3 ms·

Housing costs haven't dropped enough IMO to declare a win. I think its become clear that its a government problem, because if it was just a market problem, sup

• SkyPuncher 3y ago
  Why would the market have leveled out by now? It takes years to build any substantial housing.
• ethanbond 3y ago
  Why would it have leveled out? Just article of faith about The Market? Go talk to a builder. Land is ridiculously expensive due to speculation and labor is impossible to find due to it being a generally shitty job.
• runako 3y ago
  > Housing costs haven't dropped enough IMO to declare a win. This is a fundamental misunderstanding about inflation. If inflation goes to 0%, housing costs will stay exactly where they are now. You are looking for a deflation in housing costs, where inflation is < 0%. We had that in 2008 and it caused...collateral damage. The only real way to lower housing prices is to build a lot more housing. So yes, it's a government problem in that we don't let private actors build housing to meet the market's demand.
• sgerenser 3y ago
  It’s a supply and demand problem, but it’ll take years to play out. Too many people are locked into 30-year mortgages with 26-28 years left at 2-3% interest. They’ll basically never sell (barring a major issue like having to move for a job after layoff or a divorce). So the supply of housing is much lower than normal all across the country. In some areas new construction can pick up some of that slack, but new construction is just getting into swing after a huge drop early in the pandemic.