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I wonder if housing prices is a significant cause of the inflation we are seeing. Potentially, one important item that permeates throughout the economy can dri

I wonder if housing prices is a significant cause of the inflation we are seeing. Potentially, one important item that permeates throughout the economy can drive inflation up for all things. The one typical example is oil or energy costs. But it could also be housing. The owners and managers of businesses ultimately are directly effected by the cost of housing. The increase in the cost of housing, may lead to them asking for more of the revenue be converted to profit/compensation for them, hence leading to increases of the prices of the goods/services these companies sell.

ascotan 4y ago
No ,when money is cheap people buy assets. Doesn't really matter what it is as long as it goes up in value. Bitcoin, Homes, NFT, who cares. This isn't quite the same thing as inflation. Inflation is the cost of milk and eggs. That also has gone up, in part because the Fed is dumping money into the economy during the pandemic as part of quantitative easing. But the home prices are an effect of cheap money. Now cheap money is gone, people have to rethink were to put money. Homes that are expensive to leverage and don't go up in value aren't a great place to put money anymore.