this post was submitted on 08 Feb 2024
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We need some 1500sqft 2br/2ba homes near major metro areas for under 400k. In today’s economy that would be achievable for most people.
The only options near major cities are 2500+sqft homes or 650sqft condos going for $700k+.
I don’t think I have ever seen a 2br/2ba detached home… it’s either shoebox condos or 4+ bedrooms going for the same ridiculous 700k+ price tag.
The missing middle. The last city I lived in had a bunch of houses in the 1200sqft 2br/1ba range but they were built before 1950 and are now in the "historic" part of town that is zoned to prevent redevelopment. It's also the closest to the city center where many jobs are located and events like festivals take place. So it's a very desirable place to live and houses here sell for $1M+.
The next ring out from the historic district was built between the 50s and early 2000s and is largely 2000+sqft homes on larger plots of land. Large plots of land are desirable so those go for $800k+.
After the 2008 financial crisis we started building our third ring of housing with humongous "luxury" houses with 6+br. They're on tiny plots of land with maybe 6ft separating the houses, but since they have large sqft, granite countertops, and faux marble tiles in the bathroom they go for $700k+.
Oh yeah and housing has been underbuilt since the 1970s so the vacancy rate is under 1%, and it's a smaller city (~200,000 people) so the job opportunities aren't plentiful and the best paying. I have no idea how so many of these houses are being paid for. I bet a lot of people that have bought since 2010 are house poor. Or a lot of them are cruising on super low interest rates.
That's by design.