If housing prices remained consistent with inflation you'd be able to buy a home in California for 120k.
Imagine, for a second. You buy a starter home after high school working as a secretary for Amtrak or something. 10 years later you have a positive networth. Starting a family in your 20s, is possible.
At 45 the house is paid off, the kids are in college. Your able to put money in your savings. And if you're really lucky you'll be able to watch your grandkids grow up.
That's how things used to work. Not everyone wants a family, but I don't think anyone wants to pay 40% towards rent well into their 50s since they never had a chance to buy a home.
It's a massively complex issue with no clear solution. Liberals are to blame, you need a dozen environmental studies on how you might disturb local caterpillars before building anything.
Conservatives are to blame, Prop 13( CA's fixed property taxes, buy a home for 100k in 1995, you'll pay property taxes on that original value until you move) has horribly distorted property values.
> Prop 13( CA's fixed property taxes, buy a home for 100k in 1995, you'll pay property taxes on that original value until you move)
In the interest of accuracy, Prop 13 doesn't have fixed property taxes. It has (relevant to property taxes):
1. a low cap on property taxes (1% of tax basis value annually)
2. a limit on tax basis value increases outside of sales and other qualifying events (annual increase capped at 2% or the rate of inflation, whichever is less).
I'll remember this going forward. I didn't know the taxes could go up. But the rate of increase is still extremely low relative to home value increases
How much of Zuckerberg's wealth was created from buying up single family homes and renting them out at 10% over what a mortgage cost ?
https://orchard.com/blog/posts/how-much-the-typical-home-cos...
If housing prices remained consistent with inflation you'd be able to buy a home in California for 120k.
Imagine, for a second. You buy a starter home after high school working as a secretary for Amtrak or something. 10 years later you have a positive networth. Starting a family in your 20s, is possible.
At 45 the house is paid off, the kids are in college. Your able to put money in your savings. And if you're really lucky you'll be able to watch your grandkids grow up.
That's how things used to work. Not everyone wants a family, but I don't think anyone wants to pay 40% towards rent well into their 50s since they never had a chance to buy a home.
It's a massively complex issue with no clear solution. Liberals are to blame, you need a dozen environmental studies on how you might disturb local caterpillars before building anything.
Conservatives are to blame, Prop 13( CA's fixed property taxes, buy a home for 100k in 1995, you'll pay property taxes on that original value until you move) has horribly distorted property values.