this post was submitted on 16 Aug 2023
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I would expect that in the expensive towns, but not in all towns. Your basic supply and demand situation.
While it’s not quite as much, I’m in what was once the cheapest town within 30 miles in any direction, and our housing prices have gone up 800% in the last 20 years, compared to the 1000% in the other city I mentioned.
Rental prices are up about 1000% since then too. My first apartment was $400/mo in the early 2000s. That same apartment is now $3500/mo, and it hasn’t even been renovated.
Well that's a long range of time to not expect housing prices to go up as there's a population increase and more demand for the housing.
Is 1000% a reasonable increase to you over 20 years? If wages had gone up similarly, I might agree. It’s pretty clear to me that communities prioritize high earning tax bases over their existing citizenry in nearly every situation, and in doing so, purposefully or not, they impoverish those citizens and disempower them from the possibility of advocating for change, as now they have to work so much there’s never any time to go to city council meetings or engage in active governance.
The average Gen Z, nationwide, pays over 50% of their income to rent. Its unsustainable, as evidenced by the insane increase in people experiencing homelessness over the last 5 years. My state had a nearly 40% increase last year alone, and a majority of our unhoused people work full time jobs, and a larger majority have lived here their whole life, contrary to the perceived narrative of people “moving here to be homeless”, which is absurd.
You're getting argumentative with me like I'm the one who invented Capitalism.
Depends in relation to the prices of everything else over that same 20 years time frame.
All I'm saying is that prices go up over time, if for no other reason than just inflation. But supply and demand has a big part of raising prices even higher, more quickly. To act surprised that properties in high demand areas are more expensive now than before just seems unrealistic/uninformed to me.
Now what the solution to this is I don't know, I'm not an economist. A conversation can be had as to if the government should enact laws of price control for the sale of homes and attach that to some floating marker like the rate of inflation, etc. Or to pass laws to make sure minimum wages offered by any company to their employees can allow someone to afford the purchase of a home with unregulated sales pricing. But you got to vote people in office who would want to pass those kind of laws to get that.