Big Phoenix
Pronouns: zie/zhem/zer
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Those durable goods numbers...
Its fine soon our economy will be nothing but ai.
Investing General Discussion
- Thread starter Furious
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Its fine soon our economy will be nothing but ai.
Mist
REEEEeyore
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Those durable goods numbers...
It's the lack of housing inventory/home sales.
We 100% need a national initiative to build >10 million houses. The only way to fix our economy is more supply of housing.
This country has become a retirement home for boomers who don't want any new construction.
Big Phoenix
Pronouns: zie/zhem/zer
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Its the interest rates and inflation. I said in the home buying thread but current conditions make it a loss to sell my house and buy a new one even using all my equity as a down payment.
Also, major league cope;
www.marketwatch.com
Also, major league cope;
Durable-goods orders rise for third month in a row — if Boeing is taken out of the equation
Total durable-goods orders sank 5.2% in July, factoring in the decline in Boeing contracts.
www.marketwatch.com
Mist
REEEEeyore
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There's just not enough houses, period. "Inflation" is a catch-all term. If you want the price of something to come down in any natural way, the only way to do so is to produce more of it.Its the interest rates and inflation. I said in the home buying thread but current conditions make it a loss to sell my house and buy a new one even using all my equity as a down payment.
Also, major league cope;
Durable-goods orders rise for third month in a row — if Boeing is taken out of the equation
Total durable-goods orders sank 5.2% in July, factoring in the decline in Boeing contracts.
These interest rates are only high by comparison to recent times. Historically, they're actually low-mid.
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OU Ariakas
Diet Dr. Pepper Enjoyer
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This is true, but they need to be 10 million STARTER homes (2/3 bed 1/2 bath) and they need to be in cities of populations less than 1 million people.
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Big Phoenix
Pronouns: zie/zhem/zer
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1985
Median income $23500
Median home price $84300
Interest rate 12.43%
2023
Median income $56600
Median home price $416000
Interest rate 7%+
Yeah the 1980s where a lot more affordable.
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Mist
REEEEeyore
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So, what you're saying is that it's not the interest rate that's the problem, it's the base price. And the base price is a simple supply and demand issue.
Thanks for agreeing with me.
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Except you can't.
There are myriad political reasons why, logistical reasons why, and time reasons why you can't just magic 10 million more houses into existence. And to think there's anything 'natural' about the US housing market, or any market in the US for that matter, is nonsense.
If we're talking about things that would be nice but can't happen, I have a huge list to add here. But this is the investing thread, so let's try not to start that derail.
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Mist
REEEEeyore
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Point still stands, we'll be stuck in a low growth cycle trending down as long as there is a lack of affordable new homes. And that is relevant to investing.
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Furry
🌭🍔🇺🇦✌️SLAVA UKRAINI!✌️🇺🇦🍔🌭
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WuT?
This is like saying the sky is blue, because there rocks in my yard. How does one relate to the other though?
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Mist
REEEEeyore
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Housing prices are a primary driver of other big ticket durable goods purchases. This is an economic fact.
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Blazin
Creative Title
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Renovation industry picks up a lot of the slack when people are not moving. Does this really need to be explained. New home sales are up...
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Furry
🌭🍔🇺🇦✌️SLAVA UKRAINI!✌️🇺🇦🍔🌭
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Perhaps we can fix the economy by building it efficiently, in blocks. Preferably five stories.
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Mist
REEEEeyore
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Mist
REEEEeyore
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TJT
Mr. Poopybutthole
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Sure, but the relative cost of a house is much higher than back in 1980.
My dad paid like $25k in 1982 USD for our childhood home. My grandparents paid $175k ($650k in 2023) for land and a completely custom home build in like 1975.
$25k in 1980 is like $93k today in 2023 dollars. You ain't finding no liveable house nowhere for that amount of money.
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Big Phoenix
Pronouns: zie/zhem/zer
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