Rates are crashing and fuel to the moon!

My thought process goes back to why Phoenix? If someone is working multiple jobs simply to exist in a place why stay? Sure everyone likes to be close to family but at the end of the day everyone is an adult who can make their own choices.

When I left Missoula at the end of 2011 a studio was $650 a month and I refused to pay that, no way I’d entertain the housing costs in western MT now. The brand new house we paid $200k for in 2005 is pushing $600k now and that’s just stupid for what it was. But people continue to move there and they’re willing to max out their money mostly on housing, choosing to be house poor because when that much of your income goes to housing it doesn’t leave much for anything else.

What’s a reasonable commute? There are people here that drive an hour into Lincoln every day, be it the wife that does it because the husband works local or the husband does it because the wife stays home. York is 20 away and Zip Recruiter says there are 109 jobs available within 25 miles of York that pay over $85k. Geneva has nursing positions available at the hospital. The ethanol plant is advertising for up to $28 an hour. The feedlot is in the mid-20’s for their employees. Just depends on what someone wants to do or can do. Personally I’d rather drive a feed truck at the feedlot and have some sort of life away from work than have to come up with $1500 a month or more just to cover housing costs.

 

I do agree but it's not just a problem in phoenix... every big city on the west coast is like this...probably the whole country. not everybody has the means of just packing up and moving . Most people are struggling to have a couple bucks left over at every paycheck.. let alone saving up thousands of dollars to move somewhere blindly, then trying to bring kids with you and find new schools and stuff like that... then the aspect of leaving your family behind.. my whole family was born and raised in Phoenix. I'm the only in my family to have seen the country east of texas and north of Nevada... if I didn't get in trucking I'd be right there struggling to pay bills I'm sure

 

Unfortunately, it’s not just the big cities on the west coast, it’s most of it. I’m sitting in a little valley with less than 5,000 people. There’s one house for rent at $1,500, couple of crappy apartments the next town over for $1,000 (40 minute commute), and the cheapest home for sale is $450K.

Housing is driving wages, but wages are limited by having to make a profit to survive. It’s a mess.

Housing is driven by the expectations created by negative real interest rates and only children, combined with a shortage of contractors, who now believe they should make $125K on a build.

The only way out will involve pain, like 20 to 30 years of real estate stagnation kind of pain.

 

All true. Most places housing is in direct correlation with median incomes. Right now it’s all out of whack, due to a shortage of available homes. A correction has to happen, and it will. 100 years of data prove it. Some say it’s not going to happen. Same people with similar interests said the same things in 2008. It’s inevitable. The idea that interest rates, new construction costs, wages, and inflation are going to magically all come together to gradually make homes more affordable is a long shot. My home value increased.003% this year, inflation is up nearly 4% if you believe the rhetoric. Net result is my home dropped 3.7%. It’s just beginning. Once foreclosures start, it’ll accelerate. Current prices aren’t sustainable.

 

Save every dime you can right now. Phoenix is one of the most overvalued areas. Just like in 08. The biggest price drops start in the same cities that saw the biggest price increases. You need cash, and good credit, and ability to show steady income. Live in a tent right now if you have to. Lol. Your chance is coming. 1-3 years. Prices will fall. Current interest rates are not the problem. Barely higher than the average. Eventually rates may drop low again. You can always refinance if and when it happens. History is repeating itself. Like the stock market, best to be going against the masses. Buying Opportunities are on the way. Being able to take advantage is key. You’re young enough still to benefit from what’s just starting to happen. Save that money!!

 

Luckily I do not live in the city anymore. I moved out to the boonies a couple years ago on my grandparents property... couple acres of dirt and a house that's all paid for .. hard to beat

my brother just bought a nice house in the city. I just feel for alot of people my age that are struggling through no fault of their own.. used to be all you had to do was work hard and you could live. No longer the case.

 

63k/year with a family to feed isn't going to cut living anywhere in the DelMarVa area no matter how frugal you live.

 

Move

 

All about what you want of your lifestyle.

I feel like living out in the middle of nowhere would be great: til I’m there a few minutes and start to feel dissatisfied with the lack of all the things that I enjoy and enjoy being around. Lots of places are enjoyable in brief stints when you’re just visiting. Lots of places are real #### holes that you can only really appreciate the gravity of when you are moments from leaving just after you’ve arrived.


Around here you could make it @ $70-75k a year and be doing alright. Long as you’re single with no dependents and have rather moderate taste in about everything. I think, anyway. Idk anyone at that kinda wage level. I can only think of one person below that threshold, about $50k a year. Single no kids, rents a room out of a house full of other room renters, common bathroom, no kitchen. Goes to the casino once a quarter and blows anything he has left.



If you’re in the dark and want to find something: go to where it’s light.

 

If you got a kid or two and make $100k in any major metropolitan areas , you are barely getting by nowadays