News What's Driving the High Cost of Homes in Major Cities?

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Government regulation is identified as a significant factor driving up housing prices in major cities, with new research suggesting an increase of approximately $200,000 due to these regulations. Economists argue that such regulations inadvertently push low-income individuals out of urban areas, exacerbating affordability issues. The influx of residents from more expensive regions also contributes to rising prices, as they are willing to pay premium rates for real estate. Additionally, speculation and optimism about real estate appreciation further inflate home values. Overall, the combination of regulatory impacts, demographic shifts, and market speculation creates a challenging environment for affordable housing in urban centers.
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chroot said:
I continually explained that to make a house profitable, you have to be able to get 6-8% appreciation per year, just to cover the tax, interest, and maintenance expenses.

The one point they do have is that you can count doing away with any rent you might pay as an alternative on the plus side of the balance sheet along with the appreciation. But you're definitely right that that frequently still is not enough to offset the many costs.
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