this post was submitted on 27 Jul 2024
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Back before 2005 houses were like between 75k and 500k. After 2005 houses never went back to those prices. In a crash people don't magically get to buy a bunch of houses. Instead, companies snap up anyone's houses that seem to be below market. So the price stays and it's unaffordable.
I honestly don't know if I understand how any of your points string together to make an argument. "Between 75K and 500K" is such a range as to be meaningless. Home prices vary with individual housing markets in addition to the national market. There hasn't been a "crash" since 2008, and around that time, it was pretty universally a buyer's market, and a ton of people bought homes for themselves. The affordability issue really didn't become a thing until after COVID, and it's already trending back down
My parents bought their house in 1998 for 75k in Sandy San Diego near downtown. I bought mine in 2005 for 500k near sandy San Diego. I then bought a second place for 475k up in Irvine. All were 3 bedrooms, two bathrooms. The first two houses were from the1920s. The last one made in the 80's. I hope that makes it clear. I sold my California homes and moved to rainy Seattle and was lucky to find a house for 550k in 2019. I left the California market when the Seattle market started getting too crazy too. In just these 5 years the price of my old homes according to Zillow has gone past the 1 million mark. One is 1.2 million, the other is 1.1mil. imagine that! In 5 years there's no fuckin way I could just rebuy my old houses. So for anyone out there trying to move, do what I did and save first, buy before selling, and calculate for the worse possible outcome. That will get you a realistic baseline... think of everyone involved as little fucking money sharks, the contractor 10k, the buying agent, 30k, the bank 30k, etc etc.
If you sell, your run the real risk that your entry money goes stale and you'll be unable to afford the house you used to live in.
Yes, houses cost way more in the most desirable metros in the entire country, that also aren't building supply to meet demand. Your experience is not the same as the experience of the vast majority of the US. I guess overall I don't understand your point though, or how it relates to this conversation.