Residential Housing Crisis

[CityKin]

^regarding #4:
I've never seen a building department that makes $$ off of permit fees. In fact, I've been told that in Ohio it is against the law for a City to use permit fees to fund other government functions. Every building department I am familiar with must be subsidized by the general fund..

In my last job, I was responsible for coming up with a formula for determining the permit fees, and I was told to keep it under 1% of the hard construction costs, which we did, easily.

 

[conarb]

It is against the law in California for building departments to profit off services they provide, if they do make a profit it is considered a tax and must be approved by a vote or 2/3 of the populace. In spite of that several cities who were profiting were sued by the NAHB, they paid a fine and resumed profiting. They have become more sophisticated by now and have moved other services within the building department so permit fees cover the overhead expenses of housing departments and other services.

It seems to me that a more honest and transparent system would be to charge an hourly rate for services rendered.

 

[steveray]

^regarding #4:
I've never seen a building department that makes $$ off of permit fees. In fact, I've been told that in Ohio it is against the law for a City to use permit fees to fund other government functions. Every building department I am familiar with must be subsidized by the general fund..

In my last job, I was responsible for coming up with a formula for determining the permit fees, and I was told to keep it under 1% of the hard construction costs, which we did, easily.

I "made" $2.3 million over my $240,000 budget last FY....I hope we get sued...

 

[RANDOM]

If a contractor had free land and built a 1200 sq ft house for $50.00 sq ft for a total cost of $60,000.00 and added 20% profit for a sale price of $72,000.00 a realtor would list it for $250,000.00 because that is what the market will pay. Nobody in the business world will sell anything below market price. Housing and rentals are a business and if the people investing in this business are not making money they will move to a market they can.

You cannot force people into smaller housing units anymore than you can force them into small cars.

There are to many variables that drive housing prices to blame it on one or two of those variables

combined realtor fees in my area from raw land to sale to lot sale to housing sale will add 20 to 23 thousand dollars to a final mortgage on a $250,000.00 house. So how many people are left out of the home ownership market because of the added realtor fees.

Stagnate wages not keeping up with inflation
Supply and demand

The market might pay that amount, but it's not the real price. It is an inflated price that was artificially increased by immigrants who came loaded with cash and need a Visa to stay. The famous EB-5 visa lured thousands of migrants from the world's elite to settle in the most popular cities in the US. Apart from investing in businessm they bought fixed assets a.k.a "houses" and drove their price up.

There is a sort of violent gentrification that is spreading all across the nation. What you could buy for as little as 70 K in let's say Pasadena in the 1970's, is no less than 1 million today.

I sincerely do not think that there is a significant inflation in the US. I believe that there is an exaggerated flow of new money poring in that is like a Dutch Decease!

 

[mtlogcabin]

I can same the same about Californians, New Yorker's and Floridian's moving to Montana with money in their pockets and paying inflated prices for land and homes. It happens all across the country and in our state it is older people who retire or work out of their homes who come here and can afford to build larger homes then the people who have lived and worked here all their lives.
I am not begrudging anybody it is just a fact.


Where Californians Roam
These states have seen the biggest influx of people born in California (counting adults 21 and older).

State Share of total population
Nevada 18.4%
Oregon 15.6%
Idaho 13.4%
Arizona 10%
Alaska 9.7%
Washington 9.3%
Utah 8.7%
Hawaii 7.1%
Colorado 6.9%
Montana 6.8%

 

[RANDOM]

I can same the same about Californians, New Yorker's and Floridian's moving to Montana with money in their pockets and paying inflated prices for land and homes. It happens all across the country and in our state it is older people who retire or work out of their homes who come here and can afford to build larger homes then the people who have lived and worked here all their lives.
I am not begrudging anybody it is just a fact.


Where Californians Roam
These states have seen the biggest influx of people born in California (counting adults 21 and older).

State Share of total population
Nevada 18.4%
Oregon 15.6%
Idaho 13.4%
Arizona 10%
Alaska 9.7%
Washington 9.3%
Utah 8.7%
Hawaii 7.1%
Colorado 6.9%
Montana 6.8%

Which would be a solution to this problem? You cannot control prices, the market works and adjusts itself.

 

[tmurray]

The market might pay that amount, but it's not the real price. It is an inflated price that was artificially increased by immigrants who came loaded with cash and need a Visa to stay. The famous EB-5 visa lured thousands of migrants from the world's elite to settle in the most popular cities in the US. Apart from investing in businessm they bought fixed assets a.k.a "houses" and drove their price up.

There is a sort of violent gentrification that is spreading all across the nation. What you could buy for as little as 70 K in let's say Pasadena in the 1970's, is no less than 1 million today.

I sincerely do not think that there is a significant inflation in the US. I believe that there is an exaggerated flow of new money poring in that is like a Dutch Decease!

This is actually a problem facing Canada too. Specifically Toronto and Vancouver. In an effort to assist, both now have additional taxes that must be paid by foreign property owners.

 

[Frank Ringer]

Yes, I agree with your point many of the investors have faced this problem.

 

[DMartin]

That article goes on to say:



If some undeveloped land was released to developers I can guarantee you that builders would be buying it and building on it, if zoning allowed it, just look at the land owned by the federal government in the western United States, this doesn't include state owned, local government owned, or park or water district owned. I agree on the realtors, the Internet has destroyed lots of businesses, why real estate still stays around is a mystery to me.

Let's put that land to public use or start severely restricting population.


¹ http://www.eastbaytimes.com/2017/05...avalanche-130-bills-proposed-in-sacramento-2/

The problem with that is that even if it was released. Big corporations would swoop it up and sell for top dollar. Still not making it affordable for most of America to afford. Rent prices need to be reevaluated. There is the problem. I saw the same stuff happening in Portland. Urban sprawl had reached a max the solution was to build multi story complexes. But in order to turn a profit after the cost of land and construction they had to sell them off for more than most could afford. Buyers had to recoup there money, again rising the cost of living (market Values). They finally added legislation to try and keep rents from being jacked up so much but at that point it was too little too late. When a 50 Y.O. complex or homes compete at market value it great for the owners not for the people. Corporations come in jack up the property values and then everyone else follows suit. Greed is the biggest problem not the zoning. Not that a little more lax zoning is not needed but.... Luckily I moved to the Midwest where it is still at least affordable to live.

 

[ADAguy]

Still comes down to "location, location, location". It has always been an east to west migration, blame the English.
You can only pack so many people into one place unless you want to be packed in like Hong Kong.
After 200 + years we still have the attitude that there is plenty of land left and water too (smiling).

 

[e hilton]

My boss is of asian descent, he went to china and hong kong for vacation this summer. While in HK they looked at a high rise apartment out by the airport, out of curiosity. He said it was very small, and they were asking $1 mil. Real estate agent asked if they were HK residents ... no ... ok, 50% down payment. Residents only needed 10%.

 

[ADAguy]

The ultimate in downsizing. Unlike we Americans the Aisians have considerable experience with small spaces and not aquiring a lot of personal possessions

 

[Frank Ringer]

The housing crisis may occur anywhere and affordable housing becomes extremely scarce. Funds are always under tremendous pressure at this time. Here's what experts predict that real estate markets and mortgage rates will continue rising. Prestige Capital Corporation is helping those people by raising funds for their house and other factoring companies at a limited number of conditions.