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I wonder that same thing today. To me, it feels like the bubble burst in 2007. But, that we're still here today, seems to indicate it didn't really pop, but ins
by dfee 8y ago
I wonder that same thing today. To me, it feels like the bubble burst in 2007. But, that we're still here today, seems to indicate it didn't really pop, but instead it's a side-effect of another system.
Recently in Southern California, listening to the local NPR affiliate, they were covering a candidate race where one candidate accused the other of not hearing his constituents: ~"House prices have fallen, and that's bad for our voters. I hear them, and he doesn't."
I feel like housing in California is unsustainable: pricing, development, etc.
What's strange is that the candidate doing the accusation was a Democrat. I assume he benefits from loose borders (more housing demand), but constituents who can't actually vote and get their voices heard (immigrants wanting affordable housing, not what begins to approach slum-lord style ghettos).
- criddell 8y ago> "House prices have fallen, and that's bad for our voters. I hear them, and he doesn't." There are a few things that are absolutely essential to life: housing, clothing, food are among the most basic. If the price of clothing or food increased at the same rate as houusing, people would be rioting.
- HillaryBriss 8y ago> "House prices have fallen ..." huh? where in Southern California? over what time period?
- aero142 8y agoI've got a working theory that I am bouncing around my head. It's basically thoughts about the efficiency of markets and their ability to price in all value provided. The biggest growth is in housing and education. Basically, if moving from Iowa to Silicon Valley will result in a net gain in income, then housing will adjust to consume as much of that gain as possible. If education will result in higher lifetime earnings, then the price of an education will rise to capture as much of this value as possible.
- gnarcoregrizz 8y agohousing and education are also targets for federal subsidies
- zjaffee 8y agoI think the problem in California is that investors can go in and buy housing at unsustainable prices, and just rent it out, since their long term goal isn't to house themselves, but to have an asset that has a fixed return value at a near minimum, especially given the taxes hardly increase year over year.