Housing prices and rents are soaring up

Discussion in 'Economics & Trade' started by kazenatsu, Jun 28, 2021.

  1. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    If you look at a graph, prices are higher now than they were before the start of the pandemic.
    Significantly higher, as in obviously not just due to the normal rate of routine inflation.

    Median nationwide home price in November 2019 was 327,100. As of March 2021, it had risen to 347,500. That is a 6.2% increase.
    And all that time we might have even expected home prices to be a little lower than they otherwise would be due to the effect of the shutdown and pandemic.

    As of June 2021 it has gone up to 385,000. So now a 10.8% overall increase since right before the pandemic. That's a pretty big increase over only one and a half years.
     
    Last edited: Jul 5, 2021
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  2. Zorro

    Zorro Well-Known Member

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    Bidenflation is real, and Democrats will make it worse.

    “Despite their zero-margin control of the Senate, Democrats are governing as though voters had given them a massive majority that justified dispensing with negotiation and bipartisanship. In an inflationary economy, they want to borrow and spend even more money for ideological goals that are irrelevant at best and damaging at worst to the vigorous economic recovery that Biden inherited upon taking office.”

    Housing and rents are completely out of control.

    Trump had masterfully reflated the economy and there was no longer a need pandemic spending, it was time to go back to work, but, Biden and the Democrats pursued exactly the wrong policies, lighting the inflation fuse.

    Biden and the elected Democrats are destroying the value of the money in your pocket.
     
    Last edited: Jul 16, 2021
  3. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Any excuse to spend money on pet political causes.
     
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  4. Zorro

    Zorro Well-Known Member

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    They spend our $Billions in order to reap $Millions in personal kickbacks. These folks are using their offices to run criminal enterprises, and our prosecutors are doing nothing about that, instead, they launch political investigations against anyone who threatens the gravy train.

    When DeSantis gets in there, he needs to fire all the US Attorneys and replace them with folks actually interested in securing the rights of the people and he needs to take off the top layer of the FBI, DOJ and the crooked Intelligence Agencies. Given that No One Person resigned or whistle blew through all the illegal spying and political witch hunts, he may even need to go deeper.
     
    Last edited: Jul 16, 2021
  5. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    "Billions"? More like Trillions. Or at least hundreds of billions.

    Biden administration planning to spend $3 trillion more

    A trillion has has 12 zeros.
    If you had one million suitcases each full of one million dollars, you'd have a trillion.
     
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  6. GrayMan

    GrayMan Well-Known Member

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    That makes sense. Even as our economy is stripped of all functionality and it collapses, they will maintain their status. Everything will be in the form of renting from our greaters as we scrounge for food as serfs. This will take the form of all items and services as even the car in your driveway will be accessible via a subscription to Microsoft car rental services.
    By owning the very means you need to live and depriving you of all ownership of property, they will own you.
     
    Last edited: Jul 17, 2021
  7. Moonglow

    Moonglow Well-Known Member

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    Inflation is receding in the commodities market.
     
  8. Moonglow

    Moonglow Well-Known Member

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    House prices were increasing during Trump also, you always leave out the trend. Just like terlit paper skyrocketed in price during 2020.
     
  9. Moonglow

    Moonglow Well-Known Member

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    Does capitalism not appeal to you?
     
  10. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Inflation was also happening during the Trump Administration.

    We can discuss that further in another separate discussion thread if you want, why that was and whose fault that was.
     
    Last edited: Jul 17, 2021
  11. Moonglow

    Moonglow Well-Known Member

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    It's always happening.
     
  12. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    It's possible to support "capitalism" but recognize it needs just a few little controls on certain things.
    You seem to be trying to make this a total "all or nothing".

    Controls on movement of people and products between different countries seems entirely reasonable.

    Besides, the Left would put a whole lot more "controls" on that capitalism than anyone on the Right, as we all doubtless know...
     
    Last edited: Jul 17, 2021
  13. GrayMan

    GrayMan Well-Known Member

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    Yes but not monopolistic capitalism. There needs to be limitations to keep power decentralized.
     
  14. Moonglow

    Moonglow Well-Known Member

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    The corporations own our govt.
     
  15. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Do you think letting corporations move their factories to China is helping that?
     
    Last edited: Jul 17, 2021
  16. GrayMan

    GrayMan Well-Known Member

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    Yeah... Am I supposed to disagree with you on something?
     
  17. Moonglow

    Moonglow Well-Known Member

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    Yes, my choice of deodorant
     
  18. Moonglow

    Moonglow Well-Known Member

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    The problem is the multi-national corporations has made the process of open borders and control of production and distribution unavailable to one govt. control.
     
  19. GrayMan

    GrayMan Well-Known Member

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    Government can control it if the people would stand together on this instead of letting corporate controlled news agencies create and push proprogana to tear down any leader and any movement that tries to change it.
     
  20. Chrizton

    Chrizton Well-Known Member

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    I suspect the Evergrande insolvency in China is going to have a nasty tail for US markets. They are are a housing giant there. People will start to think US housing has peaked too.
     
  21. Mircea

    Mircea Well-Known Member

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    Um, there are more than 120,000 housing markets in the US.

    There are 39,000+ municipalities.

    There are 335 US cities with populations of more than 100,000 -- you know, a "big city."

    Let us do the 5th Grade Math so we understand:

    335 / 120,000 * 100 = 0.279%

    The story so far....


    You and others on this thread are in a total uproar because 0.279% of the housing markets in the US are experiencing rising prices and you got suckered into click-bait by Media Pundits hellbent on getting advertising revenue.

    No, but it could be you don't understand ECON 101.

    Do let us know when you can prepare a proper Demand Schedule and Supply Schedule, and then graph them properly so that you understand the meaning of Price Equilibrium

    Yes, it's true. Price is a function of Supply & Demand.

    Did not everyone rag on Millennials for living in their mom's basement?

    Guess what? STUPID-19 drove Millennials out of mom's basement. They've gone a home-buying spree.

    Guess what else? Mortgage rates are at historic lows (still.)

    Putting it all together.....historically low interest rates have enticed both Millennials and renters to go on a home buying spree.

    Higher Demand + Flat Supply = Spiking Prices.

    Get it?

    It's not Quantum String Theory, but it is Economics.

    Great, another non-starter in panic mode.

    Do you never leave your home?

    Are you not aware that many of the 120,000+ housing markets in the US are completely saturated?

    Do you understand that "saturated" means every single stinking square millimeter of land in those housing markets is occupied by a dwelling, grocery, retail, hospitality, government, medical, office, or industrial structure?

    Did it ever occur to you that it is not feasible to build new dwelling places in markets that are saturated?

    Did it not occur to you that the only way to increase the Supply of Housing in a saturated market is to displace families and destroy their dwellings in order to cram more homes onto smaller lots or to build high-rise multi-family dwellings?

    Well, now you have something new to think about.
     
  22. Mircea

    Mircea Well-Known Member

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    That is 100% your fault. Own it.

    When you all grow up, man up and wise up, you can amend your Constitution:

    Proposed 28th Amendment to the U.S. Constitution

    Section 1


    No person or entity shall contribute money, or goods, services, tangible property or intangible property in lieu of money, to a political candidate, or to the campaign of a ballot initiative, who is not a natural born or naturalized United States citizen, and who is not legally domiciled and eligible to vote within the geographical area that an elected official represents, or in which a ballot initiative may be operative.

    Section 2

    Political parties shall not transfer or distribute campaign funds or monies raised, donated, or accumulated within a State to another State or to the several States.

    Section 3

    Any natural person who knowingly or willfully commits a violation of this Amendment shall be imprisoned for not less than 5 years and fined not less than 300 percent of the amount of money, or goods, services, tangible property, or intangible property, contributed to the political candidate or the political campaign of a ballot initiative.

    Any non-natural person or entity who knowingly or willfully commits a violation of this Amendment shall be placed in receivership for a term of not less than 7 years, and not more than 10 years, and fined not less than 500 percent of the amount of money, or goods, services, tangible property, or intangible property, contributed to the political candidate or the political campaign of a ballot initiative. The United States Bankruptcy Court having jurisdiction over the non-natural person or entity shall appoint a receiver to act as trustee.

    Section 4

    The Congress and the several States shall have concurrent power to enforce this article by appropriate legislation.

    Section 5

    This article shall be inoperative unless it shall have been ratified as an amendment to the Constitution by conventions in the several States, as provided in the Constitution, within seven years from the date its submission.
     
  23. Zorro

    Zorro Well-Known Member

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    The post of mine you were replying to referred to overall onsumer prices, not housing prices.
    https://www.washingtonexaminer.com/...tion-is-real-and-democrats-will-make-it-worse
    Stupid Question
    Not really an improvement. Do you know the difference between housing prices and consumer prices? This is a simple distinction not string theory.
    Do you know that "saturation" can occur to a sponge when you drop it a sink full of water, which has no more to do with consumer prices that whatever you are blubbering on about.
    Did it occur to you that Home Prices are not part of the CPI? This isn't String theory or even loop quantum gravity theory. The CONSUMER Price Index refers to things that are CONSUMED at a particular moment in time. Real Estate prices are not something that is CONSUMED, so they aren't in the CPI.
    Did it occur to you that when you respond to a post about CONSUMER prices that rather than five paragraphs on another subject, that perhaps you might respond by discussing prices of things CONSUMED rather than Real Estate?
    Well, certainly something new to laugh about.
    In Jan when Bumbling Bug-Out Biden took over from The Orange Miracle, the Jan year over year housing price increase was 11.26%
    In June it had skyrocketed to 18.63% That a 65.5% increase in the rate of destruction of the value of your housing dollar in just 5 months. Occuring at the same time as real wages, which rose faster during the first 3 years of the Orange Miracle than they had in the previous 20 years combined, are falling. Just how in the hell can you claim that price increases of this magnitude are sustainable?

    [​IMG]
     
    Last edited: Sep 20, 2021
  24. OldManOnFire

    OldManOnFire Well-Known Member

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    Soaring prices of homes and apartments in big cities...how about quantifying this?

    Please qualify the connection between immigration and building more homes?

    About 10,500 babies are born every day in the US...is it possible natural population growth is the culprit?

    Supply and demand rules the day! When you in some areas have more demand than supply you will have increased consumer prices...
     
  25. Mircea

    Mircea Well-Known Member

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    And "overall consumer prices" are rising as a function of Supply & Demand and not anything the Trump or Hiden Administrations did.

    Funny how you weren't able to connect the dots.

    Why don't you mosey on over to "Big Oil" (snicker) and show them how they can restart the 1,000s of oil and natural gas wells that were shut down due to low Demand with just a mouse-click.

    That will lower gasoline and diesel prices, reducing transportation costs which reduces prices.

    After you get through explaining to "Big Oil" (snicker) how to use a mouse, maybe you can show the Timber & Mining Industries how to restart production that was shut down due to low Demand using only a mouse-click.

    Then you can be everybody's hero.

    Do you know what a Supply & Demand Graph is?

    Supply & Demand applies to everything, as in every thing, as in every single thing. Why, yes, that includes housing prices.

    Do you understand English?

    Sat·u·ra·tion: to a very full extent, especially beyond the point regarded as necessary or desirable.

    Did it occur to you this thread is titled: Housing prices and rents are soaring up

    Okay, in Housing prices and rents are soaring up we can see the letters "C" "P" and "I"

    Not relevant.

    Here are some new words for your vocabulary:

    Average
    Mean
    Median
    Cost-of-Living
    Purchasing Power Parity
    Market(s)

    There are more than 927 separately functioning economies in the US and more than 120,000 housing markets.

    In order to avoid deceiving people, like you have been deceived, it is necessary to modify and adjust housing prices in those 120,000+ markets using Purchasing Power Parity to account for the whopping variations in Cost-of-Living across the US.

    If the Department of Labor set the federal minimum wage based on data from the Department of Housing & Urban Development, then the federal minimum wage would be $6.91/hour some of the 927 economies in the US and $26.90/hour in some of the other 927 economies in the US.

    To illustrate that, I have in the past posted links to a studio apartment that rents for $2,295/month in San Fransisco.

    At the same time, one can rent a 2 bedroom apartment in Cincinnati for $395/month.

    To illustrate further, who earns more money per year, an IT worker in Cincinnati making $44,000/year or an IT worker in White Plains (NJ) earning $100,000/year?

    The IT worker in Cincinnati actually earns $4,000 more per year.

    Yes, 44,000 is less than 100,000 but we ain't talking about 44,000. We're talking about $44,000 and in the US, $44,000 can be less than, equal to, or greater than $100,000 (contact your 4th Grade Math teacher to understand how units affect numbers.)

    So, to accurately report housing prices, it is necessary to first take the median price for each of the 120,000+ housing markets and then take the median price within each of the 927 different economies in the US, and finally adjust the prices using PPP to account for the huge differences in Cost-of-Living throughout the US.

    I never said it was sustainable, but had you taken ECON 101 in college, you'd know the answer to your question, which is that housing prices will decrease when Demand declines, and Demand will decline as the number of buyers dwindles.

    Had you bothered to avail yourself of studies rather than blogs and pundit websites, you'd know that Demand is unusually high due to historically low interest rates and the fact that Millennials have climbed out of their mom's basement and started buying homes.
     

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