One of the neighbors who popped in to bid Southern Belle adieu is also moving. She was priced out of the house she is renting.
She told us of the 1600 square-feet house next to where she lived. The owner divided it into a duplex and then asked $2400 for each half. He had to drop the price to $2000 per unit before he got tenants, but that is still pretty stiff rates, $2000 a month for an 800 square-foot rental.
Of course, her landlord is raising the rent to match the $2.50 per month per square-foot.
Working backwards, that suggests a rational selling price of about $560,000 for 1600 square-feet.
Walking Southern Belle's dog around the neighborhood, I saw a house with a Bentley SUV ($200k), a Lexus, a BMW and a Chevy Equinox. I asked SB about it and she informed me that the owners purchased the property, razed the existing structure and built the (modest) 3000 square-foot structure.
SB and HH lived in a garage behind one of the "real" houses.
The cost of housing excludes most working stiffs. The irony is so delicious that it burns. One of the neighbors was lamenting that she could not find anybody who was willing to install hurricane shutters AT ANY PRICE. Everybody who was of a demographic who could do it lived in Homestead and there were more than enough people in their own zipcode who needed hurricane shutters installed. Why should they drive 45 minutes (minimum) each way to install hers?
As outrageous as that looks, the other end of the state, they can’t recruit out of state teachers because there aren’t any affordable units for anyone, much less essential workers.
ReplyDeleteI know a young lady that had to quit a lucrative job in San Fransisco because she couldn't find a place to live and was having to drive to Sacramento to find a place to live.
ReplyDeleteWhile bustling busy cities have high demand and housing prices are rising, prices are only skyrocketing in areas that restrict develop, or make it so difficult that it takes high prices to compensate the developer for the difficulty.
ReplyDeleteFor example, compare Houston or Miami to San Francisco - the first two are growing more but have lower house prices because new building is (relatively) easy.
San Francisco, LA, Seattle, etc are much worse than Miami for cost even though they are essentially stagnant.
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