re: Homebuyers are now spending 40% of their gross income on mortgage and interest costs

I’m at 7.8% of my salary on property taxes and P&I. We did lock in a 30-year at 2.75%.

We closed on a new long term home a couple months ago and PITI is right at 21% of gross. Pretty reasonable with a 6% rate.

Unfortunately, we are part of this group (not into the 40% levels). We bought a house earlier in the year and are eagerly waiting to refinance in a few years. Housing is still strong in the the DFW area and I don’t think it will significantly drop in the next few years since the market has been resilient despite high interest rates. The core issue is a housing shortage with folks with low interest rates from Covid not wanting to sell. WSJ had a great article from last week discussing the dynamic of new home buyers opting for new builds with home builders offering rate buy downs to help folks get into homes. I don’t think there’s much comparison to 2008 as these are completely different markets with different dynamics. Just my 2 cents.

This is why high speed rail could be part of the solution for places like Texas. Allow people to spread out to lower cost areas

Finally starting my real job in September

I have no qualms renting for the next few years and letting things shake out

I couldn’t imagine having most of my income going towards a mortgage payment and property taxes and homeowners insurance and upkeep

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In other words, your feelings. Get ready to be surprised.

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That student loan payments resuming will have little to no economic impact?

When I moved, I paid cash for the cheapest, most original, livable fixer there was on the market. I'm old so will have to pay for the fixing but paid under 40k and it would appraise at over 240k when done according to the home owners ins co.

1920 Craftsman. 10' ceilings, hardwood floors, claw foot tub; bead board walls and ceilings.

A lot of house for the money. Some sweat equity involved. More younger people should look at fixers and do the work. This is my last fixer of 5 and I more than quadrupled my money when I sold the others.

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Leave high-cost of living areas.

You can buy a house in Louisiana for 150k that’s 1.4 million in the Bay Area.

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In 2014 my In-Laws sold there 4br/2ba 2300 sq.ft. 45y.o. brick home with small yard that needed updating in at least half of the sq. footage in Orange County, Ca. for 1.4 million and purchased in Carriere, Ms. a 2800 sq. ft. 4br/2.5ba 3 y.o. brick home on a huge lot in a very nice subdivision for $365k. Gas in Los Angeles was running as high as $5.32 gal recently. This time last year it was running as high as $6.50 gal. I wish I could find the photo my nephew sent me with that displayed price. It was the first time in his 9 years of residence in L.A. that he considered moving back to the south. Hard headed young man.

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A negative one. Plenty of people haven't had to pay one of their largest bills for 3 years. I'm sure some people were responsible and realized that wasn't likely to last, but I also think many were not.

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There are a lot of idiots out there that run up MORE debt because they thought the student loans weren't coming back - more expensive cars, bought bigger homes or first time homes, more credit card debt, etc. That big student loan payment coming back is going to kick a lot of people in the teeth and it's their own fault.

We also have record high numbers of multi family units under construction currently…until the cap rate on those disappears.