New Home Pricing

tonepoet

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So, my Wife and I went out to do some shopping and take a walk. She said "Hey, let's go over where we used to walk through the fields and see how they're developing that into a neighborhood."

The streets were in with two model houses you could walk through. And we thought, what the heck, let's take a walk through the models.

One thing different was that at the front of each model they had a "suite" with a separate entrance, The "suite" could be closed off from the rest of the house.

So, before leaving we asked the salesman for the prices. He said $900,000 and $1.2 million. We said "What?". And in discussing this he said "Well, you know how it used to be that one income could buy a house and then you had to have two incomes to buy a house. Now what we're seeing is two families buying these houses with multiple incomes. Or you can try with two incomes and rent out the front "suite" as a unit. That's why these houses were designed with suites on the front with separate entrances"

I think this is a sad statement of where we are in this country.
 

RBSinTo

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So, my Wife and I went out to do some shopping and take a walk. She said "Hey, let's go over where we used to walk through the fields and see how they're developing that into a neighborhood."

The streets were in with two model houses you could walk through. And we thought, what the heck, let's take a walk through the models.

One thing different was that at the front of each model they had a "suite" with a separate entrance, The "suite" could be closed off from the rest of the house.

So, before leaving we asked the salesman for the prices. He said $900,000 and $1.2 million. We said "What?". And in discussing this he said "Well, you know how it used to be that one income could buy a house and then you had to have two incomes to buy a house. Now what we're seeing is two families buying these houses with multiple incomes. Or you can try with two incomes and rent out the front "suite" as a unit. That's why these houses were designed with suites on the front with separate entrances"

I think this is a sad statement of where we are in this country.
tonepoet,
It isn't your entire country, but certain areas of your country, just like the situation we have in certain aeas of Canada, and likely in many other parts of the world.
Nothing new.
RBSinTo
 

tonepoet

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tonepoet,
It isn't your entire country, but certain areas of your country, just like the situation we have in certain aeas of Canada, and likely in many other parts of the world.
Nothing new.
RBSinTo
True... I am talking about California housing. I was just stunned by this recent experience.
 

HeyMikey

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The other sad thing is builders aren’t building stand alone starter homes. Either it’s going to be McMansions or multi-condos. It used to be there were neighborhoods chock fully of 2-3 bedroom affordable ranches. No more.

I honestly don’t know how an average young couple or family can afford a house these days. You either need wealthy parents, a good inheritance or two very high paying jobs.
 

Minnesota Flats

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I was born in CA and have lived here most of my life.

Bought my first house for $50K in 1980 (equivalent to about $199K in 2024 $). Good luck finding a decent "starter" house for that in today's CA housing market. Not even in Compton (da 'hood...gangs...drug wars). Maybe out in the Mojave Desert, but even there you won't get much of a house for that money. Had I not gotten equity in the market when I did, I'd have to move to some other state at this point, because I couldn't afford to live here as a renting retiree.

CA still offers a lot in terms of climate and scenery, but the quality of life otherwise has degraded to the point of being almost unrecognizable when compared to how it was back during the 1950s-1970s. This state is definitely no longer "middle-class-friendly" the way it once was.
 

GAD

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This is what the farm I grew up on is today. This is literally the same address and this is on the hill by where the barn was.

A1BC7079-4EA9-401E-8BC8-0C7AAC0FEAB0.jpeg

Each unit is $1M
 

davismanLV

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Yeah, it's bad. I was scrolling through something recently and saw a link to smaller senior or starter homes way out North Las Vegas. So I went to the site. These were 2 and 3 bedroom homes just built which were SO FAR out and also less sq. footage than our 2 master bedroom (sorry, primary) townhouse. They started at just under $800K. Of course, it drives up our property values, but still, where am I gonna go?? Nowhere.

Then out of curiosity, I found the townhouse in Los Angeles that we bought on Beachwood Canyon back in the day. 3 bedroom, 2.5 baths, nice floorplan. People thought we were crazy paying $200K for it then. It just sold for a bit over a million. I'm not sure who's buying these places, but golly gee!!
 

GAD

Reverential Morlock
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:eek::eek: Well, it is NJ after all. Glad I left when I did.
It's NJ right off of Rt. 78 so there's an easy path to NYC. When I was a kid Rt 78 wasn't complete yet and it got held up for years. We used to walk down there because there was a roughly two mile stretch that was closed to cars. As soon as they finished it everything changed and all the farms got sold to developers.
 

lungimsam

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And I thought it was happening just in my part of Maryland! We got our house in the early 90’s just before the housing market prices went into outer space. I know I couldn’t afford to live here if I had to start over again. Rent is just as high as buying these days. Crazy. I think the middle class is slowly fading out here. Seems like you have to be in the top 5% of earners in Howard County or poor to get a house. If you are middle class you will have to pay for everything on your own so not enough $$$ to do it.
 
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schoolie

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In Portland, developers are buying up really nice old houses, tearing down the houses and surrounding trees, then building McMansions to the edges of the property lines. It's sickening to watch.
 

chazmo

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True... I am talking about California housing. I was just stunned by this recent experience.
Poet, what part of CA are you talking about?

In Portland, developers are buying up really nice old houses, tearing down the houses and surrounding trees, then building McMansions to the edges of the property lines. It's sickening to watch.
Bay Area, CA has been going through that since the '90s. But, yeah, can't argue against what you're saying...
 

Midnight Toker

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I’ve always liked what they do in Germany. Housing developers are responsible for surrounding area infrastructure (widening of roads from new developments to nearest highway, added school classrooms, additions to local fire/police dept, libraries, hospitals, etc…BEFORE they are allowed to break ground on a single home!!

Here in the US, politicians push urban planning based on potential future tax revenue…and wait until overcrowding is dire….then they start road construction and school expansions after there are already way too many people/cars on the roads, making the situation 10x worse!
 

davismanLV

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I’ve always liked what they do in Germany. Housing developers are responsible for surrounding area infrastructure (widening of roads from new developments to nearest highway, added school classrooms, additions to local fire/police dept, libraries, hospitals, etc…BEFORE they are allowed to break ground on a single home!!
I think there might be several European countries that have similar regulations. Very smart. Las Vegas has grown so big so fast and we do it so backwards that it really causes a lot of grief with traffic, schools, and pretty much everything. Sad.
 

twocorgis

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I think there might be several European countries that have similar regulations. Very smart. Las Vegas has grown so big so fast and we do it so backwards that it really causes a lot of grief with traffic, schools, and pretty much everything. Sad.
Long Island is the same way. Developer-friendly to the point of being detrimental to almost everyone else. New York City is actually much better in that respect.
 

Default

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My house is earmarked for my kids. A significant part of the real estate market is being bought up by absentee landlords.
I can't tell you how many times I've had real estate people cold call me on the cell. Or send me texts. Or send me emails. All to buy my house. One guy was talking to me one day, and I said to him, "I could sell my house, but I couldn't afford to live anywhere else!"
I have no interest in moving to another state away from my family, just so I can buy another house at this age. I'm all about passing along the generational wealth, since basically I had none growing up.
All the new construction around here is McMansions and expensive townhomes.

No Levittowns anymore.
 
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