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Your post I was responding to was complaining of financial pain in buying a home. Now you're saying it's a financial benefit. Either way, what I'm saying is tha

Your post I was responding to was complaining of financial pain in buying a home. Now you're saying it's a financial benefit. Either way, what I'm saying is that you have a choice. Also, it's worth pointing out that your 10 year sample happened to be one during which housing construction was at historically low rates, which lead to exceptional increases in housing prices. There are other 10 year spans in which your outcome would have been very different.

toomuchtodo 2y ago
There is currently a shortage of ~3-4 million housing units in the US. This shortage will continue into the future due to a shortage of people to build housing, the cost to build, and a population that remains steady due to immigration inflows. Buying in the US will remain a net positive financial decision well into the future based on these housing fundamentals.
- AlchemistCamp 2y ago
  Many have had similar confidence in the past, including during the early-mid 2000s, right before the crash.
  - toomuchtodo 2y ago
    A black swan event caused by unique financial engineering conditions that won’t occur again is not a compelling rebuttal.
    - AlchemistCamp 2y ago
      Before 2008, there was a bust in 1980. Most attribute that to rising interest rates at the time. Given that the prime rate now is just 40% of what it was in 1980, it's not like interest rates can't rise enough to impact the housing market at some point in the future.
lumost 2y ago
Original point was that a forced move carries a financial cost, as home prices rise - this financial cost rises relative to income. This dynamic creates a disincentive for individuals to move due to the cost relative to income. If individuals are disincentivized from working on the highest impact projects they can - you'd expect an impact on economic productivity. It's a large financial benefit to own a home, it's a massive cost to move for a job if that forces you to abandon home ownership in favor of renting. This cost would incentivize workers to work at jobs which don't make use of their skills or avoid jobs which could leave them in a career desert of a location.

toomuchtodo 2y ago

There is currently a shortage of ~3-4 million housing units in the US. This shortage will continue into the future due to a shortage of people to build housing, the cost to build, and a population that remains steady due to immigration inflows. Buying in the US will remain a net positive financial decision well into the future based on these housing fundamentals.

AlchemistCamp 2y ago
Many have had similar confidence in the past, including during the early-mid 2000s, right before the crash.
- toomuchtodo 2y ago
  A black swan event caused by unique financial engineering conditions that won’t occur again is not a compelling rebuttal.
  - AlchemistCamp 2y ago
    Before 2008, there was a bust in 1980. Most attribute that to rising interest rates at the time. Given that the prime rate now is just 40% of what it was in 1980, it's not like interest rates can't rise enough to impact the housing market at some point in the future.

lumost 2y ago

Original point was that a forced move carries a financial cost, as home prices rise - this financial cost rises relative to income. This dynamic creates a disincentive for individuals to move due to the cost relative to income. If individuals are disincentivized from working on the highest impact projects they can - you'd expect an impact on economic productivity. It's a large financial benefit to own a home, it's a massive cost to move for a job if that forces you to abandon home ownership in favor of renting. This cost would incentivize workers to work at jobs which don't make use of their skills or avoid jobs which could leave them in a career desert of a location.