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Yes, but unlike the 1980s we've been underbuilding housing since the 90s. There were also more first-time buyer incentives available in the 1980s.
by spamizbad 5y ago
Yes, but unlike the 1980s we've been underbuilding housing since the 90s. There were also more first-time buyer incentives available in the 1980s.
- deleted 5y ago[deleted]
- HarryHirsch 5y agoExactly that - it's not clear how interest raises in a time of shortage will do something about the shortage. If anything, they discourage investment. And what's with buyer incentives? They are just a conduit from the taxpayer to Big Finance.
- JKCalhoun 5y agoAt the same time, the higher interest rate will causes existing home-owners to "stay put" rather than jump to another home and pay 5% (unless they are down-sizing and able to make a cash offer). So the supply problem is not addressed. Might make new construction cheaper though?