4 ms·
I don't see how they're going to go down that low. To do that, you need to have oversupply, or you need to be able to build a house for that price (building pri
by brink 4y ago
I don't see how they're going to go down that low. To do that, you need to have oversupply, or you need to be able to build a house for that price (building prices are up and will likely stay up due to prices of materials, living cost, and energy).
Employers are having trouble finding labor, the government has its foot on the neck of the non-green energy sector, the world is not producing like it used to when prices fell in the past.
- trashtester 4y agoOne thing about housing, is that if more people live in each unit, demand can go down quite a bit. This isn't happening during a 2 year bust, but if inflation becomes endemic, people may be forced to. Some unhappy couples may continue to live together, children don't leave their parents' homes, students that shared an apartment while studying continue to do so after they start working, etc. Also, more people who own houses may decide to rent out half. The price at the margin will never exceed what the marginal buyer is able to pay, regardless of supply. What you get in a case like thiswhere even parts of the middle class may be essentially homeless, is widespread social unrest. At that point, expect regulators and governments to take measures to make sure the supply of housing becomes big and cheap enough for at least the lower middle class to be able to afford a place to live (even if they have to rent). Unrest is more damaging to them than some unhappy homeowner lobbyists. And by cutting the red tape, it's possible to make housing MUCH cheaper than it is today (at least per housing unit, if not by area).