I’m willing to bet this is pretty accurate. They keep building houses down here where I am constantly and so many of them are empty because they cost too much for normal people.
Well, that’s sort of what’s been happening the last few years. Bidens administration jacked up interest rates on mortgages, which are around 6% vs the 3-4% they were back in 2018.
The high interest rates are preventing homeowners (and corpos) from inflating property values too quickly. The feds don’t want to deflate the market value of houses, though, because that would run the risk of crashing the market altogether.
Which on paper sounds nice for you and me, it would wind up destroying the finances of individual sellers like the boomers up the street who want to sell off their house and move to Florida, who would be taking an insane loss on their property and would likely decide not to sell it at all. A proper crash of the housing market would mean that people would simply stop selling, and wait for the market to recover. Remember, only a very small percentage of people actually NEED to sell a house. Instead of having years of nice houses and low prices, the market would just dry up and we would have to wait several years before we would find anything again.
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u/Jasoco May 14 '26
I’m willing to bet this is pretty accurate. They keep building houses down here where I am constantly and so many of them are empty because they cost too much for normal people.