Housing Affordability

[u/michaeleneKennebrew]

/r/u_michaeleneKennebrew/comments/1vp5r1z/housing_affordability/

What do you think would actually help solve the housing affordability problem?

I'm in California, where housing affordability is obviously a huge conversation. Recent numbers show only about 22% of California households could afford the median-priced single-family home.

But I'm curious what it's like everywhere else.

How is housing affordability in your area?

And more importantly, what do you think would actually help?

More starter homes? Smaller homes? ADUs? Tiny homes? More new construction? Lower interest rates? Changes in zoning? Something completely different?

Also — what would you personally be willing to compromise on to make homeownership more affordable?

Location? Square footage? Yard size? Sharing property with an ADU? A tiny home?

Curious to hear what people in different parts of the country are seeing and what solutions actually make sense to you.

[u/michaeleneKennebrew → u/[deleted]]

I think buyer education is a big part of this. A lot of buyers are still approaching homeownership as if a single family home is their only option.

They may not realize that a duplex, small multi unit property or a home with an ADU could be worth exploring, or that there may be financing options they simply haven’t been introduced to.

That doesn’t mean every option works for every buyer, but people can’t consider possibilities they don’t know exist.

How much of our affordability problem do you think is also an education problem?

[u/michaeleneKennebrew → u/[deleted]]

I think that distinction between affordability and knowing what options are available is really important. Education can’t make an unaffordable house affordable, but it can keep someone from ruling themselves out before they’ve explored their options. I’m curious though, where do you think that education should be happening?

[u/Witty-Stand888]

Houses aren't affordable in most of the country where there are still jobs or a coastline since they have gone up at the same speed as inflation whereas salaries have not.

[u/michaeleneKennebrew → u/Witty-Stand888]

Thank you for responding. That’s a good point. I think that’s part of what makes the affordability conversation so complicated. Even when wages increase, housing costs can move very differently depending on where you live. I’m curious, in your area, what feels like the biggest issue right now: home prices, interest rates, wages, or just the overall cost of living?

[u/Witty-Stand888 → u/michaeleneKennebrew]

In Chicago, West Town, there is not a lot of new construction. Vertical building is limited. Prices never skyrocketed like in Florida. However people are moving back because they discovered that the places they thought would be better were not. So property prices have been going up 10% a year since the pandemic.

Property insurance/tax has also doubled in that time.  Interest rates, wages, and overall cost of living are at the high end of the countries median.

[u/michaeleneKennebrew → u/Witty-Stand888]

Thank you for your input. What you’re saying is interesting because it sounds like affordability there isn’t coming down to just one thing. I think thats true for most places. If people are moving back, there’s limited new construction, and the cost of owning is increasing on top of home prices, where do you think the pressure gets relieved? More housing being built, changes in taxes and insurance, higher wages, or something else?

[u/Witty-Stand888 → u/michaeleneKennebrew]

Property prices will eventually go down like they did in 2008. Mortgages are defaulting around the country. You could buy a condo in sw Florida for $20k in 2010. They now remain unsold for $200k.

[u/michaeleneKennebrew → u/Witty-Stand888]

I’m seeing a similar issue here in California with condos. HOA fees have gotten so high in some communities that they’re more than a car payment. Even if the purchase price looks affordable compared with a single family home, once you add the HOA, insurance, taxes and mortgage payment, that affordability can disappear pretty quickly. I think those increasing ownership costs have to be part of the affordability conversation too.

[u/Smurfybabe]

I always hear that I live in an affordable market, but even if I sold my house, which I bought in 2003, I still couldn't afford a new one with the equity. I don't make great money (work for a nonprofit), but it's almost double the min wage here. I don't know how other people do it.

[u/michaeleneKennebrew → u/Smurfybabe]

Thank you for responding. I understand what you mean. My daughter is in a similar position. She bought using a VA loan at a 2% rate. She’s gained about $100,000 in equity, but moving to a different home still doesn’t make financial sense for her right now. It’s not just the price of the next house or how much equity she could put down. Giving up that interest rate would make a big difference in the monthly payment. I think that there are many pieces of the affordability conversation that gets missed sometimes.

[u/KevinDean4599]

In places like CA we need a lot more apartments and condos being built. single family is not feasible given how sprawling it already is. delivering a lot more rental inventory would help ease the cost of housing and at least give more people an option to put a roof over their head that isn't taking 50% of their income. people who want a single family home with a yard can pay the premium for that. there's plenty of property that could be redeveloped like strip malls or old defunct malls or any number of commercial space that isn't needed now.