Secondary shops flooded with unicorn sellers

Re:Secondary shops flooded with unicorn sellers by Domenic_S on Friday February 19, 2016 @06:23PM (#11137540)

Without numbers it's hard to tell, but it looks to me like the curve is even gentler than 99-03. It's almost always going to be going up and to the right until the population starts shrinking.

People are just stubborn and think that if they can't afford the type of house they want in the type of neighborhood they want in the city they want, then housing must be in a bubble and out of reach.

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Re:Secondary shops flooded with unicorn sellers by danjayh on Friday February 19, 2016 @06:31PM (#11137594)

Assuming continuous inflation, the absolute price of housing will always increase. However, affordability decreases as the ratio of housing price : income increases. There is a limit above which a vast swath of the population can't afford houses, and somewhere just beneath that limit lies another at which the price of housing collapses. That's assuming that the effect of speculation never becomes large enough to outweigh a collapse of real demand.

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