Re:Ask HN: Do you think this is the start of the new financi...
by runnerup on Monday March 20, 2023 @10:03PM
(#35241651)
> I don't understand how residential housing isn't a big bubble.
It’s not inherently a bubble because it’s driven by demand far outstripping supply. It may prove to be bubble-like if:
A) Some significant % of homeowners see salaries reduced enough they can’t keep up on payments.
B) We suddenly start building massive amounts of additional housing units so a larger % of the population can own/rent a home and the price drops to match the lowest income that still outcompetes the rest of the non-homeowners / non-renters / uncomfortably sharing renters.
It’s not inherently a bubble because it’s driven by demand far outstripping supply. It may prove to be bubble-like if:
A) Some significant % of homeowners see salaries reduced enough they can’t keep up on payments.
B) We suddenly start building massive amounts of additional housing units so a larger % of the population can own/rent a home and the price drops to match the lowest income that still outcompetes the rest of the non-homeowners / non-renters / uncomfortably sharing renters.