etc in that house look like if they couldn't even get the seams on the siding to hang correctly? The finishers all get swapped out every 5-15 years as fads change, and they are the easiest things for homeowners to do themselves (IE: a little Home Depot style remodel). But, it gets a lot harder to fix things in the walls that weren't done correctly from the beginning.
nradov 4y ago
Builders will always build the most profitable projects that they can. In many desirable areas the construction cost is a relatively small part of the cost after purchasing the land and obtaining permits. Thus it makes sense to build with high-end construction materials and finishes. Even if that prices out many lower-income buyers, there are still plenty of affluent buyers to snap up the units. As for "non-turn key properties", whatever happened to living in a shithole for a few years and saving your money until you can afford to renovate?
- datavirtue 4y ago
  "whatever happened to living in a shithole for a few years" Mom. I have wanted to buy land with a shitty trailer for years so that I can live there and build with cash. Wife thinks I'm nuts. I'm addicted to building things out of nothing though, affluency bores me.
- danaris 4y ago
  > whatever happened to living in a shithole for a few years In other words, "I had to suffer (or grew up with an expectation that many people had to suffer) this way, so no one else gets to complain about having to suffer this way, even if it's very possible to eliminate this kind of pointless suffering from the system."
iggldiggl 4y ago
> simply not conducive to modern living [...] kitchens closed off from the rest of the house I still cannot understand that trend, to be honest. Cooking generates smells, sometimes greasy fumes, and especially in summer unwanted heat, and I don't see why I need to purposely dump all those throughout the rest of the house.

lotsofpulp 4y ago

> In my market these are suburban tract housing generally at a sub-$500K price point with low-end construction materials and finishes. Thus, buyers say "there's nothing to buy" because they aren't the kind of houses they want. There is something to buy, but there is nothing to buy at the price buyers want to pay. Developers can get away with less expensive finishes because they know demand is still so high relative to supply that the houses will still be sold.

coward123 4y ago
I'd actually be ok with them using less expensive finishes so long as the houses themselves were built to last more than 20 years... there's a house I drive past regularly in a development where it's obvious that the sheet siding wasn't even put up square. I mean - what do the studs, the foundation, the insulation, etc in that house look like if they couldn't even get the seams on the siding to hang correctly? The finishers all get swapped out every 5-15 years as fads change, and they are the easiest things for homeowners to do themselves (IE: a little Home Depot style remodel). But, it gets a lot harder to fix things in the walls that weren't done correctly from the beginning.

nradov 4y ago

Builders will always build the most profitable projects that they can. In many desirable areas the construction cost is a relatively small part of the cost after purchasing the land and obtaining permits. Thus it makes sense to build with high-end construction materials and finishes. Even if that prices out many lower-income buyers, there are still plenty of affluent buyers to snap up the units. As for "non-turn key properties", whatever happened to living in a shithole for a few years and saving your money until you can afford to renovate?

datavirtue 4y ago
"whatever happened to living in a shithole for a few years" Mom. I have wanted to buy land with a shitty trailer for years so that I can live there and build with cash. Wife thinks I'm nuts. I'm addicted to building things out of nothing though, affluency bores me.
danaris 4y ago
> whatever happened to living in a shithole for a few years In other words, "I had to suffer (or grew up with an expectation that many people had to suffer) this way, so no one else gets to complain about having to suffer this way, even if it's very possible to eliminate this kind of pointless suffering from the system."

iggldiggl 4y ago

> simply not conducive to modern living [...] kitchens closed off from the rest of the house I still cannot understand that trend, to be honest. Cooking generates smells, sometimes greasy fumes, and especially in summer unwanted heat, and I don't see why I need to purposely dump all those throughout the rest of the house.