break even?
makes it sound like like they’re talking to investors not residents.i dread to think how their “anslysis” works.
cant bear to do any more than skim this article though.
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How did Zillow do this?
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When will the bubble burst?
I don’t think it will burst. It’ll just slowly deflate as new houses come onto the market and demand eases. The main problem (at least where I live) is that there just aren’t enough houses being built. I don’t think we’ll see a sharp price drop anytime soon because there are so many people waiting to buy.
The problem tends to be that houses are being built but they’re not the right houses. They’re all really expensive houses, there’s nothing for first time buyers.
So true. Where I am, a podunk town in the deep south, most of the homes being built are 4 bed, 1800sf+. The ‘starter’ homes with 3 beds, 1200sf are still like $185k which is ridiculous compared to what people make around here.
Even building condominiums would be an improvement. Personally, I hate condos (because I own one) but at least it gives people the chance to own something.
Why does it not crash?
Along with what the other comment said, all the people that are buying that aren’t corporations can actually afford the house they’re buying largely due to the WFH change so they all moved out of cities with their large salaries and moved to low cost of living places, took all the affordable housing and since there’s no economic collapse they will continue to be ok (thankfully I guess?) so there won’t be a housing crisis other than the unaffordability crisis which isn’t a crisis to capitalists it’s just a feature of their market based system.
The solution “the market” chose was neofeudalism… Can’t buy, only rent. “I take your income forever and continuously raise the rent until you can’t afford it and then the next schmuck moves in. Where you go, who cares? Not my problem.” Lovely society we have…
It never will. If it so much as dips, the ultra wealthy will buy up everything they can find, inflating it once again.
Regulations could stop it easily, but profits are apparently more important.
Too many companies with deep pockets buying everything up to rent and then never selling. Once a company buys it, it’s pretty much off the market forever unless that company goes bankrupt but then they either get a bailout or another company buys that one for cheap.
