3 ms·

Housing (rent specifically) rised and most likely won't fall back. In Houston rent went up by around 25% in the past 6 months alone. This is extremely serious,

• m0llusk 5y ago
  Housing doesn't go down. So it will take inflation to bring extreme commodity prices down. This is how bubbles work and is why inflation is essential.
  • muzani 5y ago
    We have a housing bubble popping where I live. Prices dropped a little, about 20%. What really happened was the loan terms became better: no deposit, bank pays 5 years for free, 20% cashback, and so on. Thankfully salary inflation here has been great.
• refurb 5y ago
  I heard this exact same thing about oil prices in 2006. “$4/gal gas is here to stay! There will never be cheap gas again!” A year later it was $1.26/gal.
• ldbooth 5y ago
  2 possibilities imo. 1-asset prices reflect inflation due to M2 increase, cpi will catch up. 2-asset prices are up due to low bond yields, bond investors moved into retail assets such as housing (like Blackrock) and this is driving up costs and thus rent. If the fed raises interest rates, the corporate debt levels are unsustainable and a recession will ensue, but housing will return to normal prices as institutional bond purchases resume. If not, more of the same. This is all 2008 and quantitative easing playing out... The fed wants to prevent market busts and as a result will create more drastic busts playing with fire.