Considering how crazy expensive accommodations have become the last couple of years, concentrated in the hands of greedy corporations, landlords and how little politicians seem to care about this problem, do you think we will ever experience a real estate market crash that would bring those exorbitant prices back to Earth?
No.
I never wanted to be a homeowner personally, but earlier this year I noticed that four AirBNB’s had materialized just on my little block in America, so I bought a condo. I paid $40,000 more than it cost ten years ago, but it’s beautiful, I like it, and it gives me the ability to stay where I want to long-term, so here we are.
The Federal Government is not going to act on the forced scarcity of housing, so expect the issue to be handled similar to the way states handled COVID. Some states had good policies. Most had shitty policies, but overall, the outcomes were negative to some degree, and that’s almost certainly what will occur with housing over time.
To be honest, I never saw myself buying anything. But when rents were raised a whipping $500-600 in a single year in my area, I got concerned for the future. I bought a small condo that I could afford (still at a cost far above what it was worth pre-2020…around $40k like yours) because I was terrified at what would happen if rents continued to skyrocket at suck a rapid trend. Never in my life have I seen that happen before.
Idk if I made a good financial decision or not, but it seems both of us took a similar path). We’ll see what the future holds.