[soggybread]

I've been saving up for the past 8 years and have got a pretty decent deposit built up but the costs of houses in my area are just so expensive that the deposit barely makes a scratch in the overall mortgage costs and I wouldn't be able to afford the mortgage, seems like the more I save up the higher the housing prices go. It absolutely amazes (and infuriates) me that some of the houses I see going for 400-500k now went for 150-200k 10 years ago.

[tyleo]

I was in the same situation and the solution is to just get a worse home than you want :(

I just purchased my first home because I could finally afford it after a few lucky cash windfalls. I spent the last 5 years in a 700 sq ft apartment.

What I learned: I would have been much better off buying a worse home 5 years ago that was at least better than the 700 sq ft apartment.

I don’t think saving up that down payment makes as much sense any more. I felt like I was chasing a target which was moving faster than I was.

[chmod600]

Doubling or even tripling in ten years is not a ridiculous rate of growth.

[Sohcahtoa82]

For a stock, maybe not. But for a house? It is absolutely beyond ridiculous for a house to double in 10 years. Are you kidding me?

That's far beyond the rate of inflation. Unless there are significant improvements to the house or the surrounding area, the value of house should not rise faster than inflation, at least not by some significant margin.

[chmod600]

"the value of house should not rise faster than inflation, at least not by some significant margin"

What does "should" even mean here?

[Sohcahtoa82]

I think the meaning is clear given the full context of my comment.

It is ridiculous for a home owner to expect the value of their home to rise faster than inflation by a significant margin without there being massive improvements to either the home itself or the neighborhood.

And skyrocketing housing prices means the rich get richer while utterly fucking over the young generation and locking them out of home ownership as prices rise significantly faster than wages.

[skywhopper]

That’s 7-10% price growth per year. How is that not ridiculous?

[asadotzler]

Bay Area housing has been increasing at about 7% per year for about 40 or 50 years.

[cykros]

And the Bay Area is the outlier everyone points to when talking about absurd housing markets.

So, you know, ridiculous.

It also seems to be finally hitting a wall post COVID.

[asadotzler]

Half a century of strong housing markets isn't a random fluctuation likely to change.