/biz/ - Business & Finance

>>57632952
- Boomer policy managers circa 1950 have a genius idea: popularizing the mortgage. Everyone gets to live in a house without immediately buying it. Great! More dignity and affluence for everyone!
- This is no problem financially. As long as people work, they can afford a house. Wages are rising up through the 1960s, so the trend should continue.
- Uh oh. It's the 1970s, and wages aren't rising with productivity anymore... well whatever, as long as productivity's rising the wealth will be spread around anyway, right?
- Oops, the 1980s passed and the wealth didn't spread around. It turns out that wealth is accumulating at the top! Well that's no big deal, global economic growth in the 1980s was insane so people's net worths are still increasing. And besides, now that folks are paying off their 30-year-mortgages from the 50s, they can start selling their houses for big money! BIG money!
- It's the year 2000. Wow, this housing market is getting crazy! People are making so much money selling their houses - they're basically an investment vehicle. All these residential properties are a limited resource, too - after all, there's only so much land around key global cities available. Houses clearly aren't just for living, they're for accumulating value towards retirement
- Thanks to a beneficent government, even the poor are able to take out mortgages now. Finally, everyone can own their own home. Often they can't afford them, and banking policies are quite loose, but so what? It's not like housing can just crash all at once.

>>55955106
Prices will hyperinflate to the moon going forward. They will never fall back several decades you hopeless doomer.

>>54729760
>>54729790
> 120 YEARS
> ZERO CRASHES
rent cucks hoping for a 20% "crash" followed by 120% recovery

>>54683545
retards who buy houses as nest eggs who then fight the development of new housing tooth and nail to artificially inflate the value of their property. You basically have a class of people (homeowners) who's self interest runs contrary to everyone else's. Since homeowners are wealthier on average than non-homeowners, they usually win in the end at the expense of everyone else. This is how you wind up with the abomination of pic related

>>53934366
>>53936824
>>53938409
>>53938432
> 100-year history of residential real estate prices in the U.S. The graph is based on Robert Shiller's historical housing index which adjusts for the significant increase in the size and quality of homes over the past 100 years
imagine waiting for house prices to collapse

>it's GoNNa CrAsH

>>49810683
b.. but my savings.. but muh housing prices!