this post was submitted on 21 Aug 2023
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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?

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[–] [email protected] 0 points 1 year ago (1 children)

I mean we are seeing the results right now of decades of exponential growth. Take a house that costs $100,000 and increase prices from 3-10% per year every year for ten twenty forty years whatever and boom, same house now costs a million bucks. It's not surprising to me at all. Idk how to fix it but it's not surprising.

[–] [email protected] 2 points 1 year ago (1 children)

Decades? 2008 was only 15 years ago...

[–] [email protected] 1 points 1 year ago

? Housing is an asset class like any other and grows over time. What has 2008 got to do with anything? A quick google search shows historic growth rates around 5% a year.

YoY growth data is updated quarterly, available from Mar 1992 to Dec 2022, with an average growth rate of 5.4%

That's a double time of about 12-13 years so roughly 3 doubling since 1992. That's an 8x multiplier so yeah, that's how a $100k house turns into an $800k house without a housing bubble to inflate prices even more. Just normal market forces.

That what were you saying about 2008 and why did you downvote me for it? Lol