Housing market is being kept high by greed?

Question

So I’ve been looking at homes and the cheapest ways to build or buy a decent home. Mine and my husbands current budget for a home is $200k and we are realizing we can’t even get a ran down shack for that in our area. 
I then started looking into alternative homes like shipping container homes, pre fab kit homes, Barndominium homes. And even those are now the same price as regular stick homes to build. 
I came across a old YouTube video of one of the first 3D printed houses. How they are talking about this could end the high cost of owning a home issue. That they can make a small home for $4K. That this is a cheaper and more effective way of building homes. I then found a local place in my area that builds 3D printer homes and the price was just as high as a stick home 😒. 
But why if this was supposed to be a cheaper way. 
Are they purposely keeping the housing market and the cost of building a home high? It’s obvious with all these alternative ways of building a home that they could effectively figure out a way to build sturdy but cheaper homes. And it seems they have but are purposely keeping the cost high.

Answer

Supply and demand, not solely greed. As the housing market is insane right now, lowering costs wouldn’t change anything but increasing demand that already can’t be met. Businesses need money to flourish and expand. It’s unreasonable to expect them to function on barely any income or a loss. When competition comes into the market, that’s what drives prices down. I don’t think making a decent living for yourself should be considered greed. Also, remember that the background costs (staff, maintenance, supply fluctuations, and so on) are going to cause the price to bypass the “base price” of building a 3D home.

Answer

Yeah I think there's a bit of a housing bubble right now, somewhat due to scarcity. 
And the prices will, at some point, have to come down, as I understand the housing market.  
But I think landlords & the ability to hoard homes feed this issue, as well as the luxury developers who don't build many single family starter homes- like as many are needed. 
You aren't wrong here, home & land prices have sky rocketed within a few years.
I expected the housing market to crash again by now, after last year. And it might. I mean, only the wealthy can buy a home, that doesn't seem sustainable.

Answer

As other have said there’s a lot that goes into building a home- no matter the type. Shipping container and homes of the like can be very cost effective- IF you do most of the labor yourself. Plumbing, electricity, foundation work, finding land and grading it. Those all take experienced licensed professionals if you don’t know how to do it. That’s where a bulk of the cost is coming from. Also with container homes you need to hire a professional who is licensed in hazmat removal as some can contain highly toxic chemicals and you don’t want that as the walls of your home. As for building a house, lumber prices are skyrocketing due to availability. It’s all about supply and demand. Right now the demand is higher than the supply so the cost is going to go up.

Answer

The cost of building a home goes into not only the cost of materials, but the cost of labor, and every other little associated cost. Every person who touches anything has to get paid. It isn’t a matter of greed, it’s a matter of an increased cost of living. It’s not going to get any better. Even buying a used home will continue to be expensive, as the people selling need to be able to afford to buy again. It’s just the reality of home ownership.

Answer

It’s a supply issue in Colorado right now, not greed. It took us a few months to find a home but we finally got lucky and are under contract! Houses are only lasting 3-4 days on the market, receiving 10+ offers and are being sold for $20k - $60k over listing price. It’s absolutely insane. We just put our house on the market today and it’s looking like will be under contract by Monday.

Answer

You cannot post anonymously in this group. You need to fix that so this doesn’t get deleted

Answer

In my area (South Florida) a lot of the properties are bought by foreign investors. It’s driven the market super high for buying and renting.
Even when you put an offer in, another investor will come in with a cash offer, and will usually win the bid.
It’s become a serious crisis.

Answer

where i live you would barely be able to buy a one bedroom flat for £200k 😪

Answer

I think a lot of people were in the house market with covid and being stuck inside. I know a few out the people we know upgraded to have more room being home teaching kids and working. It might just be that a lot of people are house shopping so it’s more competitive. Before covid when we were looking houses would list like 9 am I’d see it like 10-11 contacts our realtor and by like 2-3 that day it already accepted an offer.

Answer

No. It’s simple. Supply and demand. It’s a sellers market right now. My husband and I have no choice but to build.

Housing market is being kept high by greed?

Let’s Glow

Glow is here for you on your path to pregnancy

25+ million

4.8 stars

20+

Getting Pregnant

Pregnancy

1st Year (Baby & You)

Baby Products