Depressed About Cost of Housing - Snap Me Out of it Please
Going to preface by saying that I'm single and currently rent a 1br in a HCOL city substantially below the city's median 1BR cost so I have a good deal and have been offered an opportunity to save a lot each month. I'm lucky. I aggressively invest this excess amount and max out retirement accts,a traditional account, etc. Something like 40% of my comp gets saved/invested now. I recently gauged my income level and relative to peers in my city and its in the 90+ percentile. I'm a type that believes that housing is a liability, not an asset and primary home ownership isn't always the greatest use of $ net of fees/cost of ownership. By renting what I'm in now, I have extra $, flexibility and freedom. Therefore, I should be feeling good about where I'm at, right?
Instead, I am looking around at housing markets I usually pay attention to (even up to 40 miles away) and it is just insanely discouraging looking at the cost of a split level shit hole in an OK area. It feels like there is never going to be the entry point that I'm waiting for and cost of living will get exponentially more expensive. I don't even want a house but feel like I'm not pacing with these people that are sitting on fat paper gains on their valuations. With expected returns of the UScoming back down to the mid/low single digits, is a primary residence (in a rock solid, HCOL market) a better use of capital than it used to be even with higher mtg rates? What is going to cause the RE market to soften up?
The cost of housing topic was discussed on another thread but with this one, I'm trying to see how people are thinking about cost of housing and the rent versus buy proposition. Any insights from those that feel this way or are actively looking at single family houses would be helpful. I realistically won't be owning for the next five years or so but the prospect of buying something where monthly P&I is around 30% ofis just not going to happen.