This is what’s not happening in the housing market: young people buying homes — even though there are falling mortgage costs and rising rents.
The American Dream? Not for millennials.
Rents and housing costs make up 30% of the Consumer Price Index. They’re its largest component. They’re soaring in real life. But not in the CPI.
Sweet Spot: Homes above $15 million.
Something has to give. And it’s not going to be the maxed-out American middle class.
The magic mix becomes toxic.
Not everyone is irrationally exuberant.
Housing Bubble 2: ballooning inventories of new single-family homes.
Profit grows on trimmed trees, freshly painted walls, and rehabbed bathrooms, and flipping volume soars, and nothing can go wrong. Then something goes wrong.
You’d think the housing market is in fine shape, based on the sizzling optimism of our home builders.