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I am talking about national median housing prices. Ie. Outliers like SF or NY won't even be visible in these statistics. (also, I personally am speaking from a
by tossandthrow 2y ago
I am talking about national median housing prices. Ie. Outliers like SF or NY won't even be visible in these statistics.
(also, I personally am speaking from an EU perspective, where my expressed opinion is the same).
But tell me: are you arguing that we see a general willingness to spend a larger roprtion of disposable income on housing, and that this is a permanent trend (due to the dynamics you emphasize).
- xnx 2y agoSince housing has virtually no upper-limit on what you can spend, it can absorb any disposable income from other things getting cheaper (food, technology, etc.).
- tossandthrow 2y agoYes, so historically it has been a rule of thumb that this is a third of the disposable income. What a am considering is whether people are ready to move that to half? Two thirds? My own assumption is that people are willing to do this as long as they believe that the house will be a good investment. But houses can never be a long term good investment. It will always converge to inflation.