4 ms·

Good. I had a house I sold in 2019 that has "doubled" in value since then. I couldn't imagine paying that much for that little house.

• whywhywhywhy 4y ago
  It's not like people have had a choice.
  • ackbar03 4y ago
    Why is there suddenly such a shortage of housing though? There can't have been suddenly more people?
    • vsareto 4y ago
      I think Toronto has a huge problem with foreign investors driving up housing prices, so probably more of that
    • subpixel 4y ago
      Housing valuation over the last decade is not entirely dissimilar from crypto valuation over the same period. But while they are both irrationally overvalued, you can’t mine for new housing stock.
    • deleted 4y ago
      [deleted]
    • thebigspacefuck 4y ago
      Because the other side of supply is demand. Demand increased as 2 income couples now want to both have a home office to work from home, salaries went up from the great resignation, savings increased due to lack of anything to spend on, and rates were incredibly low. Basically the perfect opportunity that made everyone ready to buy at the same time. Some amount of people moved from a HCOL area to a LCOL area and kept the same salary so they could afford to spend more as well. This all led to the people thinking they need to buy now or they are going to miss out which further increased demand.
      • ianai 4y ago
        I deeply suspect it's got a lot to do with interest rates pushing investors into the residential housing market who never would be there outside of these conditions. When a market is entered by participants with vastly more resources than previous market players valuations change vastly.
    • ryathal 4y ago
      Building was paused for about a year (Covid and lumber prices), so there are a ton of new builds that didn't happen or got delayed. New Construction was already barely keeping up or falling behind pre-pandemic. Covid also caused a massive swing in what was desirable housing, small city apartments are a lot less attractive when lockdowns were possible so demand moved to places that weren't prepared for it.
    • wolverine876 4y ago
      In the US, about a third is being purchased by Wall Street investors. There's a relatively recent Washington Post article about it.
  • foogazi 4y ago
    > It's not like people have had a choice. Buying vs renting is a choice
    • jlokier 4y ago
      Rents have increased by a similar factor, as the markets are linked. If you can buy, you can choose between buying and renting, but you can''t choose not to to pay a large increase on a little house one way or another. What's more, unlike long term fixed rate mortgages, rent tends to increase every year according to market conditions, so when renting you can't avoid the increase by staying where you are.
      • foogazi 4y ago
        > What's more, unlike long term fixed rate mortgages, rent tends to increase every year according to market conditions Market conditions means rents can decrease too And unlike mortgages you can’t finance rents - it’s based on what the tenants are willing to pay