At this point it's becoming crazy, people will be priced out completely.
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@OP Have you ever lived anywhere besides TX or Dixieland? Try house-hunting in Denver, Seattle, Boston, or New York then get back to me.
@pzz He was a self-involved BS artist who masqueraded as an economist. Famous for his market fundamentalism and his massive hard-on for privatization. Think of him as John Stossel with a brain.
Lookout below, when the new Ponzi scheme in housing eventually collapses.
History ALWAYS repeats itself and NO this time it ain't no different.
The last person holding the bag when the $hiite hits the fan will end up both stinky and broke!
Who is Melton Freeman?
In the last 14 years, Milton Friedman predicted the last 17 US recessions. He has an impressive record of chicken littling.
As someone else who is about to head to Texas, I'll tell you. It's pretty simple, really.
Texas is the only place where you can get Texas Roadhouse, Raising Cane's, In-N-Out AND Whataburger without having to give up one or more to 'settle' elsewhere.
So it's just a supply and demand thing, really. Housing goes up as we all flock there.
Your are right, it’s nuts out there. Our 3000 sq ft home in the The Woodlands is up 25% in the last year, 4% in the last 30 days alone. I thought the increase in interest rates would drive home prices down.
Our neighborhood, off North Milbend, looks like a construction zone with all the home tear downs and rebuilds going on around us, especially around the golf course. It’s nuts
Housing costs nationally are also being driven by the fact that units are being taken off of the conventional person-to-person real estate market schema. Corporations (funds) swooping in to buy and will not sell but only rent making home buying for people a thing of the past. That’s what’s behind this national bubble. Decrease supply and it drives demand with less units available to the market. Look into two of the largest global funds and see their strategy.
Cantillon Effect as a result of money printing by the Federal Reserve. Quantitative Easing from the 2008 GFC caused imbalances with money propping up the tech sector. Homelessness and increase in asset prices are both sides of the same coin depending on where you are in the economic ladder. Inflation moves through the economy and cities through various mechanisms. Then we had trillions printed again the past few years. Lots of financial engineering and jawboning to reinforce dollar hegemony. Inflation is a tool. Now they're pivoting to offshore asset price deflation (US treasuries) through jawboning driving up yields/interest rates. "Inflation is everywhere a monetary phenomenon." ~ Milton Friedman