Almost a year ago, I wrote a post about how financialism was the main overarching reason behind continuous increase in housing prices in western countries over past two decades- but especially in the Anglosphere. I thought it would be a good idea to ask my readers about their own theories on the reasons behind this still ongoing price increase. We know that current housing process in many parts of this country have no relationship to median income in those areas, and most people have finally stopped pretending that even a vague or tenuous correlation between the two exists.
I am curious to hear rumors about who is still purchasing homes at these very highly inflated prices in your neighborhoods. While there will always be some people with rich parents, high paying jobs or another sources of money- it is clear that the overall growth of population- but specifically the part which needs a house (or condo) and can still afford to purchase them has either stagnated or declined. And let us clear about something else.. even small and mediocre condos are undergoing price increases as same rate as detached suburban houses. While there have been many housing bubbles before, the previously most infamous one being in mid 2000s- this one feels different.
In case some of you are too young to remember, the housing bubble of mid-2000s was driven by rampant speculation, very loose lending standards and bundling of bad debt into tradeable securities. As things stand right now, we don’t seem to have the same loose lending standards of that era which implies that this money is coming from savings, equities or corporate money. There is also the issue of overseas buyers from Asia, but their real impact on prices is unclear. I have heard rumors of Chinese buyers snapping up houses in CA, rich Indians snapping up houses in NY and NJ, expats from the Gulf raising house prices in the Canadian province of Ontario etc.
So what rumors are you currently hearing and how plausible do you think they are?
What do you think? Comments?
There are much simpler answers such as remote workers from hcol areas buying housing stock, boomers looking too downgrade competing with their children looking for starter homes. There is one “easy” answer and that is converting commercial re into apartments and condos. Ironically the billionaire class seems to despise wfh.
So, have you tried a ladyboy yet?
😘🙈🤫💊👑