For most of our lives, house prices have just gone up and up and up. Most people believe the sales-line, "House prices only go up".
Further, most people believe the sales-line, "Your house is your biggest asset".
This sales propaganda is about to bite a lot of people in the ass. As we are about to experience, not just a crash, but an obliteration of the suburban housing market. It will be Biblical. And truly, the people watching the real estate market just expect another 2008. The people not watching the market, or just listening to real estate agents, are seeing the slight downturn as a sign that people should swoop in and buy. But people are not buying. The house prices are just sorta hanging there, before the plummet.
Suburban house prices are truly hanging in mid-air. And they are going to fall to zero, past zero.
Baby Boomers' Empty Houses
Demographics is king. It tells what the future will bring. And the future for suburban housing is inventory will greatly exceed demand.
I know this is hard to imagine, given the stories we hear on the news all the time. That we have a huge shortage of housing.
The reality is that builders are pulling all the stunts to try to get their latest builds sold. In some areas, you can get a brand new house for less than the same model being resold from last years tract.
Into this market, is coming the boomers. Boomers own 25% of the houses, and about 45% of the value of The US housing market. And so, ¼ of the houses will be dumped on the market over these next 10 years as boomers move into retirement homes or mortuary plots.
That is a huge amount to dump on the market. Especially on a market that can't afford these super high prices.
Boomers think they have all this equity tied up in their homes; What they are going to find is that they are already too late to sell at the top, and they are going to be chasing every falling prices.
People who can, flee cities leaving Empty Houses
Cities are getting bad. Especially blue cities. Crime is rising. The police attack good citizens and avoid interacting with the bad elements. Especially the "protected classes".
Jobs are leaving the cities. And more and more jobs will be destroyed by automation and AI.
Stores are closing. Malls are gone. Restaurants never came back after covaids. So, now there is less of the conveniences that city life offered. (and there is even less jobs)
Homeless encampments are appearing everywhere. Blue state governors are spending more money housing illegals than helping homeless vets who protected the country.
Many jobs can be done with just an internet connection, and those people, are moving out of the cities.
unCivil War, Plague, and Death leaves More Empty Houses
- Demographic collapse is upon us.
- All causes mortality is still going up
- Crime is going up in the cities, and the police seem to be doing the opposite of what we be good for good people.
This is bad enough, but we are look at even more declines incoming. UnCivil war is being pushed hard. There is all kinds of talk from the WHO that another virus is coming, and this time there will be more deaths. Food production and distribution are being impacted from all directions. Meaning we are one step closer to starvation. This adds up to many more people dying.
Lets say this all adds up to another 25%, the boomers' houses being 25% also, that is 50% of the houses being empty.
If half of the houses are empty, and there is very few people who need a home, then what happens to the prices? Especially if the communism message is really pushed at the same time? We get people moving into empty houses if they need one. Not purchasing, just squatting.
Homes have no resale value when people are no longer respecting property rights, and half of the houses are empty.
And i have left out so many more reasons why huge tracts of suburban homes will be left completely empty.
There will be no one to sell these houses to. There won't be mortgages, even if people wanted to buy one of these abandoned places.
Until now, inventory has been kept tight via regulations and managing building permits. And when we get to the point of having houses for everyone, then houses will start losing value. It will be a race to the bottom as sellers try to compete for a buyer. That is, until sellers just give up. It will cost too much to get rid of the house, so they will just be left abandoned.