It_is_my_time said:
Lost in Transfiguration said:
No, this is failure of boomers to downsize or failure to move in with family or retirement homes. They retain the homes of value in the suburbs or the city rather than moving on. Thereby, putting more upward pressure on the housing market. The fact that millenials want urban houses rather than suburbs is just as much their fault as it is boomers. Everyone knows the value proposition associated with living in the city, so, it is in fact other millennials competing with each other for houses in the city. This is not to say that the city is expensive; if they were to live anywhere other than LA, SF or NYC, there are plenty of affordable urban houses.
The us is not overpopulated have you ever lived in suburbia or any part of the US not on either coast? The US is not over-populated, it just turns out that people are like sardines on the east and west coasts.
I grew up in a VERY rural area. My idea that the country is not overpopulated is not based on my observations. Though the urban sprawl the 2 hour commutes to work, and the aging infrastructure we all deal with on a day to day basis should be enough alone to realize there are too many people here.
The country is overpopulated due to simple supply and demand. Resources are not infinite, we have too much demand (people) for supply (resources) and thus we have priced ourselves out of a 1st world life and now to the point our ancestors in feudal Europe lived better.
Could you modify it to "the cities are overpopulated"? Once you get out of them, things get quite affordable.
I think its like the 'instagram effect'. Where now hordes of people focus on these narrow bands of popular items, but overlook that nearby almost just as good opportunities. For example, near me is a very large national park, which is in turn surrounded by equally large national and state forests. Yet, all of the visitors to the national park line up to see the 7 or 8 already super crowded and backed up scenic views...because that is what is posted online, so that is where they go, and they never explore the nearly emply other tens of square miles of serene nature.
In this case, with popular cities everyone wants to move there. New immigrants, hipsters, then job seekers, then corporations. Made worse by the fact that a lot of older people who bought into the lie of "invest in your own real estate" are holding onto houses that are vastly outdated, yet they want a price premium. This forces the new housing growth to all be in new housing, which increases urban sprawl.
This is what Nashville is experiencing currently. 2000sq ft homes are $300k+ up from $200k in 2014. Compare that with the city proper of Memphis $120k or less. If you wanted a safer, but smaller city. Jackson TN $150k ish. Places in MS, AL, GA and KY are even cheaper.
If america was truly overpopulated, house prices would be high everywhere, it is just that popular cities are overpopulated by both citizens, immigrants and foreign investors.