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This article did little to convince me we’re not in a bubble. The housing supply argument doesn’t hold up to me, as older people leave their homes newer people

This article did little to convince me we’re not in a bubble. The housing supply argument doesn’t hold up to me, as older people leave their homes newer people should be able to take there place. Base asset prices increasing because interest rates are down? Sure that’s finance 101. All asset classes (houses, stocks, cryptocurrency) only ever increasing in value? That’s too good to be true.

zapita 6y ago
Some areas in the country experience major population growth because that’s where the jobs are. In those areas not enough older people leave their homes to compensate for the influx of new residents. It’s not even close. The housing supply argument is completely accurate.
- almost_usual 6y ago
  Especially in places like the Bay Area where there is a huge influx of global talent.
- zepto 6y ago
  > In those areas not enough older people leave their homes to compensate for the influx of new residents. It’s not even close. This is true. The question is, why would they? Generally, with a few exceptions like Florida, the places where the jobs are are also the best places to be old.
lotsofpulp 6y ago
> All asset classes (houses, stocks, cryptocurrency) only ever increasing in value? That’s too good to be true. Not if the supply of money is increasing. Also, different regions of the US are experiencing very different levels of changes in price.
smalltalks 6y ago
> The housing supply argument doesn’t hold up to me Strongly disagree with you , I'm in Europe. I'm in the 25% richest of my state , I can't manage to rent a home because every time I contact a landowner for a property to rent there is 30+ person who applied before me within 4 hours... Covid-19 has created a "remote economy" boom as well as accelerated household project to move to another state and acquire a property or just to invest in real estate. Thus real estate market is performing just as expected... As long as the supply does not meet the demand the price goes up. For crypto it's different , 99% of crypto transactions are speculation base. It's by design.
- KptMarchewa 6y ago
  >Strongly disagree with you , I'm in Europe. I'm in the 25% richest of my state , I can't manage to rent a home because every time I contact a landowner for a property to rent there is 30+ person who applied before me within 4 hours... Why won't landlords raise prices then?
  - ChuckNorris89 6y ago
    >Why won't landlords raise prices then? Rent control?
    - KptMarchewa 6y ago
      Then you have your answer why you can't rent.
- deleted 6y ago
  [deleted]
dazc 6y ago
...as older people leave their homes newer people should be able to take there place. Here in the UK, older people have not been leaving their homes because of covid lockdowns which is one of the reasons why there is a shortage of houses to buy. The one exception is retirement apartments.
PragmaticPulp 6y ago
> The housing supply argument doesn’t hold up to me, as older people leave their homes newer people should be able to take there place. Not only are populations growing, but there is a net migration toward high demand areas. Look at real estate listings in many smaller Midwest cities and you’ll see large inventories of very nice, very affordable homes. Older people are moving out but no one is there to buy them. Meanwhile, many popular cities are fully built out. It’s musical chairs with existing housing inventory, plus a few high density reconstruction projects here and there. We thought remote work would enable people to move away from expensive cities, but it turns out many people choose to live in popular, high-demand areas once they no longer have to live near their office. As long as supply is fixed and demand continues to grow, prices will go up.
- refurb 6y ago
  Look at real estate listings in many smaller Midwest cities and you’ll see large inventories of very nice, very affordable homes. What? No, it’s the opposite. Suburban and rural homes have seen major price jumps in the past year while the most expensive cities have stagnated or dropped. For example Western MI has seen more price growth than the city of SF in the past year.
- meragrin_ 6y ago
  > Look at real estate listings in many smaller Midwest cities and you’ll see large inventories of very nice, very affordable homes. Older people are moving out but no one is there to buy them. Not in my small Midwest city. Many houses are being sold in hours. Most of the time I see a new realtor, it is already sale pending. I have little doubt houses are being sold without being put on the market. There are realtors asking around my neighborhood if anyone is looking to sell because they have buyers interested in the area.
- kfarr 6y ago
  As the others are commenting I half agree with your comment - there is a supply issue in high density areas AND there is a supply issue in low density areas.
- beiller 6y ago
subpixel 6y ago
This is not an article, it is a content marketing piece written by a property developer.

zapita 6y ago

Some areas in the country experience major population growth because that’s where the jobs are. In those areas not enough older people leave their homes to compensate for the influx of new residents. It’s not even close. The housing supply argument is completely accurate.

almost_usual 6y ago
Especially in places like the Bay Area where there is a huge influx of global talent.
zepto 6y ago
> In those areas not enough older people leave their homes to compensate for the influx of new residents. It’s not even close. This is true. The question is, why would they? Generally, with a few exceptions like Florida, the places where the jobs are are also the best places to be old.

lotsofpulp 6y ago

> All asset classes (houses, stocks, cryptocurrency) only ever increasing in value? That’s too good to be true. Not if the supply of money is increasing. Also, different regions of the US are experiencing very different levels of changes in price.

smalltalks 6y ago

> The housing supply argument doesn’t hold up to me Strongly disagree with you , I'm in Europe. I'm in the 25% richest of my state , I can't manage to rent a home because every time I contact a landowner for a property to rent there is 30+ person who applied before me within 4 hours... Covid-19 has created a "remote economy" boom as well as accelerated household project to move to another state and acquire a property or just to invest in real estate. Thus real estate market is performing just as expected... As long as the supply does not meet the demand the price goes up. For crypto it's different , 99% of crypto transactions are speculation base. It's by design.

KptMarchewa 6y ago
>Strongly disagree with you , I'm in Europe. I'm in the 25% richest of my state , I can't manage to rent a home because every time I contact a landowner for a property to rent there is 30+ person who applied before me within 4 hours... Why won't landlords raise prices then?
- ChuckNorris89 6y ago
  >Why won't landlords raise prices then? Rent control?
  - KptMarchewa 6y ago
    Then you have your answer why you can't rent.
deleted 6y ago
[deleted]

dazc 6y ago

...as older people leave their homes newer people should be able to take there place. Here in the UK, older people have not been leaving their homes because of covid lockdowns which is one of the reasons why there is a shortage of houses to buy. The one exception is retirement apartments.

PragmaticPulp 6y ago

> The housing supply argument doesn’t hold up to me, as older people leave their homes newer people should be able to take there place. Not only are populations growing, but there is a net migration toward high demand areas. Look at real estate listings in many smaller Midwest cities and you’ll see large inventories of very nice, very affordable homes. Older people are moving out but no one is there to buy them. Meanwhile, many popular cities are fully built out. It’s musical chairs with existing housing inventory, plus a few high density reconstruction projects here and there. We thought remote work would enable people to move away from expensive cities, but it turns out many people choose to live in popular, high-demand areas once they no longer have to live near their office. As long as supply is fixed and demand continues to grow, prices will go up.

refurb 6y ago
Look at real estate listings in many smaller Midwest cities and you’ll see large inventories of very nice, very affordable homes. What? No, it’s the opposite. Suburban and rural homes have seen major price jumps in the past year while the most expensive cities have stagnated or dropped. For example Western MI has seen more price growth than the city of SF in the past year.
meragrin_ 6y ago
> Look at real estate listings in many smaller Midwest cities and you’ll see large inventories of very nice, very affordable homes. Older people are moving out but no one is there to buy them. Not in my small Midwest city. Many houses are being sold in hours. Most of the time I see a new realtor, it is already sale pending. I have little doubt houses are being sold without being put on the market. There are realtors asking around my neighborhood if anyone is looking to sell because they have buyers interested in the area.
kfarr 6y ago
As the others are commenting I half agree with your comment - there is a supply issue in high density areas AND there is a supply issue in low density areas.
beiller 6y ago

subpixel 6y ago

This is not an article, it is a content marketing piece written by a property developer.