30% of Phoenix are homes are now sold to investors. They are really going after homes in the sunbelt states.
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I think most of the people buying are people upgrading their current homesā¦ versus first time home buyers who are struggling to come up with enough of a down payment. People who are getting a ton of equity out of their home with how homes are valued right now and using it towards purchasing something more expensive.
I actually want to buy a new home. I can afford to buy a new home in this market. Butā¦ Should I? No, I feel as though I shouldnāt. Sure, Iād make a ton of profit on selling my house, but Iād be immensely overpaying for another house. And even if these house prices are here to stay, I can always sell mine for a profit later and buy then. I feel as though Iām better off waiting for this hopeful bubble to burst.
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I started college as a music major. Every summer I would work temp jobs as a secretary or similar position. I lost count of the number of people with music degrees I met at these places working dead end jobs that at least put food on the table. I realized that though I was really good, I wasnāt good enough to make a decent living at it. I switched to education and later got a nursing degree. None of my choices pays all that great, but I donāt think I ever could have made a go of it as a musician.
Iām extremely fortunate that the man I married with little $ to his name eventually became quite the earner. I would not have the standard of living I now enjoy if not for him. I have no regrets at working in a service oriented profession, but Iām also not complaining about his career that is more sales oriented. I really feel for young people right now who dream of owning their own home.
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There are many reports that list characteristics of home buyers, such as https://www.nar.realtor/sites/default/files/documents/2021-home-buyers-and-sellers-generational-trends-03-16-2021.pdf . Some examples stats are below:
- 2% <= age 21, 16% <= age 30, Median ~= age 47
- Median income overall = $96k, Age 22-30: Median income = $80k
- 71% couples, ,Age 22-30: 71% couples (51% married, 20% not married)
- 69% have BA/BS or higher, Age 22-30: 77% have BA/BS or higher
- 31% first time buyers, Age 22-30: 82% first time buyer
- Median price of home = $272k, Age 22-30: Median price = $229k
- Median sale = 99% of asking (both age groups)
- Median sqft = 1900, Age 22-30: Median sqft = 1650
- Median bed bath = 3 bedroom / 2 bathroom (both age groups)
Note that the median home sale was $272k. Most home buyers were couples. Iād expect many 2-income families can afford a home in this range. Among younger persons, the median home sale price dropped to $229k and sqft dropped to 1650, which fits with the typically lower income among younger persons.
High cost of living areas seem to be overrpresented on this forum ā both among parents and young persons. Iām sure young persons living in Silicon Valley, Manhattan, or other very high cost of living area would have very different stats. However, this group represents only a small minority of overall home buyers, so it doesnāt have a large impact on the overall medians.
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Thatās an excellent point. The discrepancy is most dramatic when looked at in a US county map - County Median Home Prices and Monthly Mortgage Payment Of course there are usually MANY more people per county in some of those pricier areas.
There is for some apartments. I live in Bay Ridge, Brooklyn and my apartment falls under rent stabilization. $2150 for 2 bedrooms.
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How does the rent stabilization system work? Could someone coming into the city for the first time get into one of these apartments?
Hereās an explanation of rent stabilzation:
https://www.brownstoner.com/guides/apartment-home-types/rent-stabilized-apartment/
I live in Bay Ridge, Brooklyn which is not far from lower Manhattan or midtown on the subway. I found my apartment on Streeteasy and the broker who had the listing brought me to see it. This was in 3/20 when everything in the city was crazy due to Covid. I really like the broker and if anyone wants her contact information, PM me.
Wow, sounds pleasant. College town. Only 3 hours from NYC. The weather seems not too bad. I could be happy there.
Itās a very depressed urban area, unfortunately. Some nice suburbs though.
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Only 3 hours from NYC can mean different thingsā¦
A family member of mine lives about 1 1/2 -2 hours from Boston. Great bus service to the city (stop at Logan Airport) so itās great. OTOH the area H and I were raised in (and all of his family still live) is about 1 1/2 - 2 hours from Chicago and there is no public transportation to the city or to eithe3r of the Chicago airports. Huge difference.
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Iāve lived in the Binghamton area. At the time it was nice, though the weather was known to be dreary. I never really thought of it as a college town, though SUNY Binghamton is fairly large. I think we figured about 4 hours from NYC, but with a bunch of friends we did once rent a big van to do a (very long) day trip.
Since we left almost 30 years ago, it has supposedly increased a lot in crime etc. From Google search, ā With a crime rate of 49 per one thousand residents , Binghamton has one of the highest crime rates in America compared to all communities of all sizes - from the smallest towns to the very largest cities. Oneās chance of becoming a victim of either violent or property crime here is one in 20.ā To be honest, I am unfamiliar with that kind of stat so canāt compare.
Not many jobs there anymore, but it could make an affordable area for retirement (or maybe Work From Home location?). Property taxes are pretty high, but that could be OK if you got a good deal on purchase.
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Thank you.
As of today, all three of my kids are housed for the next year 
Lots of transitions and uncertainties along the way. All 3 in high rent areas but itās doable with roommates, even through 30ās.
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Looks like some young people, including Coloradans, are taking advantage of this program encouraging move to Tulsa - https://www.bizjournals.com/denver/news/2022/05/27/remote-work-office-tech-denver-tulsa.html?csrc=6398&utm_campaign=trueAnthem%3A%20Trending%20Content&utm_medium=trueAnthem&utm_source=facebook&fbclid=IwAR0Pi5wy3ltpTVQhZ0ZUs-Z_nD9ZnyDkx-9VMUnEPHlAy4vqJUKfUwVDgjs
H and I didnāt buy until our early 30ās. But then again, I live in an area where people get married and have kids in their late 20ās, early to mid 30ās.
I know a retired couple who bought a house in a real cheap rural area. But, one reason real estate is so cheap is because there are so few high paying jobs in the area or as I should say, few jobs period. Itās an area that used to have a timber industry, but that went under. Now the area has a lot of second homes. Great for retirees, but not so great for new grads. One thing to keep in mind, is the area so cheap because there arenāt a lot of good jobs?
My stepfather lives in Reno and itās like that there. His lady friendās nephew was trying to buy and he kept getting outbid by cash buyers or investment companies. My nephew who lives in Reno rents a room in a house owned by a tech employee who lives in the Bay area and owns 4 other homes in the area.
Thatās too bad, But I wouldnāt assume all renters donāt care about their homes. D rents a room in a house and her house is one of the better of looking ones in the neighborhood. She and her roommates care about keeping it looking nice. It also helps that her landlord pays for a gardener and just had the house painted. My nephew who rents in Reno, lives in a neighborhood where the HOA takes care of the upkeep for the front yard. One of the worst looking houses in our neighborhood has owners whoāve lived there for about 15 years, they just donāt care, even though they own the house. They have a dumpy van parked in front too. Then again, we only have one house owned by renters on our street and they keep it looking great! Theyāre a young environmentally conscious couple and their landlord let them do xeriscape in the front with native plants. It really looks good and it means the landlord has to pay less for irrigation. Then again, they love gardening so they like spending time keeping the yard looking nice. One of our neighbors knows their landlord and says heās super strict about who he rents to and is very strict about the upkeep of the house, so that helps. And we donāt live near a university so any renters in our area would be older professionals and not 20 year olds. We do have a lot of apartments nearby, so maybe the younger ones live there? Iām sure it is different if youāre near a university.
thatās too bad, but maybe theyāre not interested in staying in the area? My D is registered to vote in the area she rents in, but then again she is planning on staying thereā¦
In my experience, the prices seem to fluctuate based on proximity to cities (jobs maybe?) and access to good schoolsā¦ however right now, things are justā¦ weird.
Example: My house in my school district would probably sell for $300k-$350 right now (a 900 sq ft one up the street just sold for $250, a 800 sq ft one just sold for $250 and mine is 1600 sq ft and nicer inside).
I paid $150 13 years ago when the market had crashed, so this figure just blows my mind.
However, if I go < 1 mile up the street, Iām now in a different school district, and itās historically entirely different. Houses are usually 30-100k less there for comparable homes. I just looked up one that looks similar to the smaller ones on my street and a 1200 sq ft home sold for $215. Same jobs available there as here.
Thank you! This link is super helpful.
In my experience, it is the job of the landlord, not the renter, to keep up the roof, the yard, the exterior paint and so on. Too many landlords try to save money on their properties by neglecting upkeep.
There are actually many things a tenant is not even allowed to do in terms of upkeep, as often stated in the leaseā¦
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