CMV The rapid increase in housing prices in the US is not a bubble #realestate #realtor #mortgage

CMV: The rapid increase in housing prices in the US is not a bubble, but rather is part of a paradigm shift transition towards a highly unequal society.
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Big companies are incentivized to keep property prices high because then it keeps people desperate and willing to work for wages that are low.Not sure I follow this logic. If employee costs are rising (whether mortgage or rent) businesses will be faced with demands for increased wages.You can’t hire someone at $7/hr if they need to cover a $2000 rent.
If the prices reach the point where no one can afford them, they will go back down. You can only sell something for the amount people are willing and able to pay.
A highly unequal society itself is a bubble.When it gets to a certain level, some catalyst can cause it to pop.We've seen it before
It is more of a bubble from lower interest rates and low supply than from foreign investors. 2/3 of homes are owner occupied.
You’ve mentioned everything but the pandemic causing an exodus of high tech workers into other areas and driving up the demand.
Or maybe its cause your governments keeps stopping new housing from being developed.
You should read Parable of the Sower by Octavia E. Butler. It’s a really good book that covers living in a future US that has basically turned to anarchy because of global warming and some other factors. It’s crazy to see how much of our society Butler was able to predict nearly 30 years ago.
There’s a dramatic supply problem in the US with not enough housing and the available housing being much older. There’s a supply shortage too. Especially in areas of the US that have seen a huge number of people move there in the past few years. Texas, sun belt, Seattle, etc
Its transitionig to corporate communism. It wont be just houses, oxygen, clean air and water the corpos will own. Soon we will be asked to pay for having the right to die peacefully.
Isn't that what a bubble always wants you to think?
I think the bubble is not so much the house prices, as it is the wealth inequality bubble. Once a majority cant afford to live they will have no choice but to revolt, effectively destroying the market (or at least ownership) and crashing the prices back down to reasonable levels before continuing on their merry way again.
People will be priced out of the hottest markets, but new areas with cheaper properties will thrive.Most people can't afford real estate in Hawaii, so they don't live there.If you can't afford Austin, you can probably still afford Detroit.
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You think \*supply chain issues\* are why the prices of houses went up, and not the fact that 40% of all dollars came into existence in the last two years? You're way off with your reasoning.
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Don't forget all the airbnb scum with multiple properties.
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My theory... That's just inflation. Everybody got a 30% pay cut last year. It's a great way to give companies a booster
It's stagnant supply and ever increasing demand. It's not some great mystery.
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it's not capitalism anymore. We're living in a Neo-feudalism
Problem with this idea that it won't pop is that eventually the housing crisis is going to force rent control, then people are going to regret driving prices up as their projected investment flat lines. And the rent market is going to have then compete with banks and their mortgage loans. Banks don't want control over property but, to flip value.
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Big companies are incentivized to keep property prices high because then it keeps people desperate and willing to work for wages that are low.This makes no sense whatsoever. It's well established that companies pay higher wages in areas with higher housing prices, because they have to in order to attract employees at all.
Have you considered how banks and other big corporations need sellers in order to buy the properties? Do you expect a mass movement of property owners to sell to big companies? Where would they get their new house from? Or if new housing is so expensive, why would you expect folks to sell the property they currently own?
what if its both?
Just as a wrinkle 64.8% of American households own their homes so they benefit in the for of equity in the event of price increases.
Neo-feudal rentier society, just like what led to the French Revolution.
All over my area small box like homes are being built, and there for lease only. No new homes built are for sale . .
Totally agree. Unfortunately, I don't see it changing anytime soon.
The shift started when middle class people realised we too can be landlords.