U.S. Housing Prices Explosion Making Repatriation a Less Realistic Option for Many?

[LarrySR]

For Sale - Sant Rosa,

18SQ Meter studio home with separate bathroom. There is not a fully equipped kitchen, featuring a mini fridge, microwave and sink.

$1,000,000

https://www.yahoo.com/news/196-square-foot-home-santa-203441214.html

 

[Yellowtail]

1 hour ago, LarrySR said:

For Sale - Sant Rosa,

18SQ Meter studio home with separate bathroom. There is not a fully equipped kitchen, featuring a mini fridge, microwave and sink.

$1,000,000

https://www.yahoo.com/news/196-square-foot-home-santa-203441214.html

 

Santa Rosa Beach on just over a 1/4 acre lot. 

[EVENKEEL]

2 hours ago, LarrySR said:

For Sale - Sant Rosa,

18SQ Meter studio home with separate bathroom. There is not a fully equipped kitchen, featuring a mini fridge, microwave and sink.

$1,000,000

https://www.yahoo.com/news/196-square-foot-home-santa-203441214.html

 

Not sure what the relevancy is. Having money is good. You can ask any price you want to. 

[JimTripper]

Don't come back to California if you don't have a place. It's too expensive.

 

Gas is over $6 a gallon, twice as much as milk. Rents are crazy high in the coastal cities. LA & SF look like war zones in parts with homelessness getting worse. Many shops closed or vacant.

 

People are getting more irratible and stressed out as inflation picks up.

 

The economy did not seem to bounce back from covid like I thought it would. It seems to be getting worse.

[Jingthing]

18 minutes ago, JimTripper said:

Don't come back to California if you don't have a place. It's too expensive.

 

Gas is over $6 a gallon, twice as much as milk. Rents are crazy high in the coastal cities. LA & SF look like war zones in parts with homelessness getting worse. Many shops closed or vacant.

 

People are getting more irratible and stressed out as inflation picks up.

 

The economy did not seem to bounce back from covid like I thought it would. It seems to be getting worse.

Cali is one of the extreme examples but the issues in this topic are national in scope.

 

Obviously you can find some God forsaken small town backwaters where market rate housing is relatively low but then you're dealing with places with no or very few rentals, no amenities, neighbors that won't accept you, the need to run a car and usually very long drives for shopping and medical care beyond basic.

[LarrySR]

53 minutes ago, JimTripper said:

Don't come back to California if you don't have a place. It's too expensive.

 

Gas is over $6 a gallon, twice as much as milk. Rents are crazy high in the coastal cities. LA & SF look like war zones in parts with homelessness getting worse. Many shops closed or vacant.

 

People are getting more irratible and stressed out as inflation picks up.

 

The economy did not seem to bounce back from covid like I thought it would. It seems to be getting worse.

Unemployment is down from a 14.7 percent peak in May 2020 to 3.9 today. 
GDP 6.9%.
These are astounding numbers. 
 

 

[Jingthing]

10 minutes ago, LarrySR said:

Unemployment is down from a 14.7 percent peak in May 2020 to 3.9 today. 
GDP 6.9%.
These are astounding numbers. 
 

 

They are but have the wages come even close to meeting rent increases? Generally not even close. 

[JimTripper]

28 minutes ago, LarrySR said:

Unemployment is down from a 14.7 percent peak in May 2020 to 3.9 today. 
GDP 6.9%.
These are astounding numbers. 
 

 

The jobs are mostly low paying service sector <deleted> like grocery clerks. It was stuff where people left in droves during covid afraid they would catch it dealing with the public, then got re-hired easily as people started running out of money from unemployment.

[Jingthing]

9 minutes ago, JimTripper said:

The jobs are mostly low paying service sector <deleted> like grocery clerks. It was stuff where people left in droves during covid afraid they would catch it dealing with the public, then got re-hired easily as people started running out of money from unemployment.

Yeah two or three of those types of full time jobs, and you're sitting pretty!

[LarrySR]

37 minutes ago, JimTripper said:

The jobs are mostly low paying service sector <deleted> like grocery clerks.

Sounds like something you’d hear on Fox News. 
Fact is, the average salary in the USA is $53,490 per year. 
In California it’s over $70,000.

 

Salary paid by industry listed below. 
 

https://www.jobted.com/salary

 

[Yellowtail]

I think the labor participation rate is worth looking at.

 

It's down a couple percent since 2019, so add about two percent to the the unemployment rate. 

 

 

[Jingthing]

6 hours ago, LarrySR said:

Sounds like something you’d hear on Fox News. 
Fact is, the average salary in the USA is $53,490 per year. 
In California it’s over $70,000.

 

Salary paid by industry listed below. 
 

https://www.jobted.com/salary

 

He was talking about more recently added jobs.

Also people don't have average jobs.

They have their jobs.

[LarrySR]

23 minutes ago, Jingthing said:

He was talking about more recently added jobs.

Also people don't have average jobs.

They have their jobs.

What’s the average salary of recently added jobs?

 

“As of Mar 10, 2022, the average monthly pay for an Average in the United States is $5,555 a month.

While ZipRecruiter is seeing monthly salaries as high as $11,333 and as low as $1,708, the majority of Average salaries currently range between $4,125 (25th percentile) to $6,167 (75th percentile) across the United States. The average pay range for an Average varies greatly (by as much as $2,042), which suggests there may be many opportunities for advancement and increased pay based on skill level, location and years of experience.”

 

[Jingthing]

4 minutes ago, LarrySR said:

What’s the average salary of recently added jobs?

 

“As of Mar 10, 2022, the average monthly pay for an Average in the United States is $5,555 a month.

While ZipRecruiter is seeing monthly salaries as high as $11,333 and as low as $1,708, the majority of Average salaries currently range between $4,125 (25th percentile) to $6,167 (75th percentile) across the United States. The average pay range for an Average varies greatly (by as much as $2,042), which suggests there may be many opportunities for advancement and increased pay based on skill level, location and years of experience.

OK.

But the fact remains that a very significant percentage.of renters can barely afford their current rent much less massive increases.

[mikebike]

11 minutes ago, LarrySR said:

What’s the average salary of recently added jobs?

 

“As of Mar 10, 2022, the average monthly pay for an Average in the United States is $5,555 a month.

While ZipRecruiter is seeing monthly salaries as high as $11,333 and as low as $1,708, the majority of Average salaries currently range between $4,125 (25th percentile) to $6,167 (75th percentile) across the United States. The average pay range for an Average varies greatly (by as much as $2,042), which suggests there may be many opportunities for advancement and increased pay based on skill level, location and years of experience.”

 

Average is a bad indicator. Median USA monthly is $3,685.

[Yellowtail]

59 minutes ago, mikebike said:

Average is a bad indicator. Median USA monthly is $3,685.

And in areas what the cost of living is higher is is higher. 

 

Target is paying $48K a year to start. Show up and fog a mirror. 

[Yellowtail]

1 hour ago, mikebike said:

Average is a bad indicator. Median USA monthly is $3,685.

In 2021, average household income in the United States was $96,955 or ~$8,080/month

 

In 2021 median household income in the United States was $67,463 or ~$5,620/month

[Yellowtail]

[mikebike]

10 minutes ago, Yellowtail said:

In 2021, average household income in the United States was $96,955 or ~$8,080/month

 

In 2021 median household income in the United States was $67,463 or ~$5,620/month

You sure?

 

https://www.zippia.com/advice/average-american-income/#:~:text=The average personal income in,in the U.S. is %2444%2C225.

 

Household vs personal... but this indicates that if one person in the household is earning median income, the other is WELL below that...

[Yellowtail]

1 hour ago, mikebike said:

You sure?

 

https://www.zippia.com/advice/average-american-income/#:~:text=The average personal income in,in the U.S. is %2444%2C225.

 

Household vs personal... but this indicates that if one person in the household is earning median income, the other is WELL below that...

No I'm not sure of anything, are you? That said, mine is from the Federal Reserve Bank of Saint Louis, yours? Oh yeah, Zippia. 

 

[GinBoy2]

Well after 15 pages of this, I'm now motivated to double the rents for my tenants, which I haven't increased by a cent in the past 5 years

[Jingthing]

Dystopian repatriation?

 

 

[GinBoy2]

Must admit I've been kinda shocked at the inflation in rents.

 

Two of our apartments just came up to rent.

 

Been charging $850 and $950 for years. 

 

I changed property management companies and they upped the rent to $1150 and $1200, they both rented within two days of being advertised.

 

Sorry for folks wanting to rent, great for us though.

 

We're total hands off landlords. I'll happily pay a property management company to take care of all the dirty details so long as we receive a check every month 

 

 

[mania]

On 6/3/2022 at 3:31 PM, GinBoy2 said:

We're total hands off landlords. I'll happily pay a property management company to take care of all the dirty details so long as we receive a check every month

It's a good income backed by an appreciating asset but there are pitfalls too

Had a friend rented out a home to a nice lady who promptly turned it over to her welfare druggie daughter

She stopped paying rent about 3rd month

Kick her out? Not allowed need court order

Go to court took 8 months till court opening

That day she doesn't show, My friend gets the eviction order goes to house which is now empty & trashed inside

 

 

[spidermike007]

Hyper inflation in the US is positively ungodly at the moment. If you do not own something there, and you are not wealthy, no chance of moving back. Which is fine by me. Well, hyper inflation is likely to continue for awhile, but the authorities will never admit the full extent of inflation. Also, what goes up must come down. The economy has been over heated for quite some time, and within a year, or two, or three, many of us are expecting a historic correction. I would not be surprised to see the Dow drop as low as 6,000, and the housing market to drop by 60%. The current stock market pricing, consumer price increases, and real estate market cannot continue.

 

What is conveniently forgotten, is that this seems like the only time I can remember, where up until very recently we have had record low interest rates, combined with a historic rise in real estate prices, and consumer prices, to levels never seen before. That is totally unsustainable. So, if you are looking to relocate, you might want to consider waiting this one out. Prices already seem to be dropping on real estate. It is only a matter of time. 

[GinBoy2]

Most of us on here are old enough to remember inflation back in the 80's, and like then it's global phenomenon, I don't think any country is immune.

 

Of course the current spike is due a lot to Mad Vlad and oil prices, but central banks across the West pumped so much money into the system because of covid it always had to play out as inflation at some point.

 

Again looking back at the 80's we had mortgage rates of 10%+ we're nowhere near that yet, so maybe the Fed plus the other central banks can get a hold of this a tamp it down before it becomes ruinous 

[Yellowtail]

I'm no fan of the administration, and inflation is bad, but anyone that calls what we are experiencing hyperinflation does not understand what hyperinflation is, and should not throw the term around. 

 

While Putin has impacted it inflation, he not the primary driver, and it started long before he invaded Ukraine.

 

 

[heybruce]

On 6/5/2022 at 4:29 AM, GinBoy2 said:

Most of us on here are old enough to remember inflation back in the 80's, and like then it's global phenomenon, I don't think any country is immune.

 

Of course the current spike is due a lot to Mad Vlad and oil prices, but central banks across the West pumped so much money into the system because of covid it always had to play out as inflation at some point.

 

Again looking back at the 80's we had mortgage rates of 10%+ we're nowhere near that yet, so maybe the Fed plus the other central banks can get a hold of this a tamp it down before it becomes ruinous 

I remember the '80's, I was thrilled when I was able to get a home loan in 1988 for only 10.5%.  People had been paying home loan rates up to and sometimes exceeding 20%.  There was a housing bubble in southern California and other places and some crazy schemes to secure financing. 

 

What we are experiencing now is mild by comparison.

[Jingthing]

Think.mobile homes are an affordable option?

Not if you're renting the land.

 

https://www.washingtonpost.com/business/2022/06/06/mobile-manufactured-home-rents-rising/

 

ECONOMY

‘We’re all afraid’: Massive rent increases hit mobile homes

Park rents are doubling or tripling, as high demand, low inventory and a rise in corporate owners take a toll on one of the nation’s biggest sources of affordable housing

 

For nearly 30 years, Virginia Rubio has lived in a trailer park in Forks, Wash., where monthly rent teeters around $350. Now it’s shooting up to $1,000.

[GinBoy2]

This whole topic boils down to some some fundamentals.

 

You are not a citizen, or in the vast majority of expats in Thailand even a permanent resident, you are at best a long term tourist.

 

That fact for all my time in Asia was never lost on me, and early on I decided that I was always going to maintain a home in the US, since as a US citizen it was the ultimate bolt hole if things went south, or I just tired of life overseas.

 

Mrs G is a US permanent resident, yet we still keep a Thai house. 

 

God forbid anything would ever happen to us, but she has that too.

 

Too many folks decide way to early to go 'all in', selling up everything then years later down the line wanting to call it quits and repatriate, and thats tough in any country not just the US, since things move on at a very different pace to Thailand