131 sats \ 7 replies \ @edulopesf 31 Aug 2023 \ on: People in the US are getting poorer since 1963 (housing data shows). bitcoin
I'm not an expert but other factors also may be affecting the housing market...
Most notably excess of regulations on real estate as well more people moving in to more populated areas...
But of course, FIAT currency inflation is a major factor.
I almost sure that's happening on other countries as well...
Yeah, for sure there many other factors as well, and also there are many major economic events that have affected the numbers (middle east oil crisis, 2008 crisis, 70's inflation) but the general trend is clear IMHO.
Cheers!
reply
In some areas, there's a lot of speculation on housing as well. In my city, there was (maybe still is) a ton of empty apartment buildings owned by Chinese investors. People buying up property and hoping for a return, without bothering to rent them out.. it's really messed up the supply-demand dynamics.
reply
Investors are smart. They know the fiat money is a scam. The moment the get fiat they turn it into stone! Stone is more precious than paper. If the stone is an appartment, a villa it is more worth.
reply
Exactly, I have heard many times the saying "put the money to work". It must be about this.
Investors are brainwired with this rule and I agree they probably know it is a scam.
reply
Houses are also larger, higher quality, air conditioned, etc. Also, the extremely low interest rates of the past couple decades have radically inflated housing prices.
reply
Indeed. Because fiat money can be printed ad infinitum the price of money - the interest rate - was close to 0. In Europe it was even negative. You had to pay the banks to leave your money on the banks.
So people got fiat money and some invested in real estate.
While average Joe was happy with the free stimulus checks and the helicopter money by the government, the wealthy people grabbed the houses for free.
This always happens. Free money doesn’t actually exist. You get the bill back in higher prices of food, energy etc and everything that cannot be printed easily.
People think fiat money is wealth. Fiat money is worthless. It is what you can buy with it that is worthed.
A house
A vacation
A car
Those are valuable things. Not the money.
reply
Sure, some of it's fake, but some of it is just a natural outcome of greater material wealth and more advanced technology.
reply