Even the Fed is getting antsy about this raging mania house-price inflation. Housing Bubble 1 is starting to look cute in comparison.
Asking rents spiked 10%-25% in half the cities. Rents fell in only a few, incl. -25% in San Francisco from 2019 peak.
Sales of new single-family houses fall 24% from a year ago. The lower end has died.
But now the Fed is planning to end QE.
The extra $300 a week in federal unemployment benefits, on top of state UI, were designed to give people enough money to pay rent.
“Normalization” or “deceleration,” as this phenomenon is called, is setting in.
Mass-forbearance is the best thing that ever happened to sweeping reality under the rug. But now, there’s a huge mess under the rug.
It isn’t buying whole neighborhoods; it’s buying whole new subdivisions of built-to-rent houses.
Raging mania house-price inflation.
The rental market is in turmoil after jobs and people left, and price discovery has set in. Falling rents are a market-based solution to the “Housing Crisis.”