I stayed at an Airbnb recently And I was curious what the actual value of it was so I looked it up on Zillow. Sold in 2015 for 350k, sold again in 2022 for $750k, now listed for sale 1.2 million. It’s a cabin in North Carolina, literally nothing special. I remember back before 2020 there was tons of mountain and cabins and homes and stuff like that anywhere from 2:50 to 500K. Now you won’t find a single one less than 800k…

Regular homes are just as bad. I’m seeing homes in my area that sold for around $200 to 300K in 2019, now they are 500k and above. I don’t understand how this makes any sense? Salaries were not doubled, but somehow the price of all homes are now twice as much. Is this some sort of cost fixing scheme by the real estate industry to just drive up the price of homes and double them or something? Because it doesn’t really make sense to me I guess.

  • mesamune@lemmy.worldEnglish
    51·
    7 days ago

    In my area:

    1. My area is a relatively Low cost of living area surrounded by people that have money. When they want to work remote but still stay in the same state, some % come east for cheap housing. They can pay cash for houses.
    2. Corporations are buying houses, then renting. Less houses on the market. They also pay cash for houses.
    3. People with multiple houses can use the aforementioned houses to buy up more housing to rent, creating a investment loop. Its in their best interest to keep the houses as small businesses/revenue streams.
    4. There are apps that hook into MLS (example: https://www.mlslistings.com/more/mobile-app/) which means investors can make an offer faster than the general public or set up alerts (think stock market) that hook into the API. Ever wonder why some houses get multiple offers before or right after they are listed? This only works if the company/entity selling the property decides to add in the info into MLS and not just go with the defaults.
    5. More people are alive today than yesterday. They need housing. There are less houses getting built, or being built for owning. For renting: https://www.youtube.com/watch?v=mrxZqPVFTag

    Source: Used to work for a company that did this sort of buy/selling of properties.