Is there no solution to housing crisis?

[u/Comfortable-Wrap-493]

I feel like we are completely stuck.

I know the government can't just snap its fingers and force real estate prices to drop. Property is treated as a huge investment. It's not just the massive corporations and wealthy investors; even regular, lower-income people have their entire life savings tied up in the value of their homes. Crashing the market hurts them, too.

But if we don't find a solution, we are heading toward a future where only the rich will ever be able to afford buying land or a house.

Even renting is getting completely out of control. At the rate prices are increasing, soon only people with high-paying corporate jobs will be able to afford a basic apartment.

So what happens to everyone else? What about the working class, the people who actually sweat and break their backs to keep this country running? If the main workforce is priced out of both buying and renting, how does society even function? What about artistic jobs? What about creativity? Should all just join high paying collar jobs?

Does anyone see a realistic way out of this mess?

[u/JKlerk]

I know you this isn't what people want to hear but large corporations own a very small percentage of 1-4 family homes. The overwhelming majority of 1-4 family rental properties are owned by individuals (ie, your neighbors).

Net profit for homebuilders is around 8% which is a historic high.

The problems with housing are multifold. For starters it's capital intensive and there has been a chronic supply shortage for every year for over a decade. Cheap land that is within a reasonable commuting time to job centers is scarce. High rise multifamily is expensive to build. Demand for housing in the US is GLOBAL. I'll say it again. Demand for housing is GLOBAL. Immigrants with skillsets in technology, IT, science etc, have, multiple income streams, and multi-generational, can afford to place huge down payments.

The bright side is that baby boomers are beginning to age out in mass but unless there's a global depression I don't think their supply will cause prices to plummet.

[u/Sea-Chain7394 → u/JKlerk]

2 or 3 large corporations own every apartment complex in my city. Their stated goal is to earn returns above market rent. They collaborate and use pricing algorithms to constantly increase rent 10 to 20% each year

[u/JKlerk → u/Sea-Chain7394]

Apartments aren't 1-4 family homes. A 1-4 family is a 1-unit (ex, detached house, townhome, condo) 2-4 family (Duplex, Triplex, Quadruplex).

[u/Sea-Chain7394 → u/JKlerk]

I suppose. But if you cannot afford the 1-4 family hime because you are stuck paying rent that increases 10-20% each year then it's kinda a moot point who owns them.