It's supply and demand apparently there is a shortage of housing in lots of countries around the world. If people stopped paying the crazy prices then they would come down.
@MrAverage1965 When you get into an economy the weirdest unexpected consequences happen. Covid cut back on construction and a lot of people learned to work from home. Supply disruptions taught companies that there was more profit in shortage than having to discount because you were overstocked. A lot of people liked working from home and dont want to commute any more. . This has a downturn on the need for office space rentals and this reduces the value and returns of commercial real estate and not only the offices, but the concessions within the buildings lose business. Central Business District support employment drops as sandwich hands , wait staff and Barristas lose their employment. Then we come to round two as all those effects sink into the economy. Have a look at the number of city based Gyms closing right now..Like I said. The weirdest consequences..😷
@whowasthatmaskedman Very true. Here in the UK we have town centre shopping centres being demolished and replaced with residential apartment blocks, trying to breath new life into the areas.
@MrAverage1965 And that is going to have a knock effect of its own. Possible outcomes are an increase in migratation to occupy those houses and shore up consumer demand ..OR.. a fall in real estate prices, effecting the residential real estate investment market. which includes the banks. That then flows into the taxation income from profits. Next, where are all these people going to work?? It just goes on...😷
The Biden administration on Friday requested more than $105 billion from Congress to support the security needs of Ukraine, Israel, Taiwan and the U.S. southern border. Now that the horse has left the barn, he wants to close the door to illegal immigration.
What's another $105 billion between friends anyway? It's not like our economy is having problems or anything.
@Livingwell I truly wish people would learn more about the government and how it works. Me included. Maybe we’d be more selective with who we put in all areas of government, not just the President!
@Handfull1 Exactly. The President doesn't set fiscal policy, budgets (congress), border policy( homeland), control world gas prices (OPEC), stocks, or even go to war. He can try to influence but that's it.
@Handfull1 of course you wouldn't. You like paying double triple prices for everything. Interest rates 4 times higher, trillions and trillions of more debt,cowing down to all these pussy ass countries and give pay outs. I'll take TRUMP OR REGAN any day over the spineless bunch we've had
That's because of the increases in the interest rate for the fed, which have been historically low since 2008.
That pricing adjustment is a correction caused not purely by inflation, but by the end of cheap and free credit. Which is a good thing in the long term. With interest at a reasonable place, people will be more careful with taking out debt. That's good. Because they have to be more careful about taking out debt, and because the cost of the debt is high, housing prices are going to need to start coming down in order for people to afford them. That is also good. Housing as a whole becomes less attractive to investers because the cost of debt limits their ROI. That is amazingly good. We need investers out of housing so that people can actually afford to live.
I know long term thinking and bigger pictures can be challenging for people. But instead of cheaper debt we can now do smart things to bring down housing costs by doing things like build more affordable homes and fewer luxury dwellings. We can make foreign investment in our properties unattractive. And we can treat houses like homes rather than portfolio assets.
@ViciDraco You are 100% correct and I might add that its the Wall st funds invested in mortgages taht will fight this tooth and nail,since these investor/owners are their milk and honey, turning and churning loans regularly, with fees and commissions every time. This is the minefield of the 2008 crash all over again. And Wall st will be looking for a bail out. again..😷
Over half of Americans are homeless or in unaffordable housing, paying more than half their income to live indoors. That's a success. You don't have a democracy problem at all because people are so poor.
