Starter Homes....

[dddrees]

Originally Posted by Star Ferry

It is pretty sad we’ve got a whole generation of young people who, unless they won the parental lottery, will struggle to buy a home. This could make people angry, rootless, and less invested in their communities.

Housing being expensive everywhere is partly why I won’t bail on NYC. If you can get a 3/2 here for $7000/month why go elsewhere where it still costs $3500/month. The annual delta is 40 grand, which sucks but whatever.

Pretty sure we’ve yet to see the worst of this yet. More angry or people that are unhappy about their lot in life generally speaking isn’t the best thing.

[mountainjogger]

I would hate to be starting out in this market. It is insane.

[East Bay Rider]

Originally Posted by Star Ferry

It is pretty sad we’ve got a whole generation of young people who, unless they won the parental lottery, will struggle to buy a home. This could make people angry, rootless, and less invested in their communities...

IMO outrageous student loan debt will make it very difficult for many young professionals to take the step into home ownership until much later in life. Starting families too. To help combat this my intention is to gift the sale price of my house to my son through a trust of some kind for his own property down payment in return for an inlaw apartment or small cottage on the property.
Personally, I grew up in a reasonably large house. Large enough that sometimes I couldn't tell where my siblings were or even if they were home or outside. I've never understood the desire for a large house. My own house is a 1,100 square foot bungalow with finished cellar and attic loft for additional space. There are only three of us in the household so I understand a house this size is not practical for those with larger families.

[DocHorton]

Originally Posted by Star Ferry

It is pretty sad we’ve got a whole generation of young people who, unless they won the parental lottery, will struggle to buy a home. This could make people angry, rootless, and less invested in their communities.

Housing being expensive everywhere is partly why I won’t bail on NYC. If you can get a 3/2 here for $7000/month why go elsewhere where it still costs $3500/month. The annual delta is 40 grand, which sucks but whatever.

You can get a 3/2 in Texas for $2000 a month, or buy a 5000 sq ft house for less than a million. Probably why tens of thousands of folks are moving here every year.

[JasoninDenver]

Originally Posted by DocHorton

You can get a 3/2 in Texas for $2000 a month, or buy a 5000 sq ft house for less than a million. Probably why tens of thousands of folks are moving here every year.

Ahh, the benefit of available land does do wonders for affordability.

We bought a “starter” home in a very desirable Denver burb that is fully built out. At $800k and 3,500 sq feet, it was marketed as a Cherry Hills starter home. It was literally the only home in the area we, as a doctor and a lawyer, could afford ten years ago. Now young couples in their 30s are moving here in droves buying in at more than double the price so people do seem to have a ton of resources parental or otherwise.

[Star Ferry]

Originally Posted by JasoninDenver

Ahh, the benefit of available land does do wonders for affordability.

We bought a “starter” home in a very desirable Denver burb that is fully built out. At $800k and 3,500 sq feet, it was marketed as a Cherry Hills starter home. It was literally the only home in the area we, as a doctor and a lawyer, could afford ten years ago. Now young couples in their 30s are moving here in droves buying in at more than double the price so people do seem to have a ton of resources parental or otherwise.

I had the pleasure of visiting Cherry Hills once and it’s a beautiful neighborhood.

Since these parent/family buys push up market prices for everyone, I’d say familial wealth is now the #1 factor in whether a person can buy a home. More important than intelligence, hard work, income, character, education, or anything else. The consequences will be enormous and will play out in the coming years and decades.

[DocHorton]

Originally Posted by JasoninDenver

Ahh, the benefit of available land does do wonders for affordability.

We bought a “starter” home in a very desirable Denver burb that is fully built out. At $800k and 3,500 sq feet, it was marketed as a Cherry Hills starter home. It was literally the only home in the area we, as a doctor and a lawyer, could afford ten years ago. Now young couples in their 30s are moving here in droves buying in at more than double the price so people do seem to have a ton of resources parental or otherwise.

Lol...an $800k, 3500 sq ft house, in a high-end suburb, is not a starter home. But yes, having more land helps.

My first house out of school was 1650 sq ft and $127k in 2005 in Oklahoma. That's a starter home. Same house now is worth probably $225k.

[Star Ferry]

Originally Posted by DocHorton

You can get a 3/2 in Texas for $2000 a month, or buy a 5000 sq ft house for less than a million. Probably why tens of thousands of folks are moving here every year.

I was thinking of still-expensive but less insane cities like Chicago or Austin or Denver, just based on career opportunities. If I had a fully remote job, though, then I agree there’s no need to spend $3500 a month and $2000 would be a solid budget

[Syed117]

We bought our starter home in NY about 2 years ago. New construction about 2800 sq ft with a finished basement. Just me, my wife, and my dad, but aside from a few spare bedrooms, we filled it out pretty well. My basement is my sanctuary.

First kid on the way and I think we will be here for maybe 5 years.

[austinp]

My Starter house was a 3/2 1600sqft for 129k in 1999. Zillow has it now for 399k. Inexpensive houses are still available just not in the areas most young people are willing to live. When I bought that house it was considered way out of town. It’s not any more.


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[JasoninDenver]

Originally Posted by DocHorton

Lol...an $800k, 3500 sq ft house, in a high-end suburb, is not a starter home. But yes, having more land helps.

My first house out of school was 1650 sq ft and $127k in 2005 in Oklahoma. That's a starter home. Same house now is worth probably $225k.

My first home was a 1300 sq ft complete dump in Durango, Colorado. I paid $120k for it at the same time my buddy bought 2000 sq ft with a swimming pool in Ft. Worth for less money. Mine even came with a dead deer in the back yard! After doing a complete kitchen and bath remodel, I sold it for $200k and thought I made out like a king.

My old house sold last year for $750k after being renovated a second time. I have no idea how a small town can attract teachers, nurses and cops when they cannot afford to ever buy a house there.

[JasoninDenver]

Originally Posted by Star Ferry

I had the pleasure of visiting Cherry Hills once and it’s a beautiful neighborhood.

Thanks! We do love our area but we live in a small pocket of 1960’s ranch homes lovingly referred to as the “slums” of Cherry Hills. We bought into the school system and that is driving the current influx of young families. However, about 30% of our neighboring families have at least one spouse who also grew up in the hood.

It is clear that they all benefit from generational wealth. My wife and I grew up quite poor and we still scratch our heads and wonder what we are doing here.

[Star Ferry]

Originally Posted by JasoninDenver

My first home was a 1300 sq ft complete dump in Durango, Colorado. I paid $120k for it at the same time my buddy bought 2000 sq ft with a swimming pool in Ft. Worth for less money. Mine even came with a dead deer in the back yard! After doing a complete kitchen and bath remodel, I sold it for $200k and thought I made out like a king.

My old house sold last year for $750k after being renovated a second time. I have no idea how a small town can attract teachers, nurses and cops when they cannot afford to ever buy a house there.

750K for a 1300 square foot home in Durango, Colorado. Holy crap. The housing crisis should be front page news.

[Blansky]

Originally Posted by Star Ferry

750K for a 1300 square foot home in Durango, Colorado. Holy crap. The housing crisis should be front page news.

I kinda think it is.

It's just that nobody is doing anything about it. And the growing discontent by young people that have such a difficult path to home ownership.

The stats that this is the first generation that isn't/won't do as well as their parents. I guess lots of reasons but there you have it.

[Kinnakeet]

Originally Posted by Blansky

I kinda think it is.

It's just that nobody is doing anything about it. And the growing discontent by young people that have such a difficult path to home ownership.

The stats that this is the first generation that isn't/won't do as well as their parents. I guess lots of reasons but there you have it.

Lower life expectancy as well.

[enjoythemusic]

Originally Posted by Blansky

I kinda think it is.

It's just that nobody is doing anything about it.

Don't fight the Fed, Jerome said months ago he does not want prices to go back to pre-hyper-ish inflation caused by their policies. Plus BlackRock and other Fed arms are too invested now so have to protect their RE book.

Yes, sadly they don't care about the lower 80% and the Fed's actions prove this time and again.

Get a job as close to where the currency is 'created', that should be taught in schools.

[GB-man]

All I know is I am very grateful to already have a serviceable home. I could have remained in my starter home and been ok but even that has gone up over 100% in value since I bought in 2013. We moved in 2019 and it was one of the rare things that worked out for me both financially and quality of life.

I think star ferry is right. A lot of our clients have help from parents for a down payment these days and that was before rates pushed people back 20% in terms of what they could afford.

[airchitect]

“And I’m in debt up to my eyeballs!” describes 90% of America.

All you have to do is watch all of the 25yo on house hunters who NEED 5000sqft houses with chefs kitchens to “entertain”. Two people earning a combined 100k as an entrepreneur and stay at home fire fighter…… why wouldn’t they have a $950k budget????


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[Widows Son]

Interesting thread!!! Married, no kids in 1999. Bought a 2700 sq ft 4BR, 2.5 bath center hall colonial on one acre in a very nice area, great schools etc. Got divorced 7 years later, still no kids. Could have bought her out and afforded to live there. Instead sold the house and bought my bachelor pad house in the same community. 1700 sq ft 3br, 2 bath ranch on 1/2 an acre. Fast forward another few years, got remarried and had a son. I sometimes wonder if I should have kept the old house. The more I think about it, no. We all have our own bedrooms, and we spend 90% in the family room or the screened in porch anyway. The living expenses are very manageable, and I'm not a slave to the yard. The purchase price (at least for me) isn't the problem, I just can't see heating and cooling a house where easily 1/2 of the rooms aren't even used. Additionally, property taxes here are insane, and are based on the home's value. The wife stayed home with our son until he started school, then went back part time. Tiny mortgage, no other debt, no headaches.

[JasoninDenver]

Originally Posted by Star Ferry

750K for a 1300 square foot home in Durango, Colorado. Holy crap. The housing crisis should be front page news.

It is interesting to see how some of these mountain towns are completely sticking their head in the sand about housing. Vail just killed an affordable housing development proposed by the resort to house their workforce. I think it was the first affordable housing initiative in Vail Valley in more than 10 years.

[JasoninDenver]

Originally Posted by airchitect

“And I’m in debt up to my eyeballs!” describes 90% of America.

All you have to do is watch all of the 25yo on house hunters who NEED 5000sqft houses with chefs kitchens to “entertain”. Two people earning a combined 100k as an entrepreneur and stay at home fire fighter…… why wouldn’t they have a $950k budget????


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My wife goes ballistic every time a 30 year old demands a professional range and then admits that they don’t cook.

[shaunylw]

I remember having this conversation with a family member when they said they would ever consider paying more than 2k a month in California. Now their mortgage is almost 4k on their first house . When the average home prices are almost 500k, it makes it extremely difficult for low to middle income earners.

At this point i could see major issues in the future if a combined family income isn’t in the 200k range. 100k in California, you essentially have no chance regardless of debt if you want to live in a halfway decent area in a median priced home at 450-500k. It’s pretty sad honestly.

Our first house was 172k in California, in a really bad area but a cute house. Now the minimum entry point for a 3/2 with decent sq footage (1650 sq ft) is around 500-550k in nor cal. When things finally start to turn it’s going to get ugly.


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