50 Year Mortgage

[Joe Flacco]

We need to build homes that are more affordable. The problem is that builders only make money on big homes. I grew up in a 920sf home with a finished basement. 3 kids. 1.5 bath. 1 car garage. It was small. Didn’t think anything of it. Just about all the homes on the block were similar size. We don’t see home developments like that. Reason: no money in it for builders. Expectations have something to do with affordability as well. Remember the Sears modular home? Great idea. They sold a ton of them. But then the Great Depression hit.

They don't only make money on big homes. They build what yields the most profit. You can't build small and cheap homes on high value lots.

Look at some of the homes being built in texas. They are selling new homes in a lot of areas for around $300k-$400k. The kind of houses you grew up in, but new.

 

[Airstream]

They don't only make money on big homes. They build what yields the most profit. You can't build small and cheap homes on high value lots.

Look at some of the homes being built in texas. They are selling new homes in a lot of areas for around $300k-$400k.

Builder profit on larger homes is a given. I once owned a home building business. And I can tell you from experience we made more money on larger homes. There IS an economy of scale on larger homes. The other way builders can make money is if they can build numerous homes all with basically same floor plans, etc. Then they can pre-buy product in large quantities. But you are correct it depends upon land values. And some of that is a regulatory and zoning issue.

 

[Fernando]

We need to build homes that are more affordable. The problem is that builders only make money on big homes. I grew up in a 920sf home with a finished basement. 3 kids. 1.5 bath. 1 car garage. It was small. Didn’t think anything of it. Just about all the homes on the block were similar size. We don’t see home developments like that. Reason: no money in it for builders. Expectations have something to do with affordability as well. Remember the Sears modular home? Great idea. They sold a ton of them. But then the Great Depression hit.

Most of the older homes around here (50+ years old) are like 1,000-1,500 sf. So small to today's standards but was acceptable back then.
Americans today expect larger size homes with all the modern conveniences and up to building codes. Expensive to build.
Again more good income jobs and less need for affordable housing.

 

[Airstream]

Most of the older homes around here (50+ years old) are like 1,000-1,500 sf. So small to today's standards but was acceptable back then.
Americans today expect larger size homes with all the modern conveniences and up to building codes. Expensive to build.
Again more good income jobs and less need for affordable housing.

Under Biden people lost about $3500 per year in purchasing power due to inflation. Since Trump has been elected he has clawed back about $1200 of purchasing power. If that government spending and debt doesn’t get under control there will continue to be an affordability issue. But expectations play into it as well. Maybe people need to change their thinking.

 

[gregb]

https://www.realtor.com/news/trends/first-time-homebuyer-median-age-2025/

 

[Fernando]

Under Biden people lost about $3500 per year in purchasing power due to inflation. Since Trump has been elected he has clawed back about $1200 of purchasing power. If that government spending and debt doesn’t get under control there will continue to be an affordability issue. But expectations play into it as well. Maybe people need to change their thinking.

Trump's tariffs continue prices increasing. Trump seeing his mistakes and hopefully with Supreme Court, will lower our tariffs.

 

[Airstream]

Note that the jump took place after 2020, and especially when rates went up in 2024.

Trump's tariffs continue prices increasing. Trump seeing his mistakes and hopefully with Supreme Court, will lower our tariffs.

Prove it. Show me where the inflation is.

 

[Fernando]

Note that the jump took place after 2020, and especially when rates went up in 2024.

Prove it. Show me where the inflation is.

Oddly, I didn't see that much inflation at Costco during Biden. Early this year still not.
Past few months, I have seen prices increased for many products. Not a little but a lot.
Trump seeing/hearing this too and now making more effort to stop prices from increasing despite egg prices down back to normal.

 

[Airstream]

Oddly, I didn't see that much inflation at Costco during Biden. Early this year still not.
Past few months, I have seen prices increased for many products. Not a little but a lot.
Trump seeing/hearing this too and now making more effort to stop prices from increasing despite egg prices down back to normal.

You are just BSing me if you say you didn’t see prices going up under Biden. And some prices are going up not because of tariffs, but because of bad weather, etc. For example beef prices are up because of drought conditions that resulted in farmers culling their herds and not producing as many feeder calfs. The same is true for coffee prices. So just saying a price went up, there are many reasons for that.

 

[Joe Flacco]

https://www.realtor.com/news/trends/first-time-homebuyer-median-age-2025/

View attachment 104881

Wow that is a big jump for fthb in 2025