Housing prices

Comments

• theacharnian@lemmy.ca ⁨2⁩ ⁨days⁩ ago

  Gary Stevenson’s got a theory about asset inflation driven by inequality.

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• krisevol@lemmus.org ⁨2⁩ ⁨days⁩ ago

  A few things broke.

  1 inflation definition and actually inflation are two different things. Real inflation is m2 money supply.

  2 us debt and money devaluing makes assets raise in price.

  3 is permitting costs. The first to build a house has gone up a ton.

  4 supply. Permitting restrictions and requirements make building small houses not viable for most. Tiny homes today are pretty close to the price of a house 2 or 3 times the size for only 20-30% more money.

  5 low interest rates for too long. Low interest rates cause prices of assets to rise incredibly fast.

  Loan term requirements becoming relaxed. 30-45 yr loans are the norm now because consumers are willing to take on life long debt terms. In a limited supply situation you are competing with people willing to pay more with longer terms.

  6 speculation. This is mostly from the low interest rate environments. People buy assets to beat the interest rates. Companies buying houses for profit from flipping or renting also contribute.

  The only way we get adorable housing is 10% interest rates, abolishing the 30-45 yr loans, and remove permitting costs and restrictions.

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  • NikkiDimes@lemmy.world ⁨2⁩ ⁨days⁩ ago

    All I ever wanted was adorable housing…

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    • krisevol@lemmus.org ⁨2⁩ ⁨days⁩ ago

      Me too, me too 😢

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    • VitoRobles@lemmy.today ⁨2⁩ ⁨days⁩ ago

      I’ll settle for affordable housing but cutey patooty housing is a bonus!

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• LodeMike@lemmy.today ⁨2⁩ ⁨days⁩ ago

  Not enough housing supply.

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• Formfiller@lemmy.world ⁨2⁩ ⁨days⁩ ago

  So the thing is the post new deal social contract only existed because the wealthy were afraid we’d guillotine them. They aren’t afraid anymore and they’re building mass surveillance and AI infrastructure to protect themselves against us.

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• FiniteBanjo@feddit.online ⁨2⁩ ⁨days⁩ ago

  My guess is an increase in wealth concentration and foreign investiture leading to homes being used as monetary assets and driving their price up above what normal people can afford.

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• hash@slrpnk.net ⁨2⁩ ⁨days⁩ ago

  This is one of those places I understand wanting what my parents had, but I don’t think that’s actually what we need. We need homes to be cheaper, but I also believe homes being appreciating assets is not sustainabe. Moving past car dependence will require building at densities where homes don’t carry enough land to naturally appreciate.

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• arrow74@lemmy.zip ⁨2⁩ ⁨days⁩ ago

  Reagan happened

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• Tango@piefed.ca ⁨2⁩ ⁨days⁩ ago

  I assume it’s mainly that the amount of people went up more quickly than the amount of homes. Demand goes up while supply stays low, and the result is predictable.

  I also assume that this is driven by perverse incentive: pre-existing homeowners want their property to appreciate in value, and so they will oppose attempts to build in order to drive scarcity. They will be particularly incentivized to do this if they bought the property as a speculative investment instead of as a home for themselves.

  This type of rampant speculation is driven by the market being largely unregulated. Everywhere in the world but especially in the USA, people are forced to seek reliable high-yield investment in order to fund non-state pensions and afford a decent retirement. Governments desperately need to aid this in order for society to not collapse, and so they are held hostage by their own economies, forced to clear a path for pension funds to seek as much profit as possible.

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  • otacon239@lemmy.world ⁨2⁩ ⁨days⁩ ago

    I assume it’s mainly that the amount of people went up more quickly than the amount of homes.

    There is an average of 45.9 empty homes in the U.S. for each person experiencing homelessness.

    www.self.inc/info/empty-homes/ (original sources cited at the bottom)

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