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Both rents and house prices at or near new extremes

By Patrick follow Patrick   2018 May 6, 7:34pm 1,212 views   2 comments   watch   nsfw   quote   share

as a multiple of median household income, new home prices are at an extreme beyond even the peak of the housing bubble, while existing home prices are about 5% under theirs
but unlike then, when apartment vacancies were high and rents cheap, now rents are also at an extreme as compared with median household income
even with their recent increase, interest rates are still lower now than during the housing bubble, so the median monthly mortgage payment adjusted for median household income is even still about 10% less than it was at the peak of the housing bubble
if the trends of rising prices and interest rates continue, at some point they will overcome the demographic tailwind of the large Millennial generation having reached typical home-buying age. At that point there may be another deflationary bust
1   APOCALYPSEFUCKisShostakovitch   ignore (52)   2018 May 6, 10:09pm     ↓ dislike (0)   quote   flag      

If anyone can afford to live indoors, there's way too much value being left on the table.

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