“The fact that you don’t see inflation in housing is because housing is still coming down from its bubble. Housing is still vastly overpriced and vastly overstocked - and the Fed are still keeping house prices pumped up with taxpayer money.”
Correct. The age old adage is that a home should cost you double your gross income. The average gross income is about 40K. Ergo, the average house should be about 80K. There is a lot more house now for that price, but eventually it will fall to appropriate levels, or else there will be a LOT of empty houses (Or filled by foreigners, but less likely) and a lot of slums. Housing needs to fall by about another 50% to be in line with what people can afford. Just because we have had decades of Debt slavery, financed by the labor of foreigners, doesn’t mean we will continue to do so.
I expect to see multigenerational households rise significantly, which will further lower the price of housing. There is definitely inflation, but the housing prices people were paying were just plain stupid.
A lot of the houses will be snapped up by investors looking to rent out the houses.
The Fed also does not use “taxpayer money” and, in reality, pays the taxpayers tens of billions of dollars per year by turning over its net profits on operations. Other quasi-government agencies have aided the speculation in real estate with taxpayer money. The Fed has other weapons.
Only in periods of economic collapse such as we have had does it pay to speculate against the real estate market.
Multi-generation usage of houses also is proportional to the health of the economy. And we are not comparing a house in 1920 to one of today without understanding that the first would be considered tiny compared to today and containing probably twice as many people as one today. The avg. HH size has dropped precipitously.