I see a lot of expensive houses being built in my area. A LOT. And the weird thing is that they’re being bought pretty quickly. Are these people just making more money than me? If so, what are they doing for a living? Or are they just living house poor? How exactly are they affording these places?

Edit: For reference, my neighborhood is starting to become popular (because the other popular neighborhoods have priced most people out of affording places there). The normal price of newer homes here is $700k. My home, built in 1965, which is 2500sq ft on a quarter acre of land, is $500k.

  • RickRussell_CA@lemmy.worldEnglish
    1·
    1 year ago

    The renter does not determine the price when the alternative is to move elsewhere or live out of your car.

    The renter is the person who pays the rent, not the person who can’t afford it. If someone gets evicted because they can’t pay rent, they are replaced with someone who will.

    You’re on the right track, though. Over-regulation, opposition to new construction, and opposition to multi-family construction are the reason buyers are willing to pay more and more in HCOL areas.