Depressed earnings in all but a tiny sector, and incredibly inflated house prices.
Perpetual growth is unsustainable in this manner, but is expected by investors.
I hope the market corrects. Not for my sake (I live in Sweden and have no US desires) but for those who hope to have a life and family near their ancestral home.
I am not preaching to the choir of HN, people on this site generally have it a lot better than the people who also live in the places that are huge tech hubs.
Also if you're talking about the Bay Area, much of the real estate pricing there is driven by the anti-development tendencies of the owners of ancestral homes, either lining their own pockets or pushing some misguided political wheelbarrow (especially in SF). In that sense it's largely self inflicted. In other places even uneven economic growth tends to create bigger cities as the wealth spreads through the economy via construction and services and the like. It's when you try to fight the market that you get unintended consequences.
We’d better get around to ceding Manhattan back to the Lenape, too.
I come from a city in England called Coventry. Family ties are what keep most of the population in place- perhaps “familial” is a better word.
The idea of not being able to live close to family is distressing to many of my fellow city dwellers.
You can argue the semantics of how valuable such a thing is. You can even argue that the entire family unit should probably move somewhere cheaper, or that commuting to see your mum isn’t all that bad. But honestly; it would take a lot for me to revisit the idea that I am not able to live amongst my family. Even if I personally did not choose to.
Local population can be priced out if external buyers (ie, foreign cash) can pick up the slack / drive up demand.
Foreign investment is likely why case-shiller is so high since mid-2000s.
There aren't two different housing markets.
They get their mail delivered there while renting it out to help bolster their residency claims.
So they are getting a nice tax shelter while pricing legit home buyers out of the market.
Nobody wants to actually do anything about it, so we pass laws that are easy to work around. Like a foreign buyers tax that is easily circumvented by using a shell corporation.
Agree that incomes put an upper limit on housing prices...they can’t go up forever at the same rate as the past 5 years.