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by light_hue_1
1102 days ago
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The idea that the cost of housing is relative to the number of people per sq mile is absurd and easy to falsify. https://www.russellsage.org/sites/default/files/inflation-ad... Inflation adjusted housing prices were basically steady from 1950 to 2000. Yet the US population went from 150 million to 300 million. It is surprising that for most of the 20th century housing was very affordable and then something changed in the late 20th century that culminated in two housing disasters in the 21st (the first is the housing crash and now a housing market that basically excludes all but the rich). |
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When rates fall under 4%, house prices will naturally be higher in desirable areas because a lot of buyers are buying on monthly payment, not headline purchase price. Cheaper mortgages make for more expensive houses.