Housing affordability is ultimately a function of how productive a society is. The UK, US and the rest of the western world have been running massive trade deficits for decades now. A house is hard to build and maintain. It takes real work and materials. Work that we are getting worse at doing, and materials that we are getting worse at making.
Any anons waiting for a nominal price crash to buy property are going to be waiting a few centuries. Unless you have a very valuable skill which will always put you in the top 10% earners of society I would get on the ladder while you still can.
You should at least try to buy a few acres near the coast then. Always good to be able to build a cabin to overwinter/retire in and let firewood grow. That's micro-productivity. Become part of the owning class while you still can user.
The yellow box on the right hand side is exactly what the rulers want to happen.
Matthew Phillips
It's because the US real estate market has become the world's retirement fund. This aspect matters more than whatever the value of the dollar is. China's market crashing and the money printers are just making it even faster.
Tyler Myers
Property doesn't act like a speculative investment. Housing is going up because we are losing the ability to produce it.
Elijah Robinson
It's the land value of property that is unaffordable, not that houses are too expensive to build. We can build houses much more efficiently than before. The main problem is that older people stay in their houses after their children move out, and society is aging.
Leo Rivera
Don't forget the literal millions of immigrants that get preferred treatment when it comes to housing.
Jeremiah Morgan
>The main problem is that older people stay in their houses after their children move out, You would deny them their own house? You choose to make it a problem. Shouldn't even be part of the equation on moral grounds. Main problem imo is the constant stream of immigration.
Andrew Nguyen
>petrodollar is crashing It's not the houses that are increasing in value. It's the money that is losing it's value.
Julian Price
>We can build houses much more efficiently than before. But the average worker can't be productive enough to afford them.
This is the image I was responding to in making this analysis. It's implying wages are somehow going to shoot up in relation to prices, or that prices are going to collapse while wages somehow stay the same. Neither of those will happen as our economies are becoming less and less real. House prices might crash by 20% but not before you've taken an effective paycut of more than that.
Also we literally are entering a new paradigm because the petrodollar is over.
Yes but the effect is the same. It will be harder to afford a house in 2025 than it is today.
Eli Taylor
>not before you've taken an effective paycut of more than that. *in the form of fuel, energy and food prices
Nathan Adams
>You would deny them their own house? You're getting emotional. It's not a question of taking houses away from people, it's just an inefficiency or friction in the market, that those who have less need for living space have a lot of it, and those who do need it have less. Ideally housing would be a liquid market where people could buy and sell fractions of houses without transaction costs, but of course this is physically impossible.
Connor Hughes
What is causing the bubble and what can cause housing prices to crash?
This isn’t 2008 anymore when every McDonalds worker making minimum wage we’re taking out 900K mortgages with NINJA adjustable rate loans. Everyone who currently owns a house can afford the mortgage payments and any new buyers have a high income. In Canada, a recent study by the gov found that the median net income (after taxes) of a homebuyer was over $100K.
These people have high skilled jobs and are insulated from economic downturns, which is why even COVID didn’t do anything. Housing prices aren’t in a bubble. It’s due to low supply and high demand.
Xavier Robinson
>Unless you have a very valuable skill which will always put you in the top 10% earners of society I would get on the ladder while you still can. And make sure not to get married - if you get divorced you might get kicked off the ladder by your ex-wife and then all your descendants are off the ladder too.
Landon Collins
Youre very wrong. Housing in Canada right now isn't sustainable. Most models/trends and project a reduction in pricing by 20 to 40 percent by 2024. Stop dooming u ignorant tard. The inflation of 2021 and 2022 had a purpose and now it will slowly whittle down.
Caleb Flores
The main problem is inventory, I have cash money in hand ready to buy but there is hardly anything except Cracker Jack starter homes or godly costly McMansions. In my city of 120k people there is a whopping 124 homes for sale on Zillow.
Landon Long
Low IQ post. Why would prices go down? What are the independent variables in that study?
Also inflation will go down, but that doesn’t mean prices will deflate. It just means prices will rise more slowly.
Ian Reyes
You are correct that inventory is a problem, but there are also contributing factors. Immigration is one.
Caleb Ortiz
>Average earnings Try median earnings you faggots.
Carson Gomez
It sounds like the peak oil user on a new vpn doomposting. Same style, same graphs and same autistic arguments.
Alexander Flores
It’s not doomposting. It’s quite simple. Just go buy a house before it’s too late. Prices won’t come down.
Your link says they expect no price change. That price drop is under their worst case scenario, and there’s no explanation how they derived their numbers.
Prices aren’t going to fall. You’re going to wait decades while prices 3-7X more. I bought my house for 400K 4 years ago and now it’s worth 850K.
I had friends and associates just like you calling me a moron for buying during the “top of the market” while they held cash expecting a crash. The crash never came. Prices more than doubled. I refined to 2.25% while they’re still waiting for the crash.
And yes, they’re miserable people.
Julian Hall
Can't read graphs? There are plenty in the article. It outlines things easily. I know you didn't read it. Enjoy ur inflated assets. You're not actually earning money. Remember that. Your money is stuck and the pride you feel is misplaced. You're not smarter than your friends u just have a higher risk tolerance. It won't pay off in your case. But I wish you the best of luck, user!
