News @lemmy.world MicroWave @lemmy.world 4 mo. ago

A $1 million starter home is now the norm in more than 200 US cities

www.cnn.com A $1 million starter home is now the norm in more than 200 US cities | CNN Business

The number of US cities where first-time homebuyers are faced with at least a $1 million price tag on the average entry-level home has nearly tripled in the past five years, according to new research.

A Thursday report from Zillow indicates that a typical starter home is now worth $1 million or more in 237 cities, up from 84 cities in 2019, underscoring America’s ongoing home affordability crisis.

“Affordability has been strained across the board,” Orphe Divounguy, a senior economist at Zillow, said. “We see the largest number of million-dollar starter homes in expensive coastal markets. We see them in markets with very low homeownership rates and we see them in markets with more building regulations.”

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Precovid houses I could afford with a weeks pay. Now it's the whole pay check. Ridiculous. Wanna fix the birth rate fix this. I'm tired of being born at the wrong time for everything. It's always some bs.
A side effect of sky rocketing housing prices is the annual tax liability also goes up, so people on a low or fixed income may no longer be able to afford the home they've lived in for decades. It's the same problem that happens when neighborhoods are gentrified.
Most homes are simply out of reach for most Americans at this point, particularly if you live in a city. Even renting one is extremely expensive unless you move into a smaller town.
20 years ago, my mother bought a house for just under 50k. Houses in my hometown, of the same rough location and type, now go for 4x that.

Insane that housing prices have outpaced inflation by such a ludicrous degree. It's almost like the system is broken, the ultra-rich and corporations have found all the good tricks and loopholes and are exploiting them to the detriment of both ordinary citizens and the nation as a whole.
where did all this extra money come from to pay for these homes at these rates?
California?

(checks notes)

More than 100 of the 200 are in California. :) Next closest is New York at 31.

Seems like a mostly California problem.
Why would Trudeau do this to the USA

Pierre Poilievre... Probably
Good news and bad news...

Good news is everyone in the Middle Class is a millionaire!

Bad news is there is no middle class anymore.
"A Thursday report from Zillow... "

Fuck you Zillow! You are mostly at fault as to why the housing market is such shit
I'm wondering what a "starter home" is in this case.

For me that'd be about 40sqm and 150k €

Are people buying bigger homes than they need?
Starter home? This is a finisher home! A dwelling of gods, THE GOLDEN GOD
Nobody knows what a "starter home" is anymore anyway. Sellers play them all up through the roof anymore
This smells like bullshit. I mean, if they define "Beverly Hills" as a city, I can see where it might be literally true, but I wouldn't call even the cheapest house in Beverly Hills, Scarsdale, or Paradise Valley a "starter" home. There's homes in the LA, New York, and Phoenix metros under $3-400k, if you're not so choosy about the neighborhood.
If that's even true, then that only means that most people can afford it. If nobody could afford it, then the prices wouldn't be this high.

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