8 things to learn before buying your first house Becoming a first time home buyer is one of the biggest challenges and decisions in our lives and also one of our biggest dreams, and for us, as
Why is the Cost of Living so High?
Dated: June 4 2022
Let’s address the elephant in the room: the cost of living is extremely high. My entire life I thought 1 thousand dollars was a lot of money until I got older and realized how fast you can spend it. My grandfather loves to talk about how gas used to be 10 cents per gallon, he always finishes with “things used to be so easy, what happened?” Allow me to explain, I’ll explore the major factors that drove prices up.
First let’s talk about the population. As time marches on, the population continues to grow, and the more tiny humans being made means more housing needs to be built. This is an economic relationship called supply and demand. if there is low demand and a high supply( meaning a lot of vacant homes) prices would be dirt cheap. But it’s the opposite, so there is a supply that can’t stretch to meet the demand of the growing population, and prices are currently going through the roof.
Secondly, the cost of living was raised due to the cost of materials. Let me put it like this, if you bake cakes for a living and sold them for $10 a piece, would you continue to sell them for $10 if the price of eggs went up? Of course not, because you would be lowering your profits. it’s the same thing. The price of lumber has more than doubled in the past 10 years. If the materials cost more, then the labor will be raised to compensate for the price rise.
The last thing I will mention is the number of available homes. This ties directly into the increasing population. Florida is a very popular state. we get snowbirds from the northeast, mountain climbers wanting to experience flat land from the Midwest, and rave happy millennials coming from the West coast. That’s a lot of people looking for a place to live, on top of the Floridians already here. Even if every house/apartment that is on the verge of foreclosure/eviction became available today, there would still be a long line of people waiting for housing. That should paint a picture of the scarcity of homes and also explain the sudden increase in the cost of living.
In closing, there are many more factors that can explain the price rise but these are the top 3. With the way things are going, I’m not sure if prices will drop any time soon, so make sure your finances are in order before you attempt to buy!
I was born and raised in Palm Beach County, Florida. My family and I moved all over the place so as a child I never understood the importance of relocating. Of course that changed with time. My ....