5 ms·

It seems that per sf house prices haven’t gone up that much. We romanticize the idea of older generations being able up afford a home, but those houses were a l

by tedggh 3mo ago

It seems that per sf house prices haven’t gone up that much. We romanticize the idea of older generations being able up afford a home, but those houses were a lot smaller than they are today, the average size I think was around 1500 sf, and a family of 5 lived there. Cities were also not as livable as they are today. Take for example NYC in the 1970s and 80s, where a young photographer could afford an apartment in Manhattan, with the caveat that the area was riddled with crime. Then there are the city ordinances that discourage multi family housing, so if you are a builder and you need to decide whether spend years fighting in court vs going to the suburbs and build large homes, that’s a very easy decision to make. The current housing deficit sits around 3-4 million homes.

rapind 3mo ago
Per sf comparisons blatantly ignore the bonkers increases in land prices. Good luck finding a 1500 sf house, let alone one with a backyard that hasn't completely outpaced inflation.
- tedggh 3mo ago
  Land is not very expensive in most suburbs, but houses have become huge, the average size in the area where I live is 2700 sf. That’s because building a 3000 sf home doesn’t take twice the time and labor a 1500 sf takes, so there’s an economic incentive to build bigger homes. People also look for more space today than 40 years ago. A 1500 sf house would be considered a very small house and would likely be very hard to sell. Again, the average sf price remains in the low $200, so that’s not a huge difference to 40-50 years ago, factoring inflation. Not to mention you get much better quality materials, appliances and construction today. So, the fix appears to be more small homes, ideally condos, in urban areas just like many other countries do. The problem is, it is technically impossible to build multi family in most cities in America due to the ridiculous zoning laws and ordinances by city governments and neighborhood associations. If you own a lot in a city neighborhood and try to build an apartment building you will likely face years of court battles.
  - rapind 3mo ago
    > Land is not very expensive in most suburbs Compared to the farmland it used to be, it is significantly more expensive.
lux-lux-lux 3mo ago
Reminder for any ‘houses used to be smaller’ rationalizations of home prices that the median homebuyer is now in their late fifties; these are rich people with decades of inflated wealth buying rich people goods, not a shift in preferences by younger homebuyers.

by tedggh 3mo ago

rapind 3mo ago

Per sf comparisons blatantly ignore the bonkers increases in land prices. Good luck finding a 1500 sf house, let alone one with a backyard that hasn't completely outpaced inflation.

tedggh 3mo ago
Land is not very expensive in most suburbs, but houses have become huge, the average size in the area where I live is 2700 sf. That’s because building a 3000 sf home doesn’t take twice the time and labor a 1500 sf takes, so there’s an economic incentive to build bigger homes. People also look for more space today than 40 years ago. A 1500 sf house would be considered a very small house and would likely be very hard to sell. Again, the average sf price remains in the low $200, so that’s not a huge difference to 40-50 years ago, factoring inflation. Not to mention you get much better quality materials, appliances and construction today. So, the fix appears to be more small homes, ideally condos, in urban areas just like many other countries do. The problem is, it is technically impossible to build multi family in most cities in America due to the ridiculous zoning laws and ordinances by city governments and neighborhood associations. If you own a lot in a city neighborhood and try to build an apartment building you will likely face years of court battles.
- rapind 3mo ago
  > Land is not very expensive in most suburbs Compared to the farmland it used to be, it is significantly more expensive.

lux-lux-lux 3mo ago

Reminder for any ‘houses used to be smaller’ rationalizations of home prices that the median homebuyer is now in their late fifties; these are rich people with decades of inflated wealth buying rich people goods, not a shift in preferences by younger homebuyers.