Quote:
Originally Posted by Jibartik
[You must be logged in to view images. Log in or Register.]
I am having a hard time understanding the housing market.
I often hear this one response when someone points out that millennials can't afford to buy one:
But.. Am I the only one that is like, wait we're at maximum occupancy here? There are more people than homes can be built? [You must be logged in to view images. Log in or Register.]
Like...
Are we at a lack of supply because we could have many more houses than we have, but we just wont build them?
Or are we at a lack of supply because we're reaching maximum occupancy and no mater how you shake it, we're screwed?
I just seem to think that if we have more demand than we have supply of homes, that it's not a solvable solution.
Do we think that new towns are going to open up in Nebraska and that will solve the housing issue?
I just dont see how supply of homes being a problem can just be fixed. [You must be logged in to view images. Log in or Register.] |
The dirty dollars that you use to purchases houses have been devaluing at a rate of about 7% per year on average for the last several decades. As a scarce asset, housing tends to hold its value better than fake notes printed by pernicious entities. This means that a house selling for $200k ten years ago will command a price of roughly twice that today even without an increase in demand precipitated by investors looking for a place to park the rotting dollars dumped on the market since March of last year.