Housing prices are outrageous.

[onthebogeytrain]

My wife and I stumbled across the opportunity to rent a family friend's house for a very reasonable rate while they are living in a different state. They were almost certainly making no money off us, it is a bargain for the quality of the home. We were hoping to use the time to save up for a while toward a new house. We just moved in December. They just informed us they are selling it, which was completely unexpected to us. They gave no indication that was even a possibility. We asked about signing a lease at the time, and they, being family friends, just said no don't worry about it (which makes a lot more sense now).

 

Anyhoo, we are stuck having to move again having sold our previous house to move into this one. And housing prices. ARE. NUTS. It is just absurd what meager houses are going for these days and how little we can afford as a married couple with decent jobs. Well that's it, just got on here to vent and see if anyone else is dealing with the same thing.

[AtomicJoe]

Just pull yourself up by your bootstraps! Why I bought my first house when I was 17 and paid it off in 6 months working my paper route and bagging groceries all while raising a family of 8! If only you’d stop buying all those lattes and avocado toast! 

etc.. 

 

yeah the state of the economy is maddening. Not to mention how little your money is actually worth. It’s amazing how much the true cost of a home as compared to one’s income has skyrocketed… not just the base price. 

[Petethreeput]

Wait until you finally put in an offer and request an inspection.  First off, if it's a popular place (city or neighborhood), owners don't do inspections. Second, paying asking price isn't enough either.

 

Depending on the economist, the US has a shortage of 3,000,000-5,000,000 homes and then those REITs who are buying them up with cash knowing they will appreciate because of the dearth of housing.  The large home companies are buying without inspection and with cash, at least in my area it still happens.

 

 

[Nickb333]

Location? 

[onthebogeytrain]

1 hour ago, Nickb333 said:

Location? 

NE South Dakota

[Pnwpingi210]

2 hours ago, onthebogeytrain said:

NE South Dakota

Uh…..don’t look at prices in the northeast, coasts, or even the Midwest if you think the prices you are seeing are bad

[onthebogeytrain]

1 hour ago, Pnwpingi210 said:

Uh…..don’t look at prices in the northeast, coasts, or even the Midwest if you think the prices you are seeing are bad

I'm aware. Notice I didn't say "why are housing prices so bad only where I live"  

[Pnwpingi210]

1 minute ago, onthebogeytrain said:

I'm aware. Notice I didn't say "why are housing prices so bad only where I live"  

Ha.  I realize it’s relative.  

[Petethreeput]

36 minutes ago, onthebogeytrain said:

I'm aware. Notice I didn't say "why are housing prices so bad only where I live"  

I have to say, the conglomerates and remote workers are moving to areas with low house prices based on what was a local economy and driving them through the roof, and SD certainly qualifies.  Just like here in MT.  Those tied to the MT economy can't afford housing because of the mass exodus of people moving in.  In fact, there was a brief moment when average Bozeman, MT prices were higher than Seattle.

 

Glad I got my house before the internet migration because there is no way I could afford, nor would want to afford my current home.

[Nickb333]

6 hours ago, onthebogeytrain said:

NE South Dakota

Watertown? 
 

While a huge swath of the country would consider South Dakota very affordable, I get that things are relative. 
 

I think the other issues you may have are lack of new construction and interest rates. A lot of people refinanced at very low rates not long ago. The majority simply will not move and give up their current low rate. Lack of new construction just adds to the problem. 
 

I just saw a news report about AZ starting to add quite a few small developments with homes well under $400,000. Hopefully for you, builders like that will expand nationwide and help folks move up and create an increase in inventory. 
 

We’re in CA now. I’ve seen nothing livable around us under $650,000 for a long long time. We are 8 miles from the coast though. So yeah, location location location. 
 

(born in Sioux Falls btw) 

 

Best of luck. Seriously consider lowering your expectations until you find something affordable regardless of the area. (Within reason of course. You can’t jeopardize your family’s safety) 

[onthebogeytrain]

16 hours ago, Pnwpingi210 said:

Ha.  I realize it’s relative.  

Right. My wife is a nurse. Avg nursing salary in some states is almost double what it is here.

[Mych]

We were very fortunate to find our "dream" home a few years ago and lock in super low interest rates, because I couldn't imagine looking to buy right now. The rental companies have bought up anything affordable with cash offers above market value. When we found our home, we toured the house and made an full asking price offer within 8 hours of it being posted for sale. We were hoping to get a quick acceptance and get them to cancel the open house so we wouldn't end up in a bidding war. We ended up competing against two other bidders and increased our initial offer by about $20k which we didn't think would be enough, but we got it.

 

When we bought, one of the saving graces was that we were using a bridge-loan lender (Knock) so we didn't have to put our old house on the market until after we bought and had moved into the new house. It made the process of moving and preparing the old house for sale so much less stressful and gave us time to shop around and find the right house for a price we could handle. I really don't ever want to have to buy a house or move again, but living in a coastal area our homeowner's and flood insurance increases may eventually force us to sell and move again (hopefully not soon though). 

 

Good luck! It's tough out there. Keep searching constantly and be ready to pounce. I've known a couple of people to live the RV life for a while during their house hunt also, so don't be afraid to think outside of the box and find something that puts you in control of your short-term situation until you find your long-term option. Also, go out and drive areas you're interested in. Some people who locked in super low interest rates are offering lease-to-own (owner-financed). They're basically giving people 6+% interest rates on a higher sale price and using that to pay off their sub-3% loan, so they're becoming their own mini-bank. You may not see those posted on the MLS. There are two owners offering that in my neighborhood currently and neither of them have their houses posted anywhere but Zillow. 

Edited April 10 by Mych

[ChaosTheory]

Usually when home prices or rates are too high, it makes more sense to rent.  I know it feels like flushing money down the drain.  And you’d like to put down roots.  But it’s nothing compared to buying at the peak and then having a big correction wipe you out.  Which happened in the 00’s.

[Pnwpingi210]

4 hours ago, onthebogeytrain said:

Right. My wife is a nurse. Avg nursing salary in some states is almost double what it is here.

True, but home prices in some parts of the country are triple to 4x as much as South Dakota.   Portland is going run you 600-750k and Seattle will be over a million for the metro area, less if you are ok with A 45+ min commute.🤮

 

I can’t fathom the Bay Area or nyc

Edited April 9 by Pnwpingi210

[Nickb333]

4 hours ago, onthebogeytrain said:

Right. My wife is a nurse. Avg nursing salary in some states is almost double what it is here.

Curious what affordable looks like to you? 

[RoverTiger]

2 hours ago, ChaosTheory said:

Usually when home prices or rates are too high, it makes more sense to rent.  I know it feels like flushing money down the drain.  And you’d like to put down roots.  But it’s nothing compared to buying at the peak and then having a big correction wipe you out.  Which happened in the 00’s.

This. 

 

My wife and I have thought about buying of late, but we have one of the best deals in town on a decent rental townhouse. Our living situation is solid, so no need to upset things just for the hell of it.

Edited April 9 by RoverTiger

[Petethreeput]

2 hours ago, Pnwpingi210 said:

home prices in some parts of the country are triple to 4x as much as South Dakota

This is what is happening around here and in desirable areas of ND and SD.  Because of remote/hybrid work, these folks are selling their homes for $X+ (the going rate in the cities in which they live) and moving in with a ton of equity or just buying in cash.  They are still getting paid home base wages, but living in a smaller town with a presumably better lifestyle, but what makes sense to them absolutely shatters the "local" housing market for those who live/work in the area.  A homeowner is going to hold out for that out of towner, which raises the prices, and why wouldn't they?

 

The key metric, as one of those who is experiencing this surge in home prices isn't the absolute price of the home, but rather the price of the home in relation to the areas wages.  In our little town, based on average home price and average wage, we spend more for housing (something like 38% of wage) than San Francisco, but, our average home price isn't as high as SF.  In our town, less than 60% are tied to the local economy, retired, remote worker, or trust funder.

 

 

  

 

 

[aenemated]

1 hour ago, Petethreeput said:

still getting paid home base wages, but living in a smaller town with a presumably better lifestyle

 

[Pnwpingi210]

2 hours ago, Petethreeput said:

This is what is happening around here and in desirable areas of ND and SD.  Because of remote/hybrid work, these folks are selling their homes for $X+ (the going rate in the cities in which they live) and moving in with a ton of equity or just buying in cash.  They are still getting paid home base wages, but living in a smaller town with a presumably better lifestyle, but what makes sense to them absolutely shatters the "local" housing market for those who live/work in the area.  A homeowner is going to hold out for that out of towner, which raises the prices, and why wouldn't they?

 

The key metric, as one of those who is experiencing this surge in home prices isn't the absolute price of the home, but rather the price of the home in relation to the areas wages.  In our little town, based on average home price and average wage, we spend more for housing (something like 38% of wage) than San Francisco, but, our average home price isn't as high as SF.  In our town, less than 60% are tied to the local economy, retired, remote worker, or trust funder.

 

 

  

 

 

Sure.  That happens in small pockets everywhere. Jackson hole, Vail, I think a few places in Montana had that too.  I was giving average metro areas pricing not average “highly desirable area” pricing .  Those are easily double that of the prices i posted and probably closer to triple on average.

Agree it’s not great everywhere

 

[deadsolid...shank]

2 hours ago, Petethreeput said:

This is what is happening around here and in desirable areas of ND and SD.  Because of remote/hybrid work, these folks are selling their homes for $X+ (the going rate in the cities in which they live) and moving in with a ton of equity or just buying in cash.  They are still getting paid home base wages, but living in a smaller town with a presumably better lifestyle, but what makes sense to them absolutely shatters the "local" housing market for those who live/work in the area.  A homeowner is going to hold out for that out of towner, which raises the prices, and why wouldn't they?

 

The key metric, as one of those who is experiencing this surge in home prices isn't the absolute price of the home, but rather the price of the home in relation to the areas wages.  In our little town, based on average home price and average wage, we spend more for housing (something like 38% of wage) than San Francisco, but, our average home price isn't as high as SF.  In our town, less than 60% are tied to the local economy, retired, remote worker, or trust funder.

 

 

  

 

 

I know some (maybe many) companies are now adjusting salaries for where their workers live. My wife’s company is doing that. They are based in Arizona and Colorado. One of the people moved to Tennessee (where it is lower)and got an adjustment to salary. 

[bladehunter]

On 4/8/2025 at 11:07 AM, AtomicJoe said:

Just pull yourself up by your bootstraps! Why I bought my first house when I was 17 and paid it off in 6 months working my paper route and bagging groceries all while raising a family of 8! If only you’d stop buying all those lattes and avocado toast! 

etc.. 

 

yeah the state of the economy is maddening. Not to mention how little your money is actually worth. It’s amazing how much the true cost of a home as compared to one’s income has skyrocketed… not just the base price. 

Standing ovation.  I have a 16 year old who literally worries about how he will ever be able to have his own place.  We are lucky to live on a farm.  And I’ve reassured him that we will choose a corner and build him a house. Somehow. We are not wealthy.  Land poor is the way of the farmer.  Anyway. I’m only 45. I distinctly recall being his age and not giving a flying fig about it. You could rent nice stuff for $500 a month.  I know a guy my age that bought his aunts house for full appraisal. With 8 acres. For $479 a month. In 2006. At the base of glassy mountain. That place is now appraised at 870k. And it’s 2 bedroom. 1 bath.   He’s in same boat I am.  Getting killed on taxes unless he farms it. And no desire to sell.   The county wants it all for homes.  That’s why the tax keeps going up. If not for the sc Ag  land bank tax discounts , nobody could hold on.  
 

I have a place close by me that I could have bought for $202k in 07 that had a barn , 1970s ranch house and 14 acres. Wish I had. But instead  we bought the road front on the backside of our farm.  Total of 8 acres.  At $10k an acre. But it’s 1/8 mile of road front.  That way nobody can build a house in front or behind us. If I had my time to do again. I’d have bought both.  Hindsight.  

[Nickb333]

Hindsight is 20/20. 
 

Best of luck to all y’all.

[bladehunter]

13 hours ago, Nickb333 said:

Hindsight is 20/20. 
 

Best of luck to all y’all.

Yep. But as a wise man always told me “ it’s impossible to be lost if you still have gas.  Just turn around and go back till you find the wrong turn. Then turn correctly “.    We still have gas.  
 

I’d start by outlawing private equity buys. And I’d make it broad.  For business too.  And make it a felony to try to back door that.  Stop  the sale of successful mom and pop shops. All it does is falsely inflate valuations. Because the part out is worth more than the whole. It’s bad for society.  They lie and say they build by facilitating business they don’t. They mostly kill.  The Joann fabrics story ( google it ) is a prime example. They bought a thriving business trading at $45 and no debt. Inside 10 years of equity buy out , they file bankruptcy and stock is at $12.  All they did was milk it to death. By design.  This happens in healthcare every day. And your options suffer because of it.  and it’s rampant in real estate. They’re simply creating a market that makes you want to rent.  And that’s a renewable market for THEM.  
 

And stop  the culture of a home being an ATM.  It shouldn’t be a borrowing hedge. It should be a home.  Period.  

[clayc]

Totally agree @bladehunter

[mshills]

On 4/9/2025 at 2:36 PM, Petethreeput said:

This is what is happening around here and in desirable areas of ND and SD.  Because of remote/hybrid work, these folks are selling their homes for $X+ (the going rate in the cities in which they live) and moving in with a ton of equity or just buying in cash.  They are still getting paid home base wages, but living in a smaller town with a presumably better lifestyle, but what makes sense to them absolutely shatters the "local" housing market for those who live/work in the area.  A homeowner is going to hold out for that out of towner, which raises the prices, and why wouldn't they?

 

The key metric, as one of those who is experiencing this surge in home prices isn't the absolute price of the home, but rather the price of the home in relation to the areas wages.  In our little town, based on average home price and average wage, we spend more for housing (something like 38% of wage) than San Francisco, but, our average home price isn't as high as SF.  In our town, less than 60% are tied to the local economy, retired, remote worker, or trust funder.

It really sucks for anyone who needs / wants to buy right now. In many areas the housing / wages ratio — for local employment — does not make sense. And, money is relatively more costly than it was ~6y ago. 
 

I don’t expect money to get cheaper. The low points on 30y mortgages circa 2019 I think were more the anomaly. I do expect to see a major realignment of pay for remote work, and I am surprised firms have not been more aggressive about doing so. House prices will correct sometime but no clue when. 
 

One more point. Renting is not throwing money away. I despise that tired old cliche….like all blanket statements it is not true. Many people’s situation is perfect for renting, and if a 30 year old thinks equity from his home is going to fund retirement, think again. As long as someone continues to save using other vehicles, there is nothing wrong with renting. 

[Jraallen]

I’m in Massachusetts, without traffic maybe 40 mins west of Boston, with traffic could be 2-2.5 hours but typically more like 1.5.
Single story houses, 1/4 acre land, slab foundations, crawl space attics, small rooms, low ceilings, no storage..basically the definition of a starter home and they start around 500k, often a fair chunk more if they don’t need any work or have recent updates. 

Edited April 18 by Jraallen

[WesternRacing]

I own and live in a nice house that I love, but if it burned down tomorrow, the last thing I’d do is ever buy/own another home.  I get why some people are dying to own a house, but I gotta say, it’s overrated.  If my wife would agree, I’d sell and rent for the rest of my life.  At a minimum, I’d have no problem renting until market conditions changed or I found the perfect place.  The last thing I’d do is buy a house that I didn’t love or felt was overpriced, just to own a house.

[Nickb333]

10 minutes ago, WesternRacing said:

I own and live in a nice house that I love, but if it burned down tomorrow, the last thing I’d do is ever buy/own another home.  I get why some people are dying to own a house, but I gotta say, it’s overrated.  If my wife would agree, I’d sell and rent for the rest of my life.  At a minimum, I’d have no problem renting until market conditions changed or I found the perfect place.  The last thing I’d do is buy a house that I didn’t love or felt was overpriced, just to own a house.

I understand what you’re saying, but…

 

If your house burned and you don’t rebuild, you’ll potentially leave a lot of money on the table. Most insurance policies are not obligated to pay the full replacement cost of your loss unless you actually replace what was lost. Exceptions occur, but the key word here is obligated. 

[MK7Golf21]

21 minutes ago, WesternRacing said:

I own and live in a nice house that I love, but if it burned down tomorrow, the last thing I’d do is ever buy/own another home.  I get why some people are dying to own a house, but I gotta say, it’s overrated.  If my wife would agree, I’d sell and rent for the rest of my life.  At a minimum, I’d have no problem renting until market conditions changed or I found the perfect place.  The last thing I’d do is buy a house that I didn’t love or felt was overpriced, just to own a house.

I think the problem people have with renting is sharing walls with other units, unless you rent a house from someone.

[Wooley12]

  I owned 2 homes and now I rent as I can't afford to buy a home where I retired to. Got here 2 years late. Happy with our small 3 BR in a Shangri La setting.  Super landlord. I got lucky. Lots of horror stories. Owning a home has been the traditional way for the common working man to accrue enough wealth to burn the mortgage papers and retire. Causes me concern if that channel is not an option. 

 

 

 

Edited April 18 by Wooley12