Re:Bank Run at Silicon Valley Bank
by stickfigure on Thursday March 09, 2023 @06:10PM
(#35088167)
What you've just created is a world in which the only people who can afford to buy a home are people with rich families they can borrow money from. Congratulations, you've concentrated wealth in even fewer hands.
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Low interest rate debt turned housing into a lending arms race to see how deep you can bury yourself.
There are other ways. Like buying one brick at a time. It's a real thing in places where access to lending is less common.
I've lived in homes built that way. They're always a little janky, but usually much higher quality overall because they're built for a family and not for quick turnaround.
I know guys who are literally growing the timber for their dream home while they live in a singlewide. Lifestyle inflation in the USA is caused in large part by access to this easy debt, and it routinely ruins people in the bottom half of the income distribution.