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Low interest rates inflate real estate prices and rents. This is murdering the lower and middle class, especially those who do not yet own a home or who had to
by api 9y ago
Low interest rates inflate real estate prices and rents. This is murdering the lower and middle class, especially those who do not yet own a home or who had to take out some kind of ridiculous suicide loan to squeeze into one.
I know people paying >50% of their income on an over-inflated mortgage for a starter home.
- TheCowboy 9y agoThere isn't a clear one-to-one relation here. The causes for inflation in real estate prices and rents are not as simple as "the fed keeps rates too low". An increase in the price of rent should lead to an increase in construction, which leads to an increase in real estate value. The return on investment is there to be made, and the obstacle isn't low interest rates.