Second homes are top 5% stuff [1].
If you have a taste for the interior, there are gorgeous places where five figures buys a home, or less than $10k down and $1k/month. That's something more that just the rich can afford, particularly if the first home is in a similarly-affordable place.
[1] https://www.statista.com/statistics/228894/people-living-in-...
.....such as?
Prices have gone up everywhere.
Tawas City, MI is hours from the nearest medium-sized town. There are no jobs, no social activities besides bars, very few restaurants, and no five figure homes for sale ($150K will get you 1450 square feet).
Mesick, MI. Literally nothing but forest, and 1.2 empty acres is $125K.
Clarion, IA. There is nothing beautiful about anywhere in Iowa. You can, however, get a nearly-falling down 1100 square foot house for $85K (everything else on the market, and there's a bunch, is 6 figures).
Where are these gorgeous places where rich people haven't already bought all the homes?
Five figures for a house? Riiight. In 1980, sure. Or if you like buying a house of cardboard.
Naive question, but wouldn’t increased demand raise the price, not lower it? Why’s Florida different?
I feel attacked. You haven't been to Dubuque.
Now, I think the market will normalize a bit but still. There is no such thing as a starter house unless you're willing to give up a good education for your kids, live in bumfuck nowhere (and that's coming from someone who lives in Des Moines, IA-- which many people would consider nowhere).
Move rural? Good luck. Small towns are drying up for any/all services. Amazon and co are pushing out anything local for shopping. Cost of living for stuff not related to housing is just as high or HIGHER due to lack of infrastructure, plus the lack of meaningful choices (small town stores have higher prices due to lack of purchasing power and limited suppliers).
I'm not saying it's impossible, live off the grid and have your own farm. But doing that with a family, while working 60+ hours a week just to pay your rent, unless you're an SWE. The crunch is REAL for most people.
I'm not sure why someone would assert this unrealistic calculation, except one might graciously interpret it to be describing multiple situations...despite that being completely useless information.
When interest rates were bottomed out, this statement in total wasn't true (at least the $1k/mo part for a 500k loan). I happened to end up in a home that was $490 with 7k down and 2.5% and the payment is naturally above $2k/mo. Finding this situation today is impossible, ofc.