/biz/ - Business & Finance

>>55847188
You would have to have a catastrophic event to reduce asset prices where people no longer believed in the future for an extended period of time.
Houses went from 2-3x median fulltime wage to 10x median wage and with land getting more and more competitive you can basically expect prices to go up as much as people can borrow.
Housing has gone from the primary purpose of being a home to the primary purpose of being an investment and thus it has kept up roughly with other asset classes.

Most rich people are isolated from the problems that poor people face. Considering the rich or the asset rich boomers are the ones owning this stuff there isn't really much panic and everyone knows that they could survive a market crash. The exception are those over leveraged but that's still a minority of people. I'm amazed by how many poor people can survive on credit and continually bad financial decisions but these people have been doing it for decades and it's far beyond my ability to understand what the limit actually is.
Another thing to note is that we are actually getting getting paid more per hour when you consider inflation and ignore assets. So the economy of buying useless shit you don't need is going to continue for a lot longer, people will continue to survive as they pay more rent. You then have NIMBY laws that make building more difficult.

I just don't see a proper housing reset happening for the next couple of decades. If asset prices get a correction then it's undoubtable going to occur around the time i hit FIRE. There are probably 1000 different major factors that determine housing prices. The best you can hope for is that there is a major flight for safety that ends up being a nothingburger (or more likely government intervention saves it's ass) and get in while people are scared.