It’s a normal-ass 1960’s neighborhood that your parents would have paid normal-ass prices for. The job market here exploded over the last 20 years, so there’s just too many people and not enough land. I’m one of those people, so it’s not like I don’t contribute to the problem.
There are neither too many people nor not enough land, but too many houses from the 60s passed down with initial property tax values and too many NIMBYs preventing new construction of large apartment buildings.
There are tons of big skyrise apartment complexes and dozens more in the works. But they all get labeled “luxury apartments”, despite basically being tiny little rectangles with no windows except for a sliding glass door at the end, and they cost just as much as a house to rent. The more traditional apartments have mostly been converted to condos and they’re also very expensive. It’s just crazy expensive here, despite your choices! Lots of people commute for over an hour each way and then it’s still a half million dollars for a decent house. You have to live at least an hour and a half in the right direction to get something for less.
People live in worse apartments they can afford, so they buy a luxury apartment. Their apartment is now open to a person who could afford that apartment, but not the luxury apartment, so theirs gets filled. This repeats down the chain of quality/desirability/cost.
Every new apartment adds supply, thus adding negative price pressure.
Where in the world is this?
Also, is that a high-end neighborhood or a middle-class/lower class neighborhood?
It’s a normal-ass 1960’s neighborhood that your parents would have paid normal-ass prices for. The job market here exploded over the last 20 years, so there’s just too many people and not enough land. I’m one of those people, so it’s not like I don’t contribute to the problem.
There are neither too many people nor not enough land, but too many houses from the 60s passed down with initial property tax values and too many NIMBYs preventing new construction of large apartment buildings.
There are tons of big skyrise apartment complexes and dozens more in the works. But they all get labeled “luxury apartments”, despite basically being tiny little rectangles with no windows except for a sliding glass door at the end, and they cost just as much as a house to rent. The more traditional apartments have mostly been converted to condos and they’re also very expensive. It’s just crazy expensive here, despite your choices! Lots of people commute for over an hour each way and then it’s still a half million dollars for a decent house. You have to live at least an hour and a half in the right direction to get something for less.
People live in worse apartments they can afford, so they buy a luxury apartment. Their apartment is now open to a person who could afford that apartment, but not the luxury apartment, so theirs gets filled. This repeats down the chain of quality/desirability/cost.
Every new apartment adds supply, thus adding negative price pressure.
My family house that we sold recently, sold for $1.2 million. It was bought in 94 for $90k. Expensive town, but the cheapest neighborhood in the town.
Average SFH price in many west coast cities is approaching 1M. 990k on average for my city