> And the rise in housing prices is a bubble created by monetary inflation. That doesn't account for the vast difference in price based on locale. Inflation i

> And the rise in housing prices is a bubble created by monetary inflation. That doesn't account for the vast difference in price based on locale. Inflation is not locale based, but housing prices definitely are. I don't doubt that monetary policy affects housing, because it makes it easier to get loans which will affect demand, and thus pricing, but it's not the whole story, and may not even be half the story depending on the area. For example, another thing that affected demand is urbanization. But, interestingly, the rate of urbanization seems to have decreased since the 1970s (and in some regions actually regressed in the 1970 in total, not in rate of change).[1] I think this needs to be accounted for in any coherent theory that tries to link monetary policy to lack of savings now compared to the past, when we already know that housing prices have risen much faster but that housing prices are also extremely locale based, which monetary policy isn't. Ultimately, while I think monetary is powerful in how it affects myriad things, I think we would be remiss to use it as an explanation for everything just because it's easy to point to. Most things are far more complex than that and have many inputs that affect them, and without careful examination we can't be sure if monetary policy was the majority of the reason, or even the primary reason. 1: https://en.wikipedia.org/wiki/Urbanization_in_the_United_States https://en.wikipedia.org/wiki/Urbanization_in_the_United_Sta...