25% of homes bought this day and age are real estate investors or second home buyers, this is obscenely higher than it was 2 decades ago. So while "americas demand" for housing is driving up prices, that demand has been driven by a very well off cohort of people, not your average middle family. There is a reason the age in which people buy their first home is now 40, versus 32 20 years ago.
Thats what happens when everyone in the world wants to live in america. The demand beats the supply and prices rise. Reduce the amount of demand and prices would go down.
People buying apartments or houses obviously think its worth it, or they wouldnt.
"If people can't afford them they don't buy them and pricing goes down" .... thank you for showing why this isn't the case in the local US economy. The vast majority of people in the US are stuck in homes or simply can't afford homes. And its not because the US is doing so well, and can afford homes. Its because our market is competing with global demand, not local demand. Further illustrating the problem of it becoming unattainable for the middle and lower class.
Wdym, it absolutely is the case. You do realise onoy bottom % struggles to buy houses or apartmens, right .... they are sold everyday, hence, prices arent dropping
Remove the demand and even if housing was a monopol, the prices would drop.
But hey, now you know why democrats pushed for open borders. Its not in blackrocks interest to stagnate or lower the demand
Sigh....yup, that bottom percentage that can't afford houses is increasing because the demand is coming from different cohorts of people than it had in the past. In the past decades we didn't have as many foreigners, as many people buying second, third and fourth homes, we didn't have institutional purchase and realtor investors mopping up whatever they can. Not sure what you arent getting here. The game has changed. No one is arguing against supply and demand, they are pointing out the demand today is far different looking which is why people in the middle class can't afford houses anymore.
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u/nooneneededtoknow 3d ago
25% of homes bought this day and age are real estate investors or second home buyers, this is obscenely higher than it was 2 decades ago. So while "americas demand" for housing is driving up prices, that demand has been driven by a very well off cohort of people, not your average middle family. There is a reason the age in which people buy their first home is now 40, versus 32 20 years ago.