I am anxiously following the real estate market and prices are far outpacing the wage growth, making real estate really unaffordable for a lot of people, and yet there is very little political will from politicians to do anything about it.
This is especially true for desirable areas and big cities, and slowly pushing low earners to the outskirts and even outside towns. I know plenty of people who hoarded multiple properties and now they simply rent them through Airbnb or booking not to mention big corporations trying to snap even more and rent them at outrageous prices. While plenty of people cannot afford even rent in those cities.
Mind you I am not US based, but I know that this is pretty much a world phenomenon for quite a few years who got really accelerated by the COVID pandemic, but its effect will cripple future generations severely who will never be able to purchase their own roof over their head and they will forever be stuck with ever increasing rents increasing enormously the financial burden of those people.
I don’t know for you but I believe this is completely unsustainable in the long term and this will become an even bigger problem in the future and I wonder why there is so little done to tackle the problem now, and what are those politicians hope, that this will magically disappear tomorrow and all will be roses?
Why aren’t universally some laws against home flipping and people owning more than one residential property? I think the right of having a roof over your head is a basic human right and every person out there deserves to have a decent home and not be forced to live on the street.
This has been happening for a while. Most starter homes in the US are townhomes, detached townhomes or small single family homes in a denser neighborhood. Through the years, the building code has changed bit by bit to make those homes unaffordable. It’s similar to how you can pay half the price for a car in Mexico; there are much less mandated safety features. In houses, there are new energy codes (good for the environment) additional safety features like fire sprinklers and other similar things. Additionally, labor is more expensive, appliances and building materials are more expansive.
On the other side, you have people who have lived in their house for decades. The house (actually land) value has increased steadily and maybe they’ve kept it up, remodeling or putting in an addition. Now their kids are all moved out, they’ve retired and they’re ready to downsize, but the house they bought so long ago has appreciated and selling it to downsize would trigger a huge tax event on the appreciated value. They’re better off (financially) to keep it, pushing new buyers to look elsewhere.
It’s a complex problem intermixed with policy and also all the corporations mentioned elsewhere who have learned to profit from the broken system.