4 ms·

Do we really have a housing deficit? If you look at prices they indeed go up because nobody wants to sell and too many people have been wrongly convinced that b

Do we really have a housing deficit? If you look at prices they indeed go up because nobody wants to sell and too many people have been wrongly convinced that buying is always a good idea. If you look at rent on the other hand it has stabilized in most location. I was even able to negotiate a rent decrease last summer. I'm not convinced we have a housing deficit. But I'm convinced that too many people are blindly buying at whatever prices, driving the prices irrationally up.

BugsJustFindMe 2y ago
> Do we really have a housing deficit? The number of new families goes up more every year than the number of new places to live. How's your algebra? > If you look at rent on the other hand it has stabilized in most location. This is false. https://fred.stlouisfed.org/series/CUSR0000SEHA https://fred.stlouisfed.org/series/CUSR0000SEHA Zoom in on the 5 and 10 year windows.
- goalonetwo 2y ago
  Comparatively to the increase in house prices, rents have definitely stabilized. It is now clearly better to rent in most of the US than buy an equivalent house. Use the rent or buy NYT calculator
  - BugsJustFindMe 2y ago
    > Comparatively to the increase in house prices That doesn't mean rent has stabilized. That just means it's the less shitty of two very shitty options.
esalman 2y ago
There's been a 13% rent hike in the similar townhomes to one that I am staying in. I wasn't thinking about buying in this VHCOL area but now I am forced to.
- goalonetwo 2y ago
  Even with a 13% increase you are probably still better off renting if you are in a VHCOL area. I'm in the bay area and at this point my rent could go up 100% and I would still rent. My rent is 3900$/month. The value of my townhouse is 1.9m$. (Palo Alto area). It would make zero sense to buy even if the rent was 8k$/month
  - esalman 2y ago
    Yeah tough decision for me. My rent is $4500. Equivalent townhouse is now being advertised at $5300. I can easily see this go up to 6000-7000 in 3-4 years. If I lock in a condo at the same price ($6000-$7000) right now, provided no housing or economic crash, I'll be in a much better position down the line.

BugsJustFindMe 2y ago

> Do we really have a housing deficit? The number of new families goes up more every year than the number of new places to live. How's your algebra? > If you look at rent on the other hand it has stabilized in most location. This is false. https://fred.stlouisfed.org/series/CUSR0000SEHA https://fred.stlouisfed.org/series/CUSR0000SEHA Zoom in on the 5 and 10 year windows.

goalonetwo 2y ago
Comparatively to the increase in house prices, rents have definitely stabilized. It is now clearly better to rent in most of the US than buy an equivalent house. Use the rent or buy NYT calculator
- BugsJustFindMe 2y ago
  > Comparatively to the increase in house prices That doesn't mean rent has stabilized. That just means it's the less shitty of two very shitty options.

esalman 2y ago

There's been a 13% rent hike in the similar townhomes to one that I am staying in. I wasn't thinking about buying in this VHCOL area but now I am forced to.

goalonetwo 2y ago
Even with a 13% increase you are probably still better off renting if you are in a VHCOL area. I'm in the bay area and at this point my rent could go up 100% and I would still rent. My rent is 3900$/month. The value of my townhouse is 1.9m$. (Palo Alto area). It would make zero sense to buy even if the rent was 8k$/month
- esalman 2y ago
  Yeah tough decision for me. My rent is $4500. Equivalent townhouse is now being advertised at $5300. I can easily see this go up to 6000-7000 in 3-4 years. If I lock in a condo at the same price ($6000-$7000) right now, provided no housing or economic crash, I'll be in a much better position down the line.