3 ms·

Housing values in and around Silicon Valley have gone up extraordinarily since I was young for reasons that were not easily predictable. It's not a good model

Housing values in and around Silicon Valley have gone up extraordinarily since I was young for reasons that were not easily predictable. It's not a good model for housing costs in the rest of the US. I grew up in uninteresting towns in Monterey County and San Bernardino County and both could check off points of 'acceptable places to live' which are affordable to the middle classes. No one talks about them because no one cares.

linguae 4y ago
And even now these places are starting to become unaffordable for the middle class. I had an unsuccessful search last autumn for homes in Watsonville and northern Monterey County under $550,000 due to bidding wars that often resulted in homes selling for considerably more than asking. Prices are now starting to drop and inventory is rising, but interest rates are considerably higher than last fall when I started my search. There’s been an explosion in home prices in the California Central Valley since the pandemic started. In 2019 it was possible to buy a brand new house in Los Banos and Merced for $280,000 and $250,000, respectively. Today you need around $450,000 and $400,000, respectively, to purchase similar new homes. And it’s not just the cost of materials that led to the massive price hikes; the cost of pre-existing homes also boomed in these towns. I grew up in Sacramento and now rent an apartment in Santa Cruz County. Sacramento, once known for affordable housing with easy access to Bay Area and Tahoe amenities, is no longer affordable for many people. There are massive homeless encampments that I see whenever I visit the area these days. The housing situation is getting out of hand, and while this may not be indicative of a national crisis, in California the crisis has spread outside of the coast.

3 ms·

Housing values in and around Silicon Valley have gone up extraordinarily since I was young for reasons that were not easily predictable. It's not a good model

by nineplay 4y ago

linguae 4y ago
And even now these places are starting to become unaffordable for the middle class. I had an unsuccessful search last autumn for homes in Watsonville and northern Monterey County under $550,000 due to bidding wars that often resulted in homes selling for considerably more than asking. Prices are now starting to drop and inventory is rising, but interest rates are considerably higher than last fall when I started my search. There’s been an explosion in home prices in the California Central Valley since the pandemic started. In 2019 it was possible to buy a brand new house in Los Banos and Merced for $280,000 and $250,000, respectively. Today you need around $450,000 and $400,000, respectively, to purchase similar new homes. And it’s not just the cost of materials that led to the massive price hikes; the cost of pre-existing homes also boomed in these towns. I grew up in Sacramento and now rent an apartment in Santa Cruz County. Sacramento, once known for affordable housing with easy access to Bay Area and Tahoe amenities, is no longer affordable for many people. There are massive homeless encampments that I see whenever I visit the area these days. The housing situation is getting out of hand, and while this may not be indicative of a national crisis, in California the crisis has spread outside of the coast.