4 ms·

"housing prices are going down" is bad news for voting demographics.

• bluGill 2y ago
  It isn't bad news - but it feels like it. The forget that they have a place to live during that time and so most of their house payment would go to rent anyway. They also forget that in 30 years they get a place to live rent free (well property taxes - and of course this breaks if you take cash out). House prices generally don't go down so much as stagnate compared to inflation.
  • bombcar 2y ago
    House prices have dropped in nominal dollars a number of times, specially the five years from 2008-2013. Of course, that's on a national average; localities can deviate. That annoys people and makes houses go underwater; if you instead hold house prices mostly steady whilst inflation goes up, most everyone is happy. People who bought think they're financial geniuses for locking in a low rate, and non-owners see their affordability slowly improve. The problem is it's slowly; even 5% inflation would take a few years to be really noticeable.
  • rcpt 2y ago
    It's interpreted as bad news, thus there is zero political will to pursue policies that reduce housing prices.