Is it a bubble? Is it going to pop? Do you need to bid over asking? Has it already sold? Are there any houses left? Will you ever find one? Vox’s Jerusalem Demsas explains.Transcript at vox.com/todayexplained. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport Today, Explained by
Publish Date: May 03, 2021
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Is it a bubble? Is it going to pop? Do you need to bid over asking? Has it already sold? Are there any houses left? Will you ever find one? Vox’s Jerusalem Demsas explains.Transcript at vox.com/todayexplained. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport Today, Explained by making a financial contribution to Vox! bit.ly/givepodcasts Learn more about your ad choices. Visit megaphone.fm/adchoices
dotes about all cash offers. There are so many anecdotes about people waving inspection fees, even buying houses without ever having set foot in them. And it's all kind of reflection of just how crazy the competition is right now. Where are all these houses being sold all over the country houses are being sold at a higher rate than we've seen in a long time. Whether you're in suburban America, rural America or urban America, the hottest markets that were happening pre pandemic places like the phoenix suburbs or the Austin suburbs, because they're warm because they're more affordable than other cities. Those have continued to be the hottest markets during the pandemic. One of the hottest real estate markets in the nation right now is austin texas. Home prices are up more than 18% in the last year. I mean an influx of tech workers from Silicon Valley and what we've also seen is that people have been moving into the suburbs of the places they were already living in. So if you're someone who lived in san Francisco, maybe you move to an exurb of san Francisco or maybe another city within California. But very few people made major moves outside of their own state. Mhm. And what's extra wild about this, which you've alluded to a few times now is that this is all happening during a pandemic when you'd think people would maybe be tried to avoid going to random houses or when people have really been struggling economically, how do we reconcile these sort of opposing phenomena? I think it's something that's been talked about a lot during covid 19. It's just the differential impact on lower income and higher income americans. And this is something that is called the K shaped recovery and it's nowhere more apparent than in housing, where you have higher income folks who are able to take advantage of low interest rates and low mortgage rates to be able to buy homes and lower income americans are obviously not able to take advantage of this at all and are actually facing higher rents than they usually work the pandemic, a stretched many Minnesota families financially as they cope with losing jobs and paychecks. The state has a moratorium on evictions, but struggling neighbors in one community learned there is no restriction on raising rent. I need to decrease something. You know, maybe I decrease food or uh lower my heat or you know, something. So, um, what's happening with Covid is that you're having essentially all these people who are able to work remotely are now able to celebrate the moves they already wanted to make, whether it was more time to look for a house or they have more money because the stock market's been doing so well, they're able to make that move and then uh that's not happening at the other end of the income ladder. So the pandemic is to blame here. I wouldn't say the pandemic is to blame here. It exacerbated, explained the pandemic. Come on. Well I think what's happening is it's exacerbating existing trends. America has been really really bad at building enough homes for a long time. Over the last decade. We've built fewer homes than at any other point since the 19 sixties. But also you know you're right the pandemic has changed some things uh in that you know people are less willing to like have people come to see their homes because they're afraid of catching a deadly virus. So there are just fewer homes on the market. But that's clearly not the biggest problem here. The biggest problem has more to do with the fact that we're not building enough in the places that people want to live in high demand locations like D. C. Or new york boston, L. A SAn Francisco. We don't have enough homes and that's causing people to compete for a fewer amount of properties. Abhinav and Mo Shikha Gupta first started looking at homes in november. They've placed seven offers and been outbid every single time. So they're looking at every possible way to sweeten the deal. Were 49 are season ticket holders. So we've included 49 our season game one game of your choice for 20 21 regular season. We just did that this morning. Why don't we have enough houses in all these places that people really want to live? So local governments control?