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No new jobs = no demand for property. We haven't added a new job to the economy in total jobs terms from 1999 until now. We've just replaced the lost jobs.
The demand is off. That is why there is a shortage of supply. Over supply gets falling prices, when demand justifies higher prices then supply will kick up.
There is clearly demand but builders aren't building. Look at metros across America. Metros like Nashville, Austin, Denver all have housing price indexes higher than pre-2008 and most metros are approaching that peak, but builders are taking a slow and steady approach to building.
I grew up in Naples, FL during the housing boom of the 2000s. Back then you saw new housing being built EVERYWHERE. I moved back to Naples a year and a half ago and prices for the time period are now back to early-mid 2000s level. I saw zero new sub-divisions being built and witnessed one, just one, apartment complex being constructed. The demand IS THERE. Because everyone my age (late 20s) is struggling to find affordable living situations. What I currently pay in rent with a roommate is more than what my relatives paid for a two-bedroom apartment in the late 90s. The retirees are struggling too but they have cheaper options still available in retirement communities.
Builders just aren't building and our politicians need to start addressing this. Some of you might get a cheap condominium complex plopped next to your house and that's just the way it is. We all need someplace to live.
Millions of illegals in country + insufficient housing supply = the rent is too high = renters cannot buy = rent slavery = new feudalism
>>>> You got it. I might add that many home buyers buy houses to make apartments and rent them through government assisted housing. More poor people doesn't make for a strong economy although the very richest will still benefit. Its only a matter of time until the government stops paying and then we'll have many people working low paying jobs just like we did over a hundred years ago. Which is what they want.
I have read that the drop in homeownership rate, along with increases in home prices, is a good thing. It means that a lot of the people who, prior to 2009, had no business buying a home, are now out, but for those who do qualify for a mortgage the average equity is up.
Another factor is this: when young people are living with their parents they are not counted as a separate household. When a Millennial moves out of Mom and Dad's basement and into an apartment, they are a new household and since they are renting, that reduces the home ownership rate.
There is clearly demand but builders aren't building. Look at metros across America. Metros like Nashville, Austin, Denver all have housing price indexes higher than pre-2008 and most metros are approaching that peak, but builders are taking a slow and steady approach to building.
I grew up in Naples, FL during the housing boom of the 2000s. Back then you saw new housing being built EVERYWHERE. I moved back to Naples a year and a half ago and prices for the time period are now back to early-mid 2000s level. I saw zero new sub-divisions being built and witnessed one, just one, apartment complex being constructed. The demand IS THERE. Because everyone my age (late 20s) is struggling to find affordable living situations. What I currently pay in rent with a roommate is more than what my relatives paid for a two-bedroom apartment in the late 90s. The retirees are struggling too but they have cheaper options still available in retirement communities.
Builders just aren't building and our politicians need to start addressing this. Some of you might get a cheap condominium complex plopped next to your house and that's just the way it is. We all need someplace to live.
Jobs = demand.
People need places to live. People = demand. We overbuilt houses. What happens after that is underbuilding houses. To not overbuild houses again is what is needed.
Too much debt is why prices are to high. Debt destruction lowers prices, and is very painful.
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