Maybe there will be no "correction" to housing market- U.S. housing market's underproduction crisis getting worse
- Thread starter GON
- Start date
A job change of the Wife, caused us to sell and move across the state. We cashed out HUGE and headed west to build our dream house. We bought 23 acres and selected our General Contractor.
Well, well..... 13 months later and we are just breaking ground this week.
GC tells me he is inundated with custom home build requests and he is having to tell people that want $1-$3M homes.... he can start on them in 18-24 months... finished in 3.5 years. He is that backed up and finding Subs is getting harder every day for him.
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Well, well..... 13 months later and we are just breaking ground this week.
GC tells me he is inundated with custom home build requests and he is having to tell people that want $1-$3M homes.... he can start on them in 18-24 months... finished in 3.5 years. He is that backed up and finding Subs is getting harder every day for him.
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Naperville/Bolingbrook off of rt126 and I55 is growing again. Same with Plainfield down by County Line Rd. They're finally starting to construct a road from RT126 south to probably RT30 close to I55 - I'll have to ask our project manager who's in charge of the environmental work. My friend/previous roommate just bought a brand new house down the street for ~$330k last year. It finished building last Nov and he can sell it now for $60k more!
They really need to expand some of these roads. Rt30 is horrible with the amount of traffic it gets from smaller vehicles and trucks.
Non-IT folks are leaving Austin, at least in my circles. They are going to San Antonio, and parts south.
Friends $300k house is now $705k in Austin suburbs.
My old $122k house in Round Rock is now $340k.
Those types of numbers combined with a growing interest rate really hurts the first time homebuyer with no equity from a previous house to put into another one.
Friends $300k house is now $705k in Austin suburbs.
My old $122k house in Round Rock is now $340k.
Those types of numbers combined with a growing interest rate really hurts the first time homebuyer with no equity from a previous house to put into another one.
We have a similar story.... 7 years ago we purchased in the Colorado Springs area for $425k. Last summer we sold for $875k.
Since we are rebuilding in Recession/Inflation, we will be stung, but at least we paid cash for the property, well and electricity and still have $350k to put into the build before we have to borrow a dime. We are building a Ski House/Barn-dominium and hope to do it debt free.
But you are right.... The rising rates and the economy will eliminate first time home-buyers.
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Amazon bought an office building I used to work in, and tore it down to build a data center.
Office building was 6 story built in 1986, right off of 28 in Herndon, VA.
1925 topo map shows it as being paved.
I work for a major flooring company in Colorado doing new homes and it is the same here.
We are struggling to meet install dates.
Materials back ordered and not enough installers,all in all a good problem to have I guess.
I remember the recession years,awful.
That 400k McMansion would be a starter home here if you could fine one. Probably why people are selling their homes here for 500-1 million and moving to cheaper areas. Had a few people sell their 500+ condos here and move to cheaper states like Texas and Florida but they're not a cheap as they used to be, but still cheaper than here and also get 2-3x the space they had here.
It's actually a "mixed use" project.
Same site. It was one of the biggest pour Utah has ever seen.
quote-
According to a release sent to ABC4, “The project took an innovative collaboration between Big-D’s general contracting team and concrete pouring team, to ensure a safe and successful 8,155 yard continuous pour. From planning to completion, this project took roughly 20 hours of planning, 1600 hours of labor, between 70 and 80 Big-D workers on site, and 815 truck pours.”
Huge concrete pour pulled off by local construction company in 20 hours
SALT LAKE CITY (ABC4) – Construction projects can take time. Huge projects almost feel as if they take forever to complete…Well, at least it appears that way when we drive by them. A typical …
www.abc4.com
Tying in with this thread, the Homebuilder Sentiment Index was released today.
www.cnbc.com
Homebuilder sentiment plunges in July as buyers pull back
Homebuilder sentiment fell dramatically in July, as both builders and buyers contend with sky-high inflation.
www.cnbc.com
McMansion sells for more profit per cost of land and construction, the customers they are selling to (upper middle class) has the money to spend. There is no money building affordable housing then having customers bargain you to death calling you a greedy capitalist.
Just like lower middle people would rather buy used pickups and SUVs instead of new econobox for the same money, these McMansion get trickle down as they age and the neighborhood ages, and the school rating goes with them.
The starter homes are the older ones. If all you do is build McMansions, it's still fine because there's also older homes out there that people have moved out of into the McMansions and those end up being starter homes. If you don't build any housing, then there's basically no where else to move. McMansions aren't a function of trickle down like cars. Some neighborhoods get better and stay better, we have several high schools being built that are in the 100-200 million range and those will be around for decades if not a century. Those towns have been desirable for decades and there's not that much change in the school rankings so the towns/cities are still popular. People also update their properties as time goes on, kitchen and bathroom renovations after 10-20 years are common. Usually what happens is that once people hit their 60-70s, they stop updating the place so you do see some old houses that haven't been updated in 30-40 years.
That is not necessarily true in CA. I've been trying to build a custom home since the beginning of covid, in SoCal. The state is quite intentionally making it tough for single fam. homes, with incentives for big projects that involve high density housing. The restrictions/requirements for single fam. houses is ridiculous.
Yes incentives for those big projects that involve high density housing. However, in some locations the incentives require a certain amount of units to be affordable to lower income folks. It is a difficult balancing act to build that type of housing and to make it profitable.
It depends on the neighborhood. Just about any 40-60 year old neighborhood in Manassas, Virginia (suburb of DC) has been on a steady decline for decades.
Go look at a 40-60 year old neighborhood in the western suburbs of Chicago (ie, Glen Ellyn, Wheaton, Elmhurst) and many neighborhoods look better now than they did 30 years ago. My old neighborhood in Elmhurst, they added street lighting and of the few really crappy houses that existed 30 years ago, all have been torn down and replaced with something better.
One difference may be that there's still lots of undeveloped land around Manassas, so there's always the opportunity to buy into a "better" neighborhood with brand-new houses.
And property taxes are based on home value. No way will government allow a big reduction in this income stream. And there's increased sales taxes for higher priced goods, higher income taxes on increased wages, etc. Inflation is the number one magic fix for government budget mismanagement. High housing prices are here to stay unless we have an actual depression with 30% unemployment and food lines, and I don't think anyone wants that.
If people really want to change things, buy what you really need, not what you want at the moment. With respect to housing, why is the usual housing path one of moving up into larger, more expensive homes, incurring more and more debt and higher and higher taxes?
With 70% of our economy based on consumer spending, the consumer holds the keys to the kingdom. They just don't realize it.
Scott
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