alt Hacker News>"I hope more people choose the same until the working age tranch of purchasing power isn't as available as they'd like and prices have to drop."
You just have to remember and keep in mind that the game is rigged. Housing is far from being a completely free market in this country. The structural political forces entrenched in maintaining home prices is second to none, from the top federal level all the way down to city councils, in a completely bipartisan way. The crisis of '08 was a generational event that we're not likely to see again in our lifetimes. Flattening and dips for sure, but a crash will not be allowed to happen; they'll just print enough to fix it, and leave the burden of inflation to anyone not owning assets.
Replies
Well, if we want to be technical about it, the 2008 crash did happen because some structural forces (banks) were perfectly happy to originate highly risky mortgages in exchange for higher face value rates.
Which had the side effect of allowing a lot of people who couldn't otherwise afford homes to purchase them by allowing them access to more leverage than they likely should have had.
So wealth isn't always aligned.
If they print enough money your other assets will go up (maybe enough to buy a house that has stayed flat in nominal terms)
This is basically the situation with housing in Canada actually, it's been down/flat in nominal terms since 2021 but if you owned US stocks during that time while waiting to buy then Canadian real estate is now much more affordable to you.
Agreed on every point, except I'm actually in Canada, so it's partly because housing didn't crash here that we're arguably even more turbofucked, afaik anyway. Although our current administration would like every working age person to believe that it's solely because of your president that we're screwed economically, the writing has been on the wall for a while; too much of our GDP is made up of residential real estate sales and the rental income generated by the scarcity of them and going into the pockets of people who borrowed endlessly against them.