In the 2006-2008 crash, the house I rented in Renton, Wa. went from 320k to 550k, down to 285k on Zillow. A year ago it was at 1.2 million.
I haven’t checked for a while, but my perspective way back then, was that it was only a precursor to the “big” crash, from which we would not recover and remain anything more than a shadow of the nation we were in the 20th century.
And here we are, and it’s just beginning. Prepare accordingly.
Some areas they are still building new homes. I dont get it. All real estate is local.
If commercial real estate never recovers because people continue to work from home, then I can see it being converted into residential which would increase the supply without necessarily increasing the demand.
If the population as a whole, or just the population of those capable of buying a home, flattens or begins to decline permanently then that would also signal long term declines in real estate values.
If the idea of a single family stand alone home is no longer considered a necessary part of the "American Dream" then single family homes will go the way of the buggy whip.
If Baby Boomers decide to scale down as they retire, especially if they fear increasing heating and AC bills in the future, then at least the larger homes will no longer go up in value but will be seen as a liability.
I believe that the reason why both Dems and Pubbies look the other way on massive legal and illegal immigration is that they believe that an ever-increasing US population means that all of the corporations that fund their elections will be guaranteed increasing profits going forward. The thing that corporations fear the most is permanent declining demand which would be the case if immigration stopped since our low birth rate is not replenishing the supply of consumers.
With inflation steadily driving up the cost of the essentials of daily living (food, shelter, transportation, energy, healthcare) there’s less and less disposable income left over for discretionary items. THAT will soon become a very serious problem for what is a consumer driven economy. And putting such purchases on the plastic is driving up debt at higher interest rates.
I don’t see how we avoid a serious economic contraction.