Cities are becoming even more unaffordable in the country and it seems that the trend is set to continue for the time being.
The future of America is unfolding in Seattle. This year, CNBC reports, its technology jobs have increased by 21 percent but housing prices rose by as much as 12 percent, making it harder for others to keep up, especially those who have built the city from coffee grounds, lumber and airplanes.
The sad reality is that only a third of homebuyers outside of technology say that they are confident and would be able to afford to live in the state in 10 years. What is even sadder is that the same fate will befall Austin, Boston, Denver, Portland and, in time, other American cities. They will all become too expensive in the coming years.
The problem? It is housing. When the talk goes to cost of living, it does not point out to food, transportation or clothing, which basically have the same cost anywere but it is entirely different when come to housing, CNBC continues.
Housing, of all things, has shortage. To quote the news portal,"For the 40 years prior to 2008, ground was broken on an average of nearly 1.6 million housing units per year. Starts over the past seven years averaged 788,000; even in 2015, a boom year, starts were only 1.1 million."
Looking at supply and demand, from the start of 2010 upt to 2013, the prices of homes have spiked to 53 higher compared to the construction cost, whereas way back in the '90s, it was 33 percent higher than construction cost.
There were 40 percent fewer homes on the market in Seattle a year ago but this summer, there was a flip-flop on the plan to support high-denstiy construction when the neighborhood associations revolted although only 37 percent of Seattle homebuyers are pro denser development. With its racial mixture a cornerstone of the failed plan, the contest to maintain local character has become mixed with difficult repercussions.
A middle-class-friendly housing policy would be welcomed but it will cause a glut of housing, and yet the existing causes a shortage causing cities to become too expensive. At the end of the day, working on improving the affordability and keeping the diversity of the neighborhoods can enrich the nation as well as the character and history of its people.
