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.
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…
There’s near limitless demand and deliberately limited supply. Any dips will come from lack of affordability on lending as interest rates rise, but you’re talking hyperinflation for an actual crash.
So the house prices might drop by 20%, but you’ll be able to borrow 20% less. So if you’re fucked before any price drops, you’re still fucked afterwards.
Why does it not crash?
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.
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.
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…
Why would it crash?
There’s near limitless demand and deliberately limited supply. Any dips will come from lack of affordability on lending as interest rates rise, but you’re talking hyperinflation for an actual crash.
So the house prices might drop by 20%, but you’ll be able to borrow 20% less. So if you’re fucked before any price drops, you’re still fucked afterwards.