Housing Prices
Jul. 8th, 2017 10:26 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
livingdebThe most interesting thing to me at today's neighborhood association meeting was when some realtors said that a year-over-year average housing increase of 10-12% "is standard for stabilized neighborhoods." (They gave us data since 2012 showing increases in my neighborhood of 18%, 19%, 16%, 3%, and 10%, respectively. This was to demonstrate that the craziness is dying down.)
Um 10-12%? Everybody and their dog always says over and over again that housing is not a good investment because it tends to match inflation. (Although the forced savings can make it a good idea for many people.) Our inflation rate has been more like 2-3%. My raises also have been more like 0-3%. I don't see how increases of 10-12% could be considered stable.
Many people mentioned that they could not afford to buy their houses at today's current rates (and their current incomes). The same is true for me: I bought my house in 1996 for 61.5K; my salary was less than 20K at the time. My house is supposedly now worth about 300K; my salary would have to be close to 100K to be comparable. I cannot imagine ever making even half that much in one year even if I were working full-time.
They said the problem is that Austin has been the fastest growing city for a couple of years (though googling shows that is not true, our population has definitely been growing). Rent is also crazy high. So apparently many people are having lots of roommates.
Austin is responding by re-zoning to increase density. For example, most people in single-family homes are now allowed to build accessory dwelling units (ADUs), aka granny flats (my favorite term!) or garage apartments or mother-in-law apartments. They are hoping this will lead to more affordable housing becoming available. People worry about parking problems and the reduction of impervious cover (which could lead to increased flooding).
I feel a little like it is my civic duty to build one of these on my property. And also it could help me afford to keep paying my property taxes (which are high in Texas).
Um 10-12%? Everybody and their dog always says over and over again that housing is not a good investment because it tends to match inflation. (Although the forced savings can make it a good idea for many people.) Our inflation rate has been more like 2-3%. My raises also have been more like 0-3%. I don't see how increases of 10-12% could be considered stable.
Many people mentioned that they could not afford to buy their houses at today's current rates (and their current incomes). The same is true for me: I bought my house in 1996 for 61.5K; my salary was less than 20K at the time. My house is supposedly now worth about 300K; my salary would have to be close to 100K to be comparable. I cannot imagine ever making even half that much in one year even if I were working full-time.
They said the problem is that Austin has been the fastest growing city for a couple of years (though googling shows that is not true, our population has definitely been growing). Rent is also crazy high. So apparently many people are having lots of roommates.
Austin is responding by re-zoning to increase density. For example, most people in single-family homes are now allowed to build accessory dwelling units (ADUs), aka granny flats (my favorite term!) or garage apartments or mother-in-law apartments. They are hoping this will lead to more affordable housing becoming available. People worry about parking problems and the reduction of impervious cover (which could lead to increased flooding).
I feel a little like it is my civic duty to build one of these on my property. And also it could help me afford to keep paying my property taxes (which are high in Texas).