"As the real cost of other goods decreases, people have more disposable income left over for housing."
most bulls can't imagine a world where people don't spend as much as they can on housing. where they might have higher priorities.
We spend the majority of our time in our homes... probably at least 12-14 hours per day for most people.
I work from home as well, I probably spend 22-24 hours a day (depending on the weather) in my house during the working week.
It makes sense that this is where we devote most of our income - into making our homes as comfortable as possible.
Why do you believe this would change, when it hasn't changed for thousands of years?
When was the last time our homes were not a priority for humans? What could possibly be a higher priority than our homes?
Family? Sure... they need to live in a home. We provided homes for our families?
Food? We normally eat food in our homes.
What else? Where else do you think most people would prioritise their spending?
so these are your arguments for house prices going up?
if so, why we are spending more on homes now than 20 years ago? do we spend more time at home? do we have larger families now or we eat more at home today than 20 years ago? does people in Germany for example spend less time at home so they have to spend less?
what happened with people in USA and Ireland, does they spend less time in homes now that 5 years ago? - how suddenly houses became less of a priority?
with this kind of nonsense posts you just look more desperate
"As the real cost of other goods decreases, people have more disposable income left over for housing."
most bulls can't imagine a world where people don't spend as much as they can on housing. where they might have higher priorities.
We spend the majority of our time in our homes... probably at least 12-14 hours per day for most people.
I work from home as well, I probably spend 22-24 hours a day (depending on the weather) in my house during the working week.
It makes sense that this is where we devote most of our income - into making our homes as comfortable as possible.
Why do you believe this would change, when it hasn't changed for thousands of years?
When was the last time our homes were not a priority for humans? What could possibly be a higher priority than our homes?
Family? Sure... they need to live in a home. We provided homes for our families?
Food? We normally eat food in our homes.
What else? Where else do you think most people would prioritise their spending?
Nothing wrong with what you're saying, but its NOT an argument for RISING house prices.
If I buy a house today for $500k that meets all of the above, why should I expect that it'll be worth 10 or 20% more next year? (not saying you're saying that, but you know what I mean).
So if I now come back in 3 years and the same house costs $750k what has justified the price rise? Its still the same house, and meets these needs in the same way.
If you take your argument to its extreme then the next 100 years of productivity gains (and hence lower real prices) will all just flow into house prices, so that in 100 years time housing costs will eat 95% of our incomes. You could argue that that is possible, but at some point it must become irrational to make that investment. If rents were to keep pace with that then the whole game would be ended by massive social unrest. If not, then quite soon it would be better to rent even despite the rent-free years you would forego.
If you take your argument to its extreme then the next 100 years of productivity gains (and hence lower real prices) will all just flow into house prices
I wouldn't say 'all' gains do/will flow into housing, but I see no reason why a significant portion of gains wouldn't continue to flow into improving our homes.
If you take your argument to its extreme then the next 100 years of productivity gains (and hence lower real prices) will all just flow into house prices
I wouldn't say 'all' gains do/will flow into housing, but I see no reason why a significant portion of gains wouldn't continue to flow into improving our homes.
"wouldn't continue to flow into improving our homes"
See, if Home A is worth $500k now and $750k in 3 years WITHOUT ANY CHANGES how does that constitute "improving our homes"?
There are plenty of houses around that have been in place for decades are relatively unchanged, now trading for many multiples their original value. Sure they've now got ducted heating, modern facelifts etc. These could be costed at maybe a few tens of thousands of dollars, maybe six figures for some big ones.
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