My husband and I bought our first home 20 years ago. It was 1800 sq ft and cost us $187,000. Today, minimal improvement has been done to it, and it is now appraised at over half a million. I should say that we sold it two years after purchasing it. We have bought five different homes in the last twenty years as we've moved for my husband's job. We will soon be moving from a very low cost of living area to on only slightly above average. We have a very healthy equity amount that could pay over 20% on homes a lot smaller than we currently live in, but we wouldn't be able to afford the payment. So after 20 years of home ownership, we cannot afford to buy any longer.
Speaking to climate change, our homeowner's insurance is almost $5,000/yr in a hurricane-prone area. Some companies won't even insure homes in this zip code anymore, even though we are over an hour from the ocean. The coming years are only going to get much scarier, I'm afraid.
Thanks for your comment, Sara. The homeowner insurance issue as tied to climate change is an increasing problem that will soon put home ownership out of reach for many in certain (and growing!) areas of the country.
You're kind to mention my Substack, Joan. Thank you.
the DoJ sued a mortgage company - excellent. Only now I fear with the new administration, that's the kind of thing which will be shelved. Also, how do we get more people of color in the appraisal business? That's a question we need to focus on. Is there discrimination at this level as well (hiring practices)? I suspect so.
As for Ken Burns... sounds a bit like Virginia Woolf's "A Room of one's own". Sure, if you can afford to stay in the same place for a long time, you are able to do much more with your life than focusing on your living conditions. It's been 14 months since we moved into our current place and we are STILL dealing with stuff that takes up way too much of my time. And that's without there being a big disaster.
Thanks Jan. And always happy to mention your newsletter! If one has the choice (I think Burns rented this home first with no central heating, before he could afford to buy), it is probably a huge time savor to not spend the time and physical and emotional energy in moving.
Not sure my family will ever be able to afford to buy a house. Sure, we could move somewhere cheaper. Does that really help solve the problem. We're a solidly middle-class household that can't find 150 grand for a down payment. Which is almost 100 times what my parents needed 50 years ago. Imagine something like ground beef going from $.50 cents to $50 per pound.
No, moving to a less expensive area won't solve the root problem. What do you think the government do, if anything, to tamp down the rising cost of home ownership?
Force hedge funds and property management companies to divest from at least some of their housing holdings. There are corporations that own tens of thousands of houses and act as corporate landlords. Encourage the creation of more housing through tax benefits and/or easier access for smaller builders. New regulations requiring that all housing must be occupied for most of any calendar year. Those are a start.
My husband and I bought our first home 20 years ago. It was 1800 sq ft and cost us $187,000. Today, minimal improvement has been done to it, and it is now appraised at over half a million. I should say that we sold it two years after purchasing it. We have bought five different homes in the last twenty years as we've moved for my husband's job. We will soon be moving from a very low cost of living area to on only slightly above average. We have a very healthy equity amount that could pay over 20% on homes a lot smaller than we currently live in, but we wouldn't be able to afford the payment. So after 20 years of home ownership, we cannot afford to buy any longer.
Speaking to climate change, our homeowner's insurance is almost $5,000/yr in a hurricane-prone area. Some companies won't even insure homes in this zip code anymore, even though we are over an hour from the ocean. The coming years are only going to get much scarier, I'm afraid.
Thanks for your comment, Sara. The homeowner insurance issue as tied to climate change is an increasing problem that will soon put home ownership out of reach for many in certain (and growing!) areas of the country.
You're kind to mention my Substack, Joan. Thank you.
the DoJ sued a mortgage company - excellent. Only now I fear with the new administration, that's the kind of thing which will be shelved. Also, how do we get more people of color in the appraisal business? That's a question we need to focus on. Is there discrimination at this level as well (hiring practices)? I suspect so.
As for Ken Burns... sounds a bit like Virginia Woolf's "A Room of one's own". Sure, if you can afford to stay in the same place for a long time, you are able to do much more with your life than focusing on your living conditions. It's been 14 months since we moved into our current place and we are STILL dealing with stuff that takes up way too much of my time. And that's without there being a big disaster.
Good information as always!
Thanks Jan. And always happy to mention your newsletter! If one has the choice (I think Burns rented this home first with no central heating, before he could afford to buy), it is probably a huge time savor to not spend the time and physical and emotional energy in moving.
Not sure my family will ever be able to afford to buy a house. Sure, we could move somewhere cheaper. Does that really help solve the problem. We're a solidly middle-class household that can't find 150 grand for a down payment. Which is almost 100 times what my parents needed 50 years ago. Imagine something like ground beef going from $.50 cents to $50 per pound.
No, moving to a less expensive area won't solve the root problem. What do you think the government do, if anything, to tamp down the rising cost of home ownership?
Force hedge funds and property management companies to divest from at least some of their housing holdings. There are corporations that own tens of thousands of houses and act as corporate landlords. Encourage the creation of more housing through tax benefits and/or easier access for smaller builders. New regulations requiring that all housing must be occupied for most of any calendar year. Those are a start.
I agree good start—I believe the first two, at least, have already been initiated.
Thanks for the re-stack, Kent!