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And the places they move to are seeing the effects. Rising home prices here in RTP, NC is making life difficult for those not in the tech sector since wages hav

And the places they move to are seeing the effects. Rising home prices here in RTP, NC is making life difficult for those not in the tech sector since wages haven't increased proportionally. Good for us that bought homes even just 4 or 5 years ago, but I feel for those who are just entering their careers and looking to buy or even rent a home.

leetrout 4y ago
It is felt 2-3 counties away. Anything within a 1 hour drive. I am glad big tech is growing in the area but the home prices have been bonkers.
- clusterhacks 4y ago
  Ugh. I do NOT miss commuting into RTP. What counts as a 1 hour drive these days? Dating myself, but I remember co-workers at Nortel commuting into RTP from well east of Raleigh . . . that was awful even years ago when Nortel still existed. Know much about folks buying that far out these days? I mean, I hear apocryphal stories about Apple/Google engineers buying up houses unseen in the immediate RTP area but I am not entirely sure I believe those.
  - leetrout 4y ago
    We were house shopping 5 years ago this month a lost a couple potential houses to unseen offers hours after going on the market. Most recently I have seen neighbors buying for 10% or more over asking. I am in Burlington and everything from Mebane toward RTP has just been crazy prices and moving crazy fast. I am very glad I got in when I did. I worked in Chapel Hill for a couple years and could commute on the back roads but going in to Cary or RTP would be at least an hour for me.
clusterhacks 4y ago
Anecdotally speaking re: RTP, NC but I think the area may have peaked back in summer. Inventory is sitting much longer. I know sellers who sold under asking for a price much more similar to previous years recently. New construction is always a bit behind here and we will definitely see higher prices in central NC with the various tech companies increasing their presence in the area. But it was complete bonkers until August. Sellers were getting double-digit all-cash offers 10%-20% over asking price. Never seen anything like that here before.
- kevinventullo 4y ago
  A lot of the slowdown may also be due to rising interest rates.
  - clusterhacks 4y ago
    Maybe, but I had friends making all-cash, over-asking-price offers last summer but getting outbid. Interest rates never factored into their thoughts at all . . . They simply noped out on shopping because the market seemed so irrational to them personally. I wonder if other similarly wealthy buyers looked around and just did the same . . .
kitsunesoba 4y ago
It cascades all the way down to the lowest income brackets, unfortunately, with each group displacing the next group down. It's a systemic issue and can't be fixed by focusing on any particular set of earners. The entire system is broken and needs to be replaced.
- lotsofpulp 4y ago
  What is the systemic issue? Some people are too poor compared to others? Insufficient supply of housing in desirable metros? Insufficient supply of desirable metros? Technology and automation allowing for economies of scale that allow fewer people to capture more and more of the gains?
  - kitsunesoba 4y ago
    The biggest one is likely housing as a store of value or investment. Countries which don't embrace that view of housing, like Japan, have significantly less problems with housing supply despite having fewer points of concentration to spread the population across. There, luxury housing (e.g. high rise condos in the heart of the city) are of course still expensive but more affordable housing is broadly available, mostly in residential districts. Houses are seen as a liability and as such property with housing on it deprecates much the way a car would in the US. As a result it's not too difficult to find housing for sale for prices below ~$200k USD in the Tokyo metro area with options opening up considerably if you bump the upper limit to $300k USD. Those prices are unheard of in most US metro areas, with even the most dumpy closet of an apartment you can find fetching prices higher than that. Also note that this is just what's visible to me as a foreigner — there's likely a large number of properties that I can't see. This is also partially enabled by their extensive public transportation. It's much less of a problem to not be in the heart of the city when getting there costs ¥500 or less and is a ~30 minute ride that you're free to read, catch up on email, etc during. So in short, 1) housing should be treated as homes, not investments 2) most US cities need more density 3) public transportation needs to be expanded and properly supported.
    - midoridensha 4y ago

leetrout 4y ago

It is felt 2-3 counties away. Anything within a 1 hour drive. I am glad big tech is growing in the area but the home prices have been bonkers.

clusterhacks 4y ago
Ugh. I do NOT miss commuting into RTP. What counts as a 1 hour drive these days? Dating myself, but I remember co-workers at Nortel commuting into RTP from well east of Raleigh . . . that was awful even years ago when Nortel still existed. Know much about folks buying that far out these days? I mean, I hear apocryphal stories about Apple/Google engineers buying up houses unseen in the immediate RTP area but I am not entirely sure I believe those.
- leetrout 4y ago
  We were house shopping 5 years ago this month a lost a couple potential houses to unseen offers hours after going on the market. Most recently I have seen neighbors buying for 10% or more over asking. I am in Burlington and everything from Mebane toward RTP has just been crazy prices and moving crazy fast. I am very glad I got in when I did. I worked in Chapel Hill for a couple years and could commute on the back roads but going in to Cary or RTP would be at least an hour for me.

clusterhacks 4y ago

Anecdotally speaking re: RTP, NC but I think the area may have peaked back in summer. Inventory is sitting much longer. I know sellers who sold under asking for a price much more similar to previous years recently. New construction is always a bit behind here and we will definitely see higher prices in central NC with the various tech companies increasing their presence in the area. But it was complete bonkers until August. Sellers were getting double-digit all-cash offers 10%-20% over asking price. Never seen anything like that here before.

kevinventullo 4y ago
A lot of the slowdown may also be due to rising interest rates.
- clusterhacks 4y ago
  Maybe, but I had friends making all-cash, over-asking-price offers last summer but getting outbid. Interest rates never factored into their thoughts at all . . . They simply noped out on shopping because the market seemed so irrational to them personally. I wonder if other similarly wealthy buyers looked around and just did the same . . .

kitsunesoba 4y ago

It cascades all the way down to the lowest income brackets, unfortunately, with each group displacing the next group down. It's a systemic issue and can't be fixed by focusing on any particular set of earners. The entire system is broken and needs to be replaced.

lotsofpulp 4y ago
What is the systemic issue? Some people are too poor compared to others? Insufficient supply of housing in desirable metros? Insufficient supply of desirable metros? Technology and automation allowing for economies of scale that allow fewer people to capture more and more of the gains?
- kitsunesoba 4y ago
  The biggest one is likely housing as a store of value or investment. Countries which don't embrace that view of housing, like Japan, have significantly less problems with housing supply despite having fewer points of concentration to spread the population across. There, luxury housing (e.g. high rise condos in the heart of the city) are of course still expensive but more affordable housing is broadly available, mostly in residential districts. Houses are seen as a liability and as such property with housing on it deprecates much the way a car would in the US. As a result it's not too difficult to find housing for sale for prices below ~$200k USD in the Tokyo metro area with options opening up considerably if you bump the upper limit to $300k USD. Those prices are unheard of in most US metro areas, with even the most dumpy closet of an apartment you can find fetching prices higher than that. Also note that this is just what's visible to me as a foreigner — there's likely a large number of properties that I can't see. This is also partially enabled by their extensive public transportation. It's much less of a problem to not be in the heart of the city when getting there costs ¥500 or less and is a ~30 minute ride that you're free to read, catch up on email, etc during. So in short, 1) housing should be treated as homes, not investments 2) most US cities need more density 3) public transportation needs to be expanded and properly supported.
  - midoridensha 4y ago