13 replies to this topic

[pdx5]

 

I think housing is a big part of it.  This is an old article, but has been going on for years now.

 

https://www.wired.co...cities-anymore/

 

"It's very hard to get people to understand that the affordable housing crisis is not for the very poor," says lawyer Mechele Dickerson of the University of Texas, an expert in housing and the middle class. It's for people with good jobs who are not poor enough to qualify for subsidized housing, nor rich enough to pay the rising housing prices. "A family that makes $100,000 can't afford to buy a house in most US cities," Dickerson says.

 

 

 

I don't know how home prices got this high, are the materials really that high or is it the labor ? If it's in a nice area I've seen lots selling for 80-100K, but this is 10 miles outside the city. Few builders are building smaller homes now, 1200-1500 sf, most I see are 2400-4000 sf. 400-500k is common.

 

 

 

 

Main reason? ZIRP! Just look at your interest rate on bank CD's & savings accounts. It is way below real inflation rate, and you have to pay tax every year on that measly interest. Stocks and housing? No tax on appreciation of asset until you sell, and house sale is largely tax exempt if it is your main residence. 

[robo]

My house is paid for, but in some areas I just don't know how people do it. At some point this has to change. We have not even talked about how much it is for medical coverage.....  None of this matters if you are Rich, but many folks are struggling out there.  The 2020 election should be fun to watch.  I remain debit free other then monthly expenses, and of course my property taxes I have to pay....

 

 

 

A minimum-wage worker can’t afford a 2-bedroom apartment anywhere in the U.S.

 

https://www.washingt...m=.7062156f9b3d

 

 

 

Two Out of Five Working NYC Households Can’t Afford Basic Necessities, Study Reveals

 

https://www.nbcnewyo...-500629431.html

 

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Blain: "My Recent US Trip Was An Eye-Opener - Poverty Has Never Been So Visible On The Street"

 

 

"Why should a rich man pay to make the poor comfortable? Because, if you don’t… eventually they will eat you. Simple as – it’s the cost of membership."

 

https://www.zerohedg...-visible-street

 

 

Bill Gates: Best Option For Soaking The Rich Would Be Hiking Capital Gains Tax

 

"We only collect about 20 percent of GDP and we spend like 24 percent of GDP. So you can’t let that deficit grow faster than the economy..."

https://www.zerohedg...pital-gains-tax

Edited by robo, 18 February 2019 - 06:33 PM.

[CLK]

There is no incentive for builders to develop property into $125,000 homes that most people can afford. They cater to the rich so they build $500k homes on 80k lots. The small homes built in the 40's and 50's aren't bad but there are only so many available.

[CLK]

The Fed props the market up by QE and interest rates, instead of letting it find it's true value, and in so doing they inadvertently keep housing, food, energy too high, so really even middle class is going broke. Only way to counter inflation is to have money in the market, and not the IRA or 401k, going to need to spend some of it.