- 49d 16h 17m
You clearly think the economy ie the people are in some dire straights. They are not we are in the midst of an epic boom, people who lost everything? Yeah it's shitty and nowhere near enough people to matter a hill of beans. American families are better off than at any point in your life time with cash. You just aren't looking at the data and just going on feels.
So now you explain you don't think there is inflation coming so home construction costs will go down?
Stop having thoughts, just follow the data. Housing is a much slower moving beast than equities, it is driven by demographics. We have a big ass population bubble called millennials moving out of cities and buying houses. They are bigger than the baby boomers who drove the 80-90s boom. They aren't going to just stop in a few months. There is tremendous demand for affordable housing far more than we can meet. The well off will continue to fuck the working class via their purchasing power. It is going to be neigh impossible to meet housing demand in the near term. Lumber prices should mitigate some but this RE boom started before the pandemic (around 2016). Some moderation is likely but the trend is in place and that is up. I am hoping housing sees more technological disruption. It's what is desperately needed. We need innovation to help meet this demand and drive housing affordability the other direction like it has in so many other sectors.
I wasn’t trying to suggest there’s no inflation.
I think inflation is here/coming I just think lumber prices are so wildly out of proportion they will correct by 10x. Particularly framing materials and random parts.
My uncle is a builder and his electrician is having to buy meter housing units from Home Depot bc they’re literally not in stock w his supplier. It’s basically all gone the way of ammo.
To your point, all the feedback I’ve heard from realtors says most people are buying homes w cash. I guess I assumed it was anecdotal and only rich boomers were buying bc they’re the only ones that can.
But, you’re saying it’s a trend rather than a fad, which I couldn’t deny.
I guess it’s just hard to believe that buying a house sight unseen for $40k above asking is the new normal. And that dumps in areas that need to be gentrified are going for $150k above what is typical.