Housing

[MajorRewrite]

Housing costs (purchasing or renting) are a big issue around the world, and a main part of the larger affordability problem. We don’t have a dedicated thread for the topic … so here it is.

I hope this becomes the place to discuss home prices, rent and the state of the construction industry.

I’ll kick it off with news that potential home sellers are pulling their property off the market in higher numbers than in years. This prevents prices from falling more than they have.

Nearly 85,000 sellers yanked their homes off the market in September — up 28 percent from a year earlier and the highest level for that month in eight years, according to a new Redfin analysis.

The reluctance to negotiate comes at a time when there are roughly half a million more sellers than buyers — a sharp turn from the COVID-19 pandemic market when owners called the shots and buyers were throwing elbows in bidding wars.

“Many homeowners who bought during the pandemic demand frenzy still expect sky-high prices,” Khan said. “They remember a seller’s market, so they’re hesitant to yield to buyers who want to negotiate the price down and/or ask for concessions.”

 

[Lazaran]

Probably can’t discuss the housing crisis & prices without factoring in anthropogenic climate change related disasters which are simultaneously destroying homes AND the items / materials that go into building new homes.

All that ^ as the global population, (demand) continues to rise…

 

[MajorRewrite]

GOP grapples with housing affordability message

“It’s a challenge for Republicans in general, because we’re kind of dominated by boomers,” said GOP pollster Brent Buchanan, adding that housing affordability concerns have come up more frequently in recent focus groups at his firm, Cygnal.

Republicans don’t even have concepts of a plan:

Housing costs are among a variety of economic pain points candidates will have to address next year. But as the GOP organizes to protect its control of Congress, some Republicans say the party hasn’t been able to coalesce around specific proposals for bringing down the cost of housing because Trump has yet to set a clear agenda on the issue. They’re playing catch-up with popular Democratic voices, including New York City Mayor-elect Zohran Mamdani, who won his seat largely on a platform of ideas for housing affordability.

Making the problem worse (oops):

Some of the president’s favored policies — like tariffs and dramaticallyincreased immigration enforcement — threaten to make homebuilding more expensive and difficult.

Data shows why housing affordability is a prime concern of voters:

Concern over housing costs comes amid growing evidence that homeownership is out of reach for many Americans. Home prices have increased 58 percent since 2010 when adjusted for inflation, pricing out millions of potential buyers, according to a 2024 analysis from Harvard University.

Young Americans have been hit especially hard. The median age of first-time homebuyers climbed to a record high of 40 this year, according to a reportpublished by the National Association of Realtors. Most Gen Z adults, between ages 18 and 28, don’t expect to ever be able to afford their own home.

 

[schism666]

didn't ben carson, the dude who had zero experience, fix our housing problems?

 

[BabyBoomer50s]

The federal capital gains tax exclusion for the sale of a primary residence hasn’t been increased since 1997. Millions of empty nesters are sitting on their houses rather than selling and downsizing. Raise the exclusion to reflect the increase in housing prices over the last 28 years and watch the inventory of houses on the market surge.

 

[MajorRewrite]

Santa Fe attempts to tackle affordability with two initiatives related to housing.

First, they’re increasing the minimum wage and tying future increases to the cost of living and local rent:

Santa Fe’s minimum wage will increase to $17.50 starting in 2027. The annual increase historically has been tied to consumer prices, but going forward a new blended formula will be used to calculate the annual increase, with the Consumer Price Index making up one half and fair market rent data making up the other.

Second, they’re imposing a 3% tax on home sales on the amount over $1 million (basically a wealth tax):

Santa Fe also is counting on revenue from a so-called mansion tax, which targets home sales over $1 million, to fuel a trust fund for affordable housing projects.

 

[Chadrone]

Republicans don’t even have concepts of a plan:

Say the open borders folks....LOL

That's what the immigration shit is about, retard.

Open up 10 MILLION housing units, see what happens to affordability

 

[MajorRewrite]

The federal capital gains tax exclusion for the sale of a primary residence hasn’t been increased since 1997. Millions of empty nesters are sitting on their houses rather than selling and downsizing. Raise the exclusion to reflect the increase in housing prices over the last 28 years and watch the inventory of houses on the market surge.

It’s an unsophisticated financial decision to not realize a financial windfall just to avoid a tax that is only a fraction of the windfall. But I suppose there are a lot of unsophisticated people out there, and raising the capital gains tax exclusion to reflect inflation is fine with me.

 

[BabyBoomer50s]

It’s an unsophisticated financial decision to not realize a financial windfall just to avoid a tax that is only a fraction of the windfall. But I suppose there are a lot of unsophisticated people out there, and raising the capital gains tax exclusion to reflect inflation is fine with me.

A 4 bedroom, 2000 square foot tract house in a decent neighborhood in California and other parts of the country where housing prices have soared can easily sell for over $2 million these days. That means 30 year + homeowners can be hit with hundreds of thousands of dollars in federal and state capital gains taxes. Many municipalities also tack on property transfer taxes as well. That explains why so many neighborhoods that were once full of kids are now full of seniors aging in place. The tax savings from not selling represent money that their heirs can enjoy tax free when they pass on.

There is a bipartisan bill in Congress that’s been languishing for years that would double the exemption from $250K single, $500K married to $500/$1 million. That would be a good start and help a lot of people, but appears to be going nowhere in the House.

 

[MajorRewrite]

where housing prices have soared can easily sell for over $2 million these days. That means 30 year + homeowners can be hit with hundreds of thousands of dollars in federal and state capital gains taxes.

As I said, passing up a windfall because you don’t want to pay taxes that are a fraction of that windfall is an unsophisticated financial decision.

 

[BabyBoomer50s]

As I said, passing up a windfall because you don’t want to pay taxes that are a fraction of that windfall is an unsophisticated financial decision.

Federal capital gains rates of 15% to 20%, plus state rates that can exceed 13% in some states, represent a hefty fraction. Millions of empty nesters are keeping their houses off the market because they’d rather give the hundreds of thousands of dollars that would be forfeited by selling their houses to their heirs rather than the government.

Smart taxpayers base their tax planning decisions on strategies that will minimize their tax burden. Lawmakers recognize this. That’s why the tax code includes things that incentivize certain activities like putting money into tax deferred retirement, healthcare, and education accounts, and making charitable contributions.

 

[MajorRewrite]

Federal capital gains rates of 15% to 20%, plus state rates that can exceed 13% in some states, represent a hefty fraction.

Not taking a windfall profit because you don’t want to pay a fraction of the profit in taxes is an unsophisticated financial decision.

Millions of empty nesters are keeping their houses off the market because they’d rather give the hundreds of thousands of dollars that would be forfeited by selling their houses to their heirs rather than the government.

Do you have any proof of those “millions”, or did you just make it up?

I’m an old person and I don’t know any old people who expect their heirs to live in their house after they pass. Their kids are off living their lives.

Smart taxpayers base their tax planning decisions on strategies that will minimize their tax burden. Lawmakers recognize this. That’s why the tax code includes things that incentivize certain activities like putting money into tax deferred retirement, healthcare, and education accounts, and charitable and contribution deductions.

Sure, but none of that is relevant to the discussion.

Anyway, as I said, I have no problem with raising the exemption because of inflation.

 

[BabyBoomer50s]

Not taking a windfall profit because you don’t want to pay a fraction of the profit in taxes is an unsophisticated financial decision.



Do you have any proof of those “millions”, or did you just make it up?

I’m an old person and I don’t know any old people who expect their heirs to live in their house after they pass. Their kids are off living their lives.



Sure, but none of that is relevant to the discussion.

Anyway, as I said, I have no problem with raising the exemption because of inflation.

Seniors have the highest homeownership rate of any demographic in the US. It’s not surprising that 79% of people over 65 (about 21 million) own homes. Nobody can say with precision how many of those folks would sell if the tax code were changed to incentivize sales. But we do know that members of Congress from states with high housing costs such as Representative Panetta (D CA) hear about it from constituents frequently enough to propose legislation.

If you believe saving money on taxes for the benefit of your heirs is “unsophisticated”, so be it. And there’s nothing in the federal tax code that requires occupancy by heirs to homes. The tax basis for inherited assets raises to market value upon death and transfer. Children or other relatives or friends who inherit a house can immediately sell it tax free.