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I think people have just increased the fraction of their income they are willing to spend. If people in Austin will spend 50% of income instead of a third price
by ryan93 5y ago
I think people have just increased the fraction of their income they are willing to spend. If people in Austin will spend 50% of income instead of a third prices can go up a lot
- tayo42 5y agoPeople over spending is the only thing that makes sense
- Bombthecat 5y agoYes, this. There was a question why people want to move to Munich even though it is the most expensive city in germany. Answer : because it is a city! Disco, cinema, stuff to do in your free time. And more and more people are willing to sacrifice 2/3 (or more) of their income just to live in the city. (also part of the first question) So, i dont see rent going down anytime soon. And if there will be a recession, even more people are willing to sacrifice everything, just to move to the city.
- itsoktocry 5y ago>If people in Austin will spend 50% of income instead of a third prices can go up a lot Exactly this. Somewhere along the lines in the past decade or so, it became completely normal to lend people 10x their income to buy a home, when historically that figure was 3.5x.