5 ms·
> The reason for-sale inventory is currently so unaffordable is you had a ton of people who paid top dollar for houses in the past few years, but at rock bottom
by slantedview 4y ago
> The reason for-sale inventory is currently so unaffordable is you had a ton of people who paid top dollar for houses in the past few years, but at rock bottom rates
That's part of it. The other part is that builders stopped building enough to keep up with population growth over the last decade, which contributed to the massive inventory shortage. Couple that with the supply side crunch of the pandemic, which made it more expensive than ever to build, and we have a perfect storm.
- nerdponx 4y agoThere was an article posted here a while ago about how the supply of smaller starter homes specifically is much lower than it used to be in the past.
- crooked-v 4y agoOf course, much of that is that many major cities effectively stopped builders from building anything. See, for example, Santa Monica, which allowed a total of 225 new housing units per year for the past twenty years, and where there are now thousands of new units in planning this year because of California's builder's remedy rules bypassing local refusal.
- hackernewds 4y ago> The other part is that builders stopped building enough to keep up with population growth over the last decade, the other essential layer is why? because America is spoilt at utilizing their homesteads as their largest wealth generation asset, even supported by the Federal Reserve that consistently chooses to harm stocks and bonds. never meant to be sustainable with those incentives in place.