Just a dumb headline. First, household formation has accelerated dramatically over the last 5 years (see article below). This trend will likely continue, and/o

Just a dumb headline. First, household formation has accelerated dramatically over the last 5 years (see article below). This trend will likely continue, and/or accelerate for many more years. Many of the major homebuilders have seen this coming (e.g. DR Horton). Second, the lost value of office buildings did not merely dissipate - it just follows where people are spending time. Data from Kastle Systems suggests foot traffic back to office is roughly half of what it was pre-covid (40% to 50%). Those hours people are not in an office, they are in homes. If you have a bunch of adults spending ~20 additional hours per week in the home, they will value their homes more. When I was doing appraisal in the aftermath of 08, the buyers driving the speculation looked nothing like the buyers waiting in line today. https://www.jchs.harvard.edu/blog/surge-household-growth-and-what-it-suggests-about-future-housing-demand#:~:text=The%20number%20of%20households%20headed,260%2C000%20additional%20households%20per%20year https://www.jchs.harvard.edu/blog/surge-household-growth-and....