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Housing prices are affected by monetary and psychological aspects just like the stock market and inflation are. If people stop believing housing is a good inve

Housing prices are affected by monetary and psychological aspects just like the stock market and inflation are. If people stop believing housing is a good investment then prices will fall.

mschuster91 4y ago
> If people stop believing housing is a good investment then prices will fall. People need something to live in though, and as long as the demand for places to live is higher than the supply, rents and purchase prices will keep going up.
- mupuff1234 4y ago
  The population hasn't increased much (or maybe at all) in the last 2 years yet prices have sky rocketed - why is that?
  - mschuster91 4y ago
    Would you choose to invite a recurring thousands-dollars-a-month expense in a time of economic uncertainity? Children are expensive AF - childbirth alone is a risk of dozens of thousands of dollars, you need more living space, clothing, diapers, food, more doctor visits, the person bearing the baby may not be able to work for a time which means less income, you need babysitters, ...
  - jandrese 4y ago
    Capitalism. The government has completely failed its job of monetary policy, which in broad strokes is to provide back pressure on capitalism's natural tendency to have money move upward. Today there is way too much money at the top and it has nowhere to go. The economy is less and less resembling a healthy marketplace and more medieval feudalism, with lords stuck in their opulent castles while the peasants farm dirt. The more evenly money is spread across the entire spectrum of society the better the markets work. This is one of the side effects of highly progressive taxation and strong social programs--a healthy economy. Instead our politicians have been focused on reducing taxes for the ultra rich and this has only accelerated the consolidation of money at the top, which is why our economy is getting heavily distorted and why for people on the bottom they have only been getting poorer. Once you factor in rent/mortgage, health care, and inflation versus wage growth the average American is backsliding and has been doing so for many years now. This is a massive failure of fiscal policy, but nobody in Washington cares because the lobbyists and special interests are happy.
    - imtringued 4y ago
      Pretty much. When money consolidates at the top, you effectively get a centrally planned economy. The problem though isn't fiscal policy which is a bandaid for an underlying problem. The rich don't spend their money, they endlessly reinvest it to grow their share of the economy until they have become such a large parasite that the host economy collapses, which is why politicians are constantly trying to grow the economy faster that the parasite can suck it dry.
  - digisign 4y ago
    Inflation manufactured by the FED to prevent an economic collapse.

Housing prices are affected by monetary and psychological aspects just like the stock market and inflation are. If people stop believing housing is a good investment then prices will fall.

mschuster91 4y ago

> If people stop believing housing is a good investment then prices will fall. People need something to live in though, and as long as the demand for places to live is higher than the supply, rents and purchase prices will keep going up.

mupuff1234 4y ago
The population hasn't increased much (or maybe at all) in the last 2 years yet prices have sky rocketed - why is that?
- mschuster91 4y ago
  Would you choose to invite a recurring thousands-dollars-a-month expense in a time of economic uncertainity? Children are expensive AF - childbirth alone is a risk of dozens of thousands of dollars, you need more living space, clothing, diapers, food, more doctor visits, the person bearing the baby may not be able to work for a time which means less income, you need babysitters, ...
- jandrese 4y ago
  Capitalism. The government has completely failed its job of monetary policy, which in broad strokes is to provide back pressure on capitalism's natural tendency to have money move upward. Today there is way too much money at the top and it has nowhere to go. The economy is less and less resembling a healthy marketplace and more medieval feudalism, with lords stuck in their opulent castles while the peasants farm dirt. The more evenly money is spread across the entire spectrum of society the better the markets work. This is one of the side effects of highly progressive taxation and strong social programs--a healthy economy. Instead our politicians have been focused on reducing taxes for the ultra rich and this has only accelerated the consolidation of money at the top, which is why our economy is getting heavily distorted and why for people on the bottom they have only been getting poorer. Once you factor in rent/mortgage, health care, and inflation versus wage growth the average American is backsliding and has been doing so for many years now. This is a massive failure of fiscal policy, but nobody in Washington cares because the lobbyists and special interests are happy.
  - imtringued 4y ago
    Pretty much. When money consolidates at the top, you effectively get a centrally planned economy. The problem though isn't fiscal policy which is a bandaid for an underlying problem. The rich don't spend their money, they endlessly reinvest it to grow their share of the economy until they have become such a large parasite that the host economy collapses, which is why politicians are constantly trying to grow the economy faster that the parasite can suck it dry.
- digisign 4y ago
  Inflation manufactured by the FED to prevent an economic collapse.