The Stock Market Is Not The Economy Thread II

[archibaldcrane]

High earners aren't having a great time tho

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[Andalusian girls]

The best fix for housing is radically increasing supply; that requires rezoning for more apartments or other high density dwellings and less focus on buying homes that we don't have space for.

true and it would be cool if someone did that instead of saying be grateful for .01% wage growth serfs

[archibaldcrane]

true and it would be cool if someone did that instead of saying be grateful for .01% wage growth serfs

Hey we've built over 80k ADUs since liberalization of ADU laws starting in 2017.

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[thetruepandagod]

ur outta touch archie!

[Cantih]

https://www.cbsnews.com/news/rent-ho...using-studies/

roughly 653,000 people reported experiencing homelessness in January of 2023, up roughly 12% from the same time a year prior and 48% from 2015

Harvard researchers found that half of all U.S. households across income levels spent between 30% and 50% of their monthly pay on housing in 2022, defining them as "cost-burdened." Some 12 million tenants were severely cost-burdened that year, meaning they spent more than half their monthly pay on rent and utilities, up 14% from pre-pandemic levels.

People earning between $45,000 and $74,999 per year took the biggest hit from rising rents — on average, 41% of their paycheck went toward rent and utilities

[Andalusian girls]

no you don't understand

0.01% real wage growth

[kuronosan]

Dunno about other areas but around these parts "new apartments" are more expensive than mortgaging a house so not sure that building lots of apartments is really going to do anything

[Meresgi]

Dunno about other areas but around these parts "new apartments" are more expensive than mortgaging a house so not sure that building lots of apartments is really going to do anything

I mean at least you can get the apartment lease without having a down payment though. Also you're not committing to (x) years with the house and area you just moved to.

[kuronosan]

Still need a security deposit and some places ask you to pay months of rent in advance so

[Penthesilea]

Don't forget the brokers fee!

[archibaldcrane]

Dunno about other areas but around these parts "new apartments" are more expensive than mortgaging a house so not sure that building lots of apartments is really going to do anything

The point is to get high earners out of older mediocre housing. These "moving chains" are well supported by research and rapidly open up inventory in lower priced units if supply increases sufficiently.

Also known as "Yuppie fish tank theory"

https://www.tiktok.com/@jake_gotta/v...from_webapp=v1

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[Meresgi]

Still need a security deposit and some places ask you to pay months of rent in advance so

So for a 4500 rent place, that's gonna be at most 13500 down. If you're paying that much though chances are you're doing roommates at least.

500k house with 12% down (4% more then nerdwallet says is average for 1st time homebuyer) is 60k. That's not comparable at all.

Renting sucks and landlords suck and I hate it, but yeah people don't just have that much to toss down. Basing all of this around my area which is much more inflated then other areas but I can't imagine getting a house for less then 500k in any decent area close to good work.

[archibaldcrane]

https://twitter.com/CohenSite/status...SHp61OsfQ&s=19

I've long-fantasized about redeveloping my SFH rental property into an apartment building. Most of the buildings on the block were turned into 4/5 plexes 50+ years ago, and under the current zoning I could make my lot into a 6-plex, 45 ft height limit.

But with the state incentives outlined in the blog above, I calculated I could build up to 15 units so long as 2 are deed-restricted affordable for "Very low income" households (earning between 40-60% of Area Median Income) and 1 is deed restricted affordable for "Moderate income" households (earning between 100-120% AMI).

And the height restriction would be removed.

Last piece of this puzzle could be the legalization of "single stair" apartments, where one staircase+elevator provides ingress/egress to the whole building. Currently this is illegal in 4+ story buildings but California just passed a law requiring the state fire chief to loosen this restriction (which doesn't exist in most of Europe, or Seattle). This allows for better floorplates on small lots, so you can build stuff like this:

5 stories, a 1bd/2bd/3bd per story, wood frame construction on maybe a single concrete parking podium level (although no parking is required).

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[archibaldcrane]

Also, on topic

https://twitter.com/SteveRattner/sta...66IWgLYCw&s=19

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[Roranora]

i watched most of the Gamestonks movie yesterday and was disappointed no one portrayed Tyche

[Zetanio]

https://twitter.com/CohenSite/status...SHp61OsfQ&s=19

I've long-fantasized about redeveloping my SFH rental property into an apartment building. Most of the buildings on the block were turned into 4/5 plexes 50+ years ago, and under the current zoning I could make my lot into a 6-plex, 45 ft height limit.

But with the state incentives outlined in the blog above, I calculated I could build up to 15 units so long as 2 are deed-restricted affordable for "Very low income" households (earning between 40-60% of Area Median Income) and 1 is deed restricted affordable for "Moderate income" households (earning between 100-120% AMI).

And the height restriction would be removed.

Last piece of this puzzle could be the legalization of "single stair" apartments, where one staircase+elevator provides ingress/egress to the whole building. Currently this is illegal in 4+ story buildings but California just passed a law requiring the state fire chief to loosen this restriction (which doesn't exist in most of Europe, or Seattle). This allows for better floorplates on small lots, so you can build stuff like this:

5 stories, a 1bd/2bd/3bd per story, wood frame construction on maybe a single concrete parking podium level (although no parking is required).

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this is a great idea.

[Andalusian girls]

Archi u gon get rich af if you do actually get that goin, could retire for life a month after it's up, kids would never have to worry about shit.

[Zealot]

Rent me a place for cheap.

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[archibaldcrane]

Archi u gon get rich af if you do actually get that goin, could retire for life a month after it's up, kids would never have to worry about shit.

Now if I could just scrape together 6 million dollars for construction

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[archibaldcrane]

(probably would be more like 8m actually)

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