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It is capped
Wow, that's quite a ratio! Sounds like you're living in a pricey area or enjoying some serious digs.
Pricey area, average digs. The kind that costs $300-400k in many parts of the country
This is what occurs when the Fed lowers rates to nothing and allows every clown out there to throw far too much borrowed money at assets. Prices naturally rise but only till the Fed has to raise rates, which eventually unwinds all the temporary expansion, employment, and asset-price gains.
Welcome to the Fed's modern-day Boom/Bust Cycle.
That’s a feature not a bug. Cheap bank credit allows the very wealthy to purchase more income generating assets.
Regular people are bought off by refinancing their homes.
Oh and a tiny handful of new businesses will be created as a very distant tertiary priority.
this is a common phenomena in the us right now. many homeowners could not afford to purchase the houses they live in were they to try and get them now. its a demonstration of just what has happened in the housing market.
Now that you know this you can respond to this one of two ways:
1) "screw you guys, I got mine". Vote against new development, flaunt it in peoples faces, support prop 13, etc.
2) "wow, this is fucked, I feel bad for people younger than me and will erode my prosperity so some can have some as well". We recently had an election in my town. Despite being a homeowner, I voted for the pro-development candidates. Build baby build, soak the homeowners, lets go underwater baby... simply because it is right....
I hope you are capable of empathy to those behind you.
Yes, I would vote for building more homes in my city. The problem is that there is absolutely no land remaining to build single family homes, which everyone wants. Hence the prices of those are going up relentlessly.
The only housing that can be built and is being built is dense multi family housing. But the new townhomes have 3 levels with steep stairs in the house, are located on busy streets and cost $2M. People don’t want to buy them…
How do you afford the property tax?