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Also the biggest tickets to middle class wealth in the last few decades have been pensions and home equity. Home equity being the ability for a young couple to
by hardcandy 12y ago
Also the biggest tickets to middle class wealth in the last few decades have been pensions and home equity. Home equity being the ability for a young couple to borrow money at a low rate on a stable asset that appreciates at a higher rate (over a 30 year time horizon). Pensions have been removed. If housing price growth stops as well, that's a significant double blow.
- YokoZar 12y agoHousing and rental costs have been a substantial drain on what would otherwise be the new middle class. For the most part they don't (yet) own homes, lower prices can only help them. Consider how much doesn't get invested by the poor and middle class into education, paying down debts, or retirement savings accounts. It feels rather absurd to suggest that they would somehow benefit from continually raising the price of something they need to buy.
- collyw 12y agoExactly. Its great for those who own, paid for those who don't yet.