My salary didn’t change at all, but homes went up 82%. The money I saved for a down payment and my salary no longer are good enough for this home and many others. This ain’t even a “good” home either. It was a 200k meh average ok home before. Now it’s simply unaffordable

  • Fermion@feddit.nlEnglish
    32·
    2 months ago

    You’re only making money if you downsize, move somewhere cheaper, or switch back to renting. If you move and all the other houses have gone up, then you just end up having to sink any gained equity into affording your new place. Rising prices really only help developers, realtors, and REIT’s.

    • EndlessNightmare@reddthat.comEnglish
      7·
      2 months ago

      Housing price increases are actively harmful to those who want to upgrade, since it increases the incremental cost of upgrading.

        • dan@upvote.auEnglish
          1·
          2 months ago

          In California the property tax can only increase a maximum of 2% per year, so at least there’s that. (this law was put in place so that older people don’t get priced out of their house due to house values going up a lot)

    • socsa@piefed.socialEnglish
      1·
      2 months ago

      Right but you then control the appreciation on a much larger asset. In terms of pure net worth and net present value, trading up is a huge gain even if it doesn’t generate more short term liquidity.

      You can also rent out the smaller place and get both cash flow and NPV upgrade.