First of all - single home builders got CRUSHED in the GFC, and I “think” have mostly not come back. I still recall huge, empty neighborhoods outside of Sacramento while in college at UC Davis, during 2009. Eerie. Like with dustballs blowing in the wind.
Second of all - since breaking the gold standard in ‘71, wages and asset prices have totally decoupled from one another. It used to take 2 years of savings to buy a home. Today it’s like 8 - 10 years.
Couple trends here that are worth highlighting.
First of all - single home builders got CRUSHED in the GFC, and I “think” have mostly not come back. I still recall huge, empty neighborhoods outside of Sacramento while in college at UC Davis, during 2009. Eerie. Like with dustballs blowing in the wind.
Second of all - since breaking the gold standard in ‘71, wages and asset prices have totally decoupled from one another. It used to take 2 years of savings to buy a home. Today it’s like 8 - 10 years.
That is a recipe for disaster, IMHO.