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Here are a few people who don’t like inflation: - People who aren’t leveraged with a lot of debt. - People who are seeing wage stagnation while the cost of li
by mlac 5y ago
Here are a few people who don’t like inflation:
- People who aren’t leveraged with a lot of debt.
- People who are seeing wage stagnation while the cost of living goes up. The majority of jobs that keep the economy running aren’t like the tech sector where one can job hop to keep wages up.
- People who have a significant chunk of their savings in cash for a down payment, and they are seeing property values run away from them while the value of their money goes down. They are also seeing increasing costs, impacting their ability to save for a down payment.
- The people who are trying to buy a house that was $400k in 2005, that is now valued at 1.2M and requires $240k for a down payment.
- PaulDavisThe1st 5y ago> People who have a significant chunk of their savings in cash for a down payment, and they are seeing property values run away from them while the value of their money goes down. This is a very important issue, but it's not really inflation in any normal sense.
- cwkoss 5y agoWhy is that 'not really inflation'?
- PaulDavisThe1st 5y ago1) Housing costs are not part of a lot of measures of inflation. 2) Rental housing costs and owner-occupied housing costs are correlated but have a complex non-linear, non-monotonic relationship 3) Housing costs vary in absolute terms by substantial ratios in different areas 4) Housing costs vary in relative (CoL) terms in different areas 5) Changes in housing costs over a given time period can vary dramatically in different areas.