Housing Appreciation and Inflation: Future Outlook?

lifesupport4u said:
Maybe I am in the minority but I own zero rental properties and comments like this drive me nuts. Is it really bad or is it just jealousy? If they can make money doing it good for them and keep the government’s grubby greedy hands out of it.
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Maybe we are both in the minority. But IMO housing got expensive because raw materials got expensive. We had these super low interest rates for awhile so people bought houses they should not have been able to afford. Thus the prices of houses kept going up cause of demand, eventually people started to get priced out. Not interest rates of sky rocketed and the prices still have not come down because the price of raw materials has not come down.
 
lifesupport4u said:
My comment was towards a post stating they would support “taxing short term rentals into oblivion”. I understand 1031 exchange. I understand how some of these folks build wealth and I fail to see the problem. Court d Alene is nice and it’s no surprise it’s in high demand. A good friend of mine wants to move there and can’t afford to. Yet he is not pointing his fingers at other people who have worked, saved, leveraged, risked, invested and utilized smart tax advantaged strategies as the problem in his situation. I’m not the victim of wealthy people. Life isn’t fair and I have made choices and it’s not the governments job to intervene so I can have what I want when I want it. I am just a guy trying to provide for a family on a single income but the belief we should tax people who get in the way of what I want seems pretty selfish. People lack grit and they just want the government to step in rather than pulling up their boot straps and getting to work.

Ok, I’m off my soap box.
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You arent wrong. Most of the kids (22-25 years old fresh out of college) i used to manage say similar things about housing - especially in denver.

What they don't get 10 years ago - i couldnt afford to buy a house there - i knew that - and took a job paying about 20k less in WY. Because housing comparable was 150k more or rent was about double in WY. No such thing as widespread remote work then either...
 
lifesupport4u said:
A good friend of mine wants to move there and can’t afford to. Yet he is not pointing his fingers at other people who have worked, saved, leveraged, risked, invested and utilized smart tax advantaged strategies as the problem in his situation. I’m not the victim of wealthy people. Life isn’t fair and I have made choices and it’s not the governments job to intervene so I can have what I want when I want it.
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Who is he pointing fingers at? Did you tell him he needs to get some grit and pull himself up by the bootstraps?

No one is asking the government to intervene. The government's job is to make sure the rules are fair and everyone plays by them. Some would argue that wealthy people have different rules than poor people. Your citation of "tax advantaged strategies" is a good example. For decades homeownership has been sold as the "American Dream", and the tax system was set up promote home ownership. Unfortunately, no one ever thought that so many people would own multiple homes and result in restricting the "American Dream" to those entering the workforce.
 
SAJ-99 said:
But setting up an ABNB under a LLC means you get to write off all expenses on the taxes. So 1) it takes inventory off the market to make a rental and 2) it inflates prices. I have no problem with ABNB or rentals, but there should be zero tax benefits to doing so, particularly over the average working American who wants to own.
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I believe they pay taxes on all profits and eventually capital gains whether it’s under a sole proprietorship, partnership or any form of LLC. Additionally, they assume quite a bit of risk with tenant issues, home problems and market conditions. It does inflate prices in some areas and I am sure it’s frustrating for many who want to buy in certain areas. Affordable housing is also an issue for folks who operate a business with low paying jobs (I.e. restaurant owners). At the end of the day, I think it’s attributed to some challenges for some people but don’t support more taxation as the solution.
 
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SAJ-99 said:
Who is he pointing fingers at? Did you tell him he needs to get some grit and pull himself up by the bootstraps?

No one is asking the government to intervene. The government's job is to make sure the rules are fair and everyone plays by them. Some would argue that wealthy people have different rules than poor people. Your citation of "tax advantaged strategies" is a good example. For decades homeownership has been sold as the "American Dream", and the tax system was set up promote home ownership. Unfortunately, no one ever thought that so many people would own multiple homes and result in restricting the "American Dream" to those entering the workforce.
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Some of it is perspective though too.

In example - id never airbnb 1 or 2 rooms out of my home. However - people do it to be able to afford purchasing a home. Just as others use that similar type of income as an avenue to pay the mortgage. 10 years ago the option to do that hardly existed.
 
SAJ-99 said:
Who is he pointing fingers at? Did you tell him he needs to get some grit and pull himself up by the bootstraps?

No one is asking the government to intervene. The government's job is to make sure the rules are fair and everyone plays by them. Some would argue that wealthy people have different rules than poor people. Your citation of "tax advantaged strategies" is a good example. For decades homeownership has been sold as the "American Dream", and the tax system was set up promote home ownership. Unfortunately, no one ever thought that so many people would own multiple homes and result in restricting the "American Dream" to those entering the workforce.
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No my buddy isn’t blaming wealthy people or others was my point. If he was, I probably would tell him that with less keyboard warrior harshness.

That said, someone suggested taxing air bnb owners to oblivion- which I would say is heavy handed government intervention.

And I fundamentally disagree on there being different set of rules. There is only one tax code.

There are lots of obstacles to home ownership for young people but if the market supports it someone will step in and build more.

I need to get back to hunting posts. None of this is worth upsetting anyone.
 
@Sytes AirBnB/VRBO have ruined so many places/made it impossible for local working class people to find housing.

For instance here you could rent a 1bed 1 bath for like $900/month, but you can make $12k just renting the property on home game weekends during the summer. Tons of properties sit vacant for months. I don't mind long term rentals.

If folks don't like taxes, fine I'm totally cool with zoning that says that short term rentals are illegal.

I've stayed in a bunch as well, but now I try to avoid them for hotels after seeing the damage they do.
 
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As to downsizing, even before the recent boom in prices, we looked at it. Basically we could have a smaller house, less well made, with no mature landscape, and maybe make a little; frankly not worth packing.
Plus unlikely to find a new place with a combined wine cellar and gun room :)
 
lifesupport4u said:
And I fundamentally disagree on there being different set of rules. There is only one tax code.
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And that tax code is 6ft high and favors those that already have assets over those trying to build assets. Such as I don't get to used a Modified Accelerated Cost Recovery method against my own house. Generically under certain passive income rules they also get to apply unrented days as a cost against the rental income they collect. The tax code is basically The Accountant Full Employment Act. Poor people don't need accountants.
 
Just a reminder, taxation is theft. Anyone who disagrees is a window licker if they’re bitching about high taxes.
 
SAJ-99 said:
And that tax code is 6ft high and favors those that already have assets over those trying to build assets. Such as I don't get to used a Modified Accelerated Cost Recovery method against my own house. Generically under certain passive income rules they also get to apply unrented days as a cost against the rental income they collect. The tax code is basically The Accountant Full Employment Act. Poor people don't need accountants.
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Now you are starting to catch on. Poor people can’t afford to put solar panels on their roofs, even with a tax credit. Rich people can, and that raises the value of their homes, while being partially funded by all taxpayers.
 
BigHornRam said:
Now you are starting to catch on. Poor people can’t afford to put solar panels on their roofs, even with a tax credit. Rich people can, and that raises the value of their homes, while being partially funded by all taxpayers.
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Sure, but that isn't the whole story. Poor (and rich) people benefit from a robust energy grid, even if they don't realize it. A tax credit is only useful if you PAY taxes. There is probably no 'perfect' solution to a situation where everyone wants cheap, reliable electricity and doesn't want to pay to make it cheap and reliable. That rule goes for a lot of things we enjoy in America: roads, healthcare, public lands, etc.
 
brymoore said:
If you truly believe this I suggest you start your protest by refusing to drive on paved roads.
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What percentage of our budget gets spent on infrastructure?

I already know - but i think you should find out so you can see how silly this argument is.
 
Irrelevant said:
Buy a house you want to live in and leave it at that. Don't let the timing dictate it.
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I agree.
With home ownership, you can set up a wood shop, grow a garden, have animals, etc.

I bought my Alaska house for $110k in 1995, it is worth about $400k today.
But a new roof, new septic system, new boiler, etc cost about $50k.

Investing $110k at 4.5% over 30 years would yield about $425k.
The S&P 500 returned about 10.25% per year over that time period,
so an investment of $110k would have yielded about $1.8 million
 
Aerosith said:
The median price of a home in the US currently as of 2024 is $417,000, and the average median income to buy on these houses is $110,000 yearly income. This is up from a $76,000 required income in 2020. Please explain how we don't have a housing problem? As a 22 year old and a member of Gen Z, the future prospects of buying a house are very dim. Many people will never be able to afford houses.
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People that want to own homes figure out a way to do so.
 
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