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The supply and demand chart of real estate has gotten weird lately. Tech has generated unbelievable wealth, government is racking up debt to perpetuate this en
by RustyConsul 5y ago
The supply and demand chart of real estate has gotten weird lately.
Tech has generated unbelievable wealth, government is racking up debt to perpetuate this endless cycle of asset inflation,
while Airbnb further defined rent-seeking all leading to rapid asset consolidation of 'real-world assets'.
I don't have any idea what the answer is, but some of the asset classes are really stressing the idea of how a market can function with constrained liquidity and unlimited appetite. One non-obvious example but tangentially demonstrative to my point is Shibu Inu coin. With 80% of the 'Coin' being either burned or controled by insiders, and use of highly leveraged instruments(100-1000x) has lead to constrained liquidity and have sent it on an absolute surge. Granted, this example falls flat because as soon as the insiders attempt to cash out on their scheme, it all comes crashing down. But the real estate market is different because we are talking about a necessity, not some autistic cybernaught dystopia coin. Constrained liquidity on a necessity that also has very long lead times and regulatory bottle necks is going to lead to a revolution.
With 20% APR's on house prices, my generation will never be able to own a home in a city. Every metric imaginable seems to point to some asymptote in the late 2040's. Every generation seems to be living in the most interesting of times, but I truly believe my generation is going to be facing something bigger.