Anyone think the housing market in the US will get better some day?

[ThatStateOfMind]

Silly little me was hanging around in a womb when houses in the US averaged $100,000 or so. In 2024, the median home price was over $400,000. Even back in early-mid 2010s, my uncle got a decent home for $70,000. It needed a little work, and we live in a LCOL area, but my point stands considering his home, according to Zillow, is now worth $160,000. That's doubled. Someone else I know bought a house a few years after my uncle, which has also doubled in value.

At this rate, I constantly wonder if it will ever recover, or will a home be a pipe dream to younger people in America. Anyone have any opinions?

 

[whywere]

I live in the Midwest of the U.S. and for work I travel all over the country and at least in my point of view, the price of shelter is going to only go up.

Along with the increasing price structures in housing, I always think that so very many do NOT think of the residual costs of owning. Now the state that I live in has property and income tax and the property taxes bite pretty good. Now what about the few states that do not have income taxes? The money for roads, schools and the like have to come from somewhere.

Also, the price of housing insurance, and that is if one can even get a company to write a policy much less the high premium costs. Take states like Florida and California, with hurricanes and wildfires, good luck finding insurance.

The world population always increases and that will always put pressure on housing demands.

With the price of a mortgage and ALL the costs of taxes, insurance, maintaining the house and the like, with population pressure, owning a house in the future will be more of a challenge than in any other generation ever.

Walter

 

[ThatStateOfMind]

I live in the Midwest of the U.S. and for work I travel all over the country and at least in my point of view, the price of shelter is going to only go up.

Along with the increasing price structures in housing, I always think that so very many do NOT think of the residual costs of owning. Now the state that I live in has property and income tax and the property taxes bite pretty good. Now what about the few states that do not have income taxes? The money for roads, schools and the like have to come from somewhere.

Also, the price of housing insurance, and that is if one can even get a company to write a policy much less the high premium costs. Take states like Florida and California, with hurricanes and wildfires, good luck finding insurance.

The world population always increases and that will always put pressure on housing demands.

With the price of a mortgage and ALL the costs of taxes, insurance, maintaining the house and the like, with population pressure, owning a house in the future will be more of a challenge than in any other generation ever.

Walter

I honestly, sadly, agree. I don't see them going down, at least not by any significant amount. Of course, they might occasionally dip, but seems like it always trends upwards.

I think even a recession wouldn't do too much because the demand will still exist. People are also very comfortable in their 2-3% interest rate, and unwilling to leave it for a 6-7% interest rate, and I honestly can't say I blame them.

I think MAYBE if zoning laws were changed, we could see a drop, but again, demand will always exceed supply. Population growth is expected to dip in Gen Z and following generations as overall fertility rates drop. Having a kid is becoming too expensive for many, as are houses.

Just judging from a quick google search, a kid in the 1980s cost around $70,000 to raise to age 18. Now, that cost can range anywhere from $200,000-$300,000, depending on your state. I expect to see fertility rates continue to drop, and I seriously wouldn't be surprised if, in the United States, that number drops to <1 child per woman. Again though, I still think it will never cause the housing market to recover. Though I am a bit of a pessimist in that department.