The Sox House (green $ indicates our purchase price)
Locked in at 2.x% for 30 years like a boss.
1 Like
I do not approve of this scale.
5 Likes
What is the basis of this assertion?
anecdotal, like yours
Well according to this source, housing has experienced 3.08% inflation from 1980 - 2021.
Rent, on the other hand, has increased 8.86% per year over the same period, according to this source.
And while I unfortunately couldnāt find a good source for the appreciation of apartment buildings, itās going to track with the rents. Not perfectly so, and itās not an apples-to-apples comparison, but itās going to be similar.
And itās certainly not comparing ghetto to upscale areas, rentals skew way lower end than owner-occupied housing.
Perhaps worth noting is that Iām talking about apartment buildings specifically. I donāt have much experience with single-family rentals other than to say that Iām aware of some pretty strong opinions that thereās not much money to be made there. Single-family rental homes will appreciate in tandem with other single family homes.
1 Like
A brewery has the same effect Iāve noticed in a handful of areas
Two breweries exponentially does
In a low-mid COL area, not fully rural. But the area is burgeoning.
Depending whether you trust Realtor.com or Zillow, our house has appreciated between 8-16.5% for the last few years.
I feel Zillow overestimates consistently so trust the 8% more.
We pay about 260% of our mortgage. Have a 7/1 ARM at 1.875% for the 7 years, so the plan is to pay off in about 11-12 total. We own about 44% of the house after 4 years. (The ARM was from a refi so itāll last more than 3 additional years. Have about 5 remaining.)
Thinking about this some more, what causes appreciation in rental units is an increase in the number of households that are renting above & beyond the increase in supply.
Thatās why rent goes up faster than inflation. And while the market is quite different from other kinds of real estate (when the economy is going gangbusters that can depress the value of an apartment building because renters start buying and there may not be new renters to take their place) over time the population is growing faster than the supply of apartments.
This is also why houses tend to appreciate faster than inflation. Itās largely supply growth of housing units is consistently less than population growth, plus as you get more sprawl being closer to the middle of the sprawl becomes worth more, and if those closer areas never urbanized (i.e. got more dense) then those suburban homes become worth a lot.
Yeah, I think this is hugely in the low-end rentalsā favor since many of these buildings tend to be pretty urban.
hat tip to Marginal Revolution
Today is a busy day. We have a chimney company repairing a non-operational chimney, but there were leaks around it, so it needs to be fixed. Could have been torn down, but it would have meant rebuilding part of the roof. We have the pool company out to open the pool. I need to have a replacement window replaced (less than 3 years old) since the seal is corrupt. Finally, the lawn guys are coming later today as well. Pretty busy day here.
I donāt understand this statement. What does that mean for a residential pool?
I believe that in some places a home pool is āstored for the winter.ā meaning, there is a cover on it, with all the leaves, and that the pool water has not been upkept, meaning there are live organisms in it. Someone has to put it all back to normal. And if you are not the handypoolman, you hire someone.
I do not have this problem. My pool is open all year long, waterās chlorine levels checked weekly, leaves removed, etc.
Only thing I need to do is get a new heater. Just canāt get in if itās under 75.
I guess you qualify.
Iām the Northeast, we cover our pools to keep out leaves, etc. the pump and filter are disconnected so they donāt freeze either. A bunch of chemicals get put in the pool, they test for unbalanced situations and adjust. Daveās a lot of bending for an old guy.
Til some people donāt have to close and open their pool every year.
Two breweries at the same time??? 
But it isnāt. Fees and commissions eat a chunk of equity at the same of sale and homes donāt always appreciate. I wouldnāt be surprised if many people who are buying today are underwater in a few years.