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With housing costs exploding...what is next trend in homebuilding?

Posted on 10/31/21 at 9:44 am
Posted by ApexTiger
cary nc
Member since Oct 2003
53771 posts
Posted on 10/31/21 at 9:44 am
1. Larger homes so more family members can live under one roof? 2 or more paying the mortgage.

2. or Tiny homes?

3. More renting? Black Rock has already acquired 9 Trillion in assets

Black Rock is buying up entire subdivisions above asking price with the intention of renting to the middle class.

with land so expensive, it's hard to get the small home idea to work.

if more HOA's allowed a separate building unattached to the main structure this would perhaps work so there is some independence/separation.


what makes the most sense?

35 years ago we had interest rates north of 10%...

now we're 3%, that's the good news if there is any

curious if anyone has given this some thought?
Posted by Chromdome35
NW Arkansas
Member since Nov 2010
6834 posts
Posted on 10/31/21 at 9:45 am to
Interest rates probably won't stay low much longer during an inflationary period
Posted by Ag Zwin
Member since Mar 2016
19943 posts
Posted on 10/31/21 at 9:46 am to
Move away from cities that are overpriced and into smaller ones with better value and quality of life.

Sioux Falls, Boise, etc.
Posted by goatmilker
Castle Anthrax
Member since Feb 2009
64325 posts
Posted on 10/31/21 at 9:46 am to
Posted by olemc999
At a blackjack table
Member since Oct 2010
13263 posts
Posted on 10/31/21 at 9:47 am to
I’m not bullshitting here. RVs.
Posted by TrueTiger
Chicken's most valuable
Member since Sep 2004
67866 posts
Posted on 10/31/21 at 9:49 am to
quote:

what makes the most sense?


Posted by NPComb
Member since Jan 2019
27348 posts
Posted on 10/31/21 at 9:50 am to
- Apartments moved into subdivisions
- outlawing HOAs to rid of single family home neighborhoods; they will deem this act under the ruse of it being racist
- reduced housing size like in the EU
Posted by Turbotoes
Clown world
Member since Dec 2020
218 posts
Posted on 10/31/21 at 9:51 am to
quote:

now we're 3%, that's the good news if there is any



Not good news at all. It skews the costs of ownership greatly. It punishes savers at the expense of consumers. A great deal of society's sickness is boosted by easy cheap financing.
Posted by fjlee90
Baton Rouge
Member since Nov 2016
7835 posts
Posted on 10/31/21 at 9:51 am to
The fed will have to raise rates to curb inflation and get bad money off the market.

When this is done the housing bubble will pop. Prices will drop sharply since people can’t afford the amount of house they originally could.

Get ready for 8-10% interest on new mortgage.

Couple the interest rate hike with bad economic policy, get ready for stagflation.
Posted by Big Gorilla
Bossier City
Member since Oct 2020
5454 posts
Posted on 10/31/21 at 9:52 am to
From what we have seen from our dem leaders (mayors) tent cities are the future.
This post was edited on 10/31/21 at 9:58 am
Posted by pjab
Member since Mar 2016
5646 posts
Posted on 10/31/21 at 9:53 am to
Two near term things:
- Midsized cities will attract people looking for value
- Zoning changes in large cities. More ADUs and higher density in general.
Posted by MeatCleaverWeaver
Member since Oct 2013
22175 posts
Posted on 10/31/21 at 9:53 am to
quote:

Move away from cities that are overpriced and into smaller ones with better value and quality of life.



A couple from California just bought my bro-in-law’s house without seeing it in person. $550,000 for a 3000 sq foot remodeled house on 100 acres and 2 pristine ponds. They had to think they were getting away with highway robbery by California standards. I would suggest to anyone in rural America to jack the heck out of the price - make it unaffordable by local standards and see if you get a bite from an interloper. He probably could’ve gotten double that from them without them batting their eyes.
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
73571 posts
Posted on 10/31/21 at 9:54 am to
quote:

35 years ago we had interest rates north of 10%...

now we're 3%,


What were home values when rates were 10%

Posted by BamaCoaster
God's Gulf
Member since Apr 2016
5261 posts
Posted on 10/31/21 at 9:55 am to
quote:

The fed will have to raise rates to curb inflation and get bad money off the market.


This will never, ever, ever happen.
Fed will never raise rates again.
Posted by Bass Tiger
Member since Oct 2014
46041 posts
Posted on 10/31/21 at 9:56 am to
I can tell you in the KC metro it’s 90% large multi unit apartment complexes. Most of these developments are at minimum 500-1000 units with some retail and leisure components as part of the project. The cheap money has pushed single family home prices through the roof and the big Real estate investment corporations have stepped in to fill the gap with these huge multi unit apartment complexes. What’s also messed up is upwards of 20% of single family home sales are being bought by real estate investment companies which also helps to inflate single family home prices and that conveniently drives people to their large multi unit apartment complexes…..lol!
Posted by Dawgfanman
Member since Jun 2015
22345 posts
Posted on 10/31/21 at 9:57 am to
50 year mortgages
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
73571 posts
Posted on 10/31/21 at 9:57 am to
quote:

This will never, ever, ever happen.
Fed will never raise rates again.



They are going raise them end of the year
Posted by fjlee90
Baton Rouge
Member since Nov 2016
7835 posts
Posted on 10/31/21 at 9:58 am to
I’ve decided that when I sell I will not use a realtor and have direct interaction with the buyer.

At which point in time my price reflects the buyer.

If someone dba Blackrock wants to buy the property, I either won’t sell or I’ll sell 5-7 times market value to see if they’ll bite.

Coming from California? Price doubles.
Posted by CAD703X
Liberty Island
Member since Jul 2008
78042 posts
Posted on 10/31/21 at 10:00 am to
Housing is a safe bet against it-of-control inflation.

With money being ruined by Brandon the 500k in your 401k might only be worth 75k in buying power.. Who knows where it's going?

Your land will always be valuable so it doesn't matter if you're house is worth 500k or 10 million because money is fricked. You'll always have an asset that rides the waves and you'll always have a place to lay your head at night.

Id rather have a great piece of land than gold or crypto.
This post was edited on 10/31/21 at 10:01 am
Posted by ApexTiger
cary nc
Member since Oct 2003
53771 posts
Posted on 10/31/21 at 10:01 am to
quote:

A great deal of society's sickness is boosted by easy cheap financing.


I see your argument but why should we allow Big Banks to profit off us unfairly?

big banks can leverage their holdings by a piece of paper...

10k on hand to loan or fund 100k?

I guess there is a sweet spot somewhere on rates...dunno, way above my understanding how rates are determined



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