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 haven't seen that level of price increase in 3-4 years. It's increased, but for the most part, only with inflation. The issue is that the prices are far too high, it's impossible to build cheaper homes below $150k, tons of supply is currently being syphoned off by immigration, renting, investments, and Vrbo (or similar).
I'm not sure it will be possible to stop the price collapse as it starts. Once people realize they won't be able to make money out of renting or investments, people will start selling. That will collapse housing prices, and probably take the bond market and global economy with it.
That's why I'm not really worried about anything with tariffs. You could, in theory, grow out of this shit-eating-situation... but you'll need literal gilded age levels of growth, and it would require millions of people getting back to work and being productive.
In west Michigan the average 200k home in 2019-20 is listing at 340-350k currently. The national average is at least a 50k jump in most areas, over 100k in the larger growing economies.