Posted on Jun 20, 2024
Homebuilder warns real estate market is becoming victim to its 'No. 1 killer'
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Posted 3 mo ago
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I'm on that side of the Construction world and he really doesn't understand the problem.
In 2009, Average Home Price in the US was $184,000, the Median Income was $50,221. In 2023, median household income is $74,202, average home prices first quarter of 2024 was $420,800. During the period when your average wages went up a bit less that 50%, the average house price has over doubled. While interest rates may discourage some buyers, the simple fact is that wage dollars for the lower 4 quintiles have stagnated.
The reality is worse than these numbers. Income increases in the top quintile is much larger than in the bottom 4. Add to the fact the Zoning and lack of lots for smaller homes had stopped anything close to a Starter Home, at least in my area.
The average square footage of houses that we provide in this area currently over 4000 SF of living area. That house is substantially more than that $420K.
Interest rates aren't going to help. If you run that $74,202 on Zillow's affordability calculator, it will hit about $190,000, depending on your debt load. That is a long way from the Median House range.
In 2009, Average Home Price in the US was $184,000, the Median Income was $50,221. In 2023, median household income is $74,202, average home prices first quarter of 2024 was $420,800. During the period when your average wages went up a bit less that 50%, the average house price has over doubled. While interest rates may discourage some buyers, the simple fact is that wage dollars for the lower 4 quintiles have stagnated.
The reality is worse than these numbers. Income increases in the top quintile is much larger than in the bottom 4. Add to the fact the Zoning and lack of lots for smaller homes had stopped anything close to a Starter Home, at least in my area.
The average square footage of houses that we provide in this area currently over 4000 SF of living area. That house is substantially more than that $420K.
Interest rates aren't going to help. If you run that $74,202 on Zillow's affordability calculator, it will hit about $190,000, depending on your debt load. That is a long way from the Median House range.
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CPT Lawrence Cable
SFC (Join to see) - You ought to see some of the houses and barns we had done on the Horse Farms! Bluegrass Horse Farms are hobby farms for the obscenely wealthy. People like Mohammed bin Rashid Al Maktoum want what they want and have the money to pay for it. There are several homes in the area that exceed 25,000 SF.
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CPT Lawrence Cable
SFC (Join to see) - This is how the 1% and their pets live. I helped design and engineer the barn in the banner. Let it scroll and it will show more of it. To give you some scale, it base of the center Cupola is 56' high and in 2000 decade dollars, cost about 1.2 million each. We supplied two of them. https://www.sienafarm.com/farm-gallery/
Farm Gallery | Siena Farm of Paris, KentuckySiena Farm of Paris, Kentucky
Siena Farm Thru The Lens Images by David Stephenson Photography
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SFC (Join to see)
CPT Lawrence Cable - Holy crap! These places look like something out of Yellowstone. I would have liked to be in on the design of some of the structures.
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CPT Lawrence Cable
SFC (Join to see) - The structural frame of the building above the block consists of Parallam beams (engineered wood beams) with 3x6 T&G Doug Fir roof sheathing, all of it stained. The exterior of the building has nailing strips with fiber cement siding and trim. The general contractor had a shop to build all of the steel stall gates and also fabricated the brackets for the beams. The people I worked for focus on the structural wood and fiber cement siding. We do doors and windows for residential homes, but on Horse Barns, the doors and windows tend to be custom fabricated.
This farm has a very nice house, still probably 5000 SF, but would be considered modest for a thoroughbred farm. Right across the road from this farm is either #1 or #2 of the largest homes in the area. It pushes 30,000 SF. I didn't have anything to do with that build.
This farm has a very nice house, still probably 5000 SF, but would be considered modest for a thoroughbred farm. Right across the road from this farm is either #1 or #2 of the largest homes in the area. It pushes 30,000 SF. I didn't have anything to do with that build.
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