tag:blogger.com,1999:blog-8515247115132134144.post3872231891744797947..comments2024-02-17T12:34:01.400-08:00Comments on Illusion of Prosperity: New Home Price Trend FailureStagflationary Markhttp://www.blogger.com/profile/04568993350246477976noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8515247115132134144.post-7009070456752658802011-10-01T22:39:41.294-07:002011-10-01T22:39:41.294-07:00Troy,
Even hyperinflation wouldn't be all tha...Troy,<br /><br />Even hyperinflation wouldn't be all that kind to homeowners as money would be diverted from rents into food. Many people can live in a single household in order to save money if basic necessities rise in price (especially if wages don't keep up).<br /><br />No easy way out for what ails us.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-46566707549534744062011-10-01T20:46:56.056-07:002011-10-01T20:46:56.056-07:00People think "inflation" will push up ho...People think "inflation" will push up housing, like it did in the 1970s.<br /><br />I'd like to think "inflation" will push down housing.<br /><br />But this thesis is just applying theory and not referring to history, where cost inflation creates wage inflation which lifts all boats including housing.<br /><br />Gen Y isn't getting any younger, and being a boomer echo it is pretty massive, compared to Gen X.<br /><br />For a while both Gen Y and the boomers will be in the same housing market. This should introduce supply pressure, if household formation can ever get going again.<br /><br /><a href="http://tfw.cachefly.net/snm/images/nm/pyramids/us-2020.png" rel="nofollow">http://tfw.cachefly.net/snm/images/nm/pyramids/us-2020.png</a>Troynoreply@blogger.com