Breaking Bad? With house prices this high in the US you just might have to… Meth lab listed for over $1.5 million

House seekers in the San Jose area of Los Angeles may soon have something in common with the infamous Walter-Jesse duo from Breaking Bad. An undercover drugs business? Not really. But a “six bed, 4 bath inactive meth lab” has been listed as a housing unit for $155,000. 

Such is the “current state of the housing market”, as per a post by the Kobeissi Letter on social media site X, formerly Twitter.

“An inactive meth lab was just listed for sale for $1.55 million in San Jose, California. For nearly $1.6 million, you can buy a home that is effectively a tear down with a built-in meth lab,” the post read, along with a screenshot of the listing on Zillow.

The capital markets commentator however did not stop there - pointing out their disbelief at the  “worst part”.

“The worst part? They just raised the price by $125,000. You can't make this up.” the post added. 

In replies to their post, Kobeissi Letter confirmed the California listing is real, adding that this “highlights how much markets have changed”.

“While this is comical, it highlights how much markets have changed. Properties that were worthless at one point are now worth millions. Affordability continues to fall as prices and rates rise simultanously,” a second post from the account read. 

Housing Market Crisis

The cost of buying a house instead of renting one is “the most extreme” its been in the United States at least since 1996, with average mortagage payments 52 percent higher than average apartment rent, as per a Wall Street Journal report. 

The report notes that “there's never been a worse time” buy a house instead of renting. 

In August 2023, US mortgage rates jumped to the highest level in more than 20 years. The average for a 30-year, fixed loan was 7.09 percent, the highest since April 2002, according to Freddie Mac.

The recent climb in borrowing costs, and home prices that are pumped up by a critical inventory shortage, have pushed housing affordability to its worst point since 1984, according to Black Knight Inc. Sales of previously owned homes have declined as the lack of listings, escalating costs and worries over the economy hold back many would-be buyers.