The thing is they aren’t going up evenly everywhere. A $400,000 house from a few years back in my area is now selling for $600,000, but a $100,000 house from that same time is now selling for $300,000. So the price difference between the 2 has actually stayed the same.
The institutional investors are targeting the cheaper houses, so they’re the ones skyrocketing the most in value.
I’m not saying homeowners are in a worse position. Just that increasing values also hurt them.
My parents had to move out into the country into a smaller house because their taxes got so high they couldn’t keep up after retirement when they quit getting raises.
I don’t know how evenly houses go up or how much consistency there is, but going from $100K to $200K is easier than $300K to $600K.
Housing price increases are almost certainly making the gap wider for upgrades.
The thing is they aren’t going up evenly everywhere. A $400,000 house from a few years back in my area is now selling for $600,000, but a $100,000 house from that same time is now selling for $300,000. So the price difference between the 2 has actually stayed the same.
The institutional investors are targeting the cheaper houses, so they’re the ones skyrocketing the most in value.
So still a net loss for those wishing to upgrade.
As you said in another comment: