Summer of 2001 me and my grandparents visited relatives in the US. Our stay first took us to Virginia for a week, before we were driven half way across the continent to the bustling small town of Newton, IA.
Over the years ive thought about going back, but not got around to it. But i figured id look the place up recently. Googling Newton, IA i got a rundown on the place. The Maytag factory, lifeblood of the community, shut down in the 00s as they moved to mexico or some other shithole. This left the people of Newton to face the recession already reeling. According to a reddit post Newton is known for being a place with nothing to do, except smoke weed and/or cook meth.
So how is the place doing now, must be a good place to score a cheap home being both a small town and not in the best economy
Looking up the house i stayed at in 01 on Zillow, its not currently on the market. Last listed in 2012 at 139k. It has over the last 5 years gone from a estimated 150k to now pushing 240k.
And its the same for every current listing in Newton, IA in the same price range.
This one was estimated at 100k five years ago, just sold for 239k https://www.zillow.com/homedetails/407-W-8th-St-S-Newton-IA-50208/86981175_zpid/
Estimated at115k in 2020, sold for 215k https://www.zillow.com/homedetails/1015-W-3rd-St-S-Newton-IA-50208/86982395_zpid/
Sold for 75k in 2022, then 250k in 2024. Hell of a house flip it looks like. https://www.zillow.com/homedetails/706-1st-Ave-W-Newton-IA-50208/86981045_zpid/
Im glad im not looking for a house in Newton, Iowa.
I think it might be important to understand the perspective here, specifically noting that gains in an industry are not the same as a good industry.
Right now, the housing industry is growing. That is because the spring and summer represent the highest growth period for housing, so sales and construction will be going up this year. I can also tell you that the market is finally beginning to recover since covid and the "Refi Boom" (Refinance Boom), which made a lot of lenders money, but wasn't capable of creating sustainable growth. A lot of companies have gone under, and more specifically: a lot of people have left mortgages and real estate, including many banks.
So, yes, you are going to see growth in the industry, particularly year over year, but there is a horrible foundation to the housing market.
As you say, OP, New Construction homes will not come in under $150k.
I was just talking to a co-worker out of Montana, and they were telling me that the housing market is badly inflated there to the point that the average is 450k... in fucking Montana.
My favorite thing is to look into houses that have experienced... sudden, unexpected, warming events... and look at their prices.
Here's this beauty in Detroit. "Lots of potential!"