u/JoshTheKid7

Out of curiosity, I’ve been researching employment and home prices in towns of 2-10k people.

In many, I could not find many listed jobs above $20 an hour. Maybe the odd senior management position for a local business, but these roles were typically 20-25% below similar compensations elsewhere.

Despite this, home prices were still $300-$400k. In towns 2+ hours from any city.

One case I studied had a median household income of ~$40k. Poverty rate of ~22% (United States). Median home price of $320k. However, a 45% homeownership rate.

The local economies appear, from the outside, to be unable to support such a market.

Obviously, something is propping it up. Someone is buying the homes, and someone is renting the $1,300/month 500 sq foot 1 bed 1 baths.

Homeownership rates are still 40-65% So the vast majority of these homes must be pre-2020 mortgages. What happens when they hit the market? There’s no way the markets can support these valuations in smaller towns.

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u/JoshTheKid7 — 26 days ago