HBAS #4: "Everyone Needs a place to Live'

The housing bubble argument that says 'Everyone needs a place to live' is probably the most ridiculous one out there. The implication is that therefore prices will continue to rise or that prices won't decline. Here is my response:

• People do not need to buy. People can and do rent.
• People do not have to live in a bubble market. They may move to cheaper locales.
• There is a practical limit on what people can afford based on income, other expenses, interest rates, and lending standards
• Many of the people now buying are not living there, they are renting ( or trying to rent) their highly leveraged housing units.
• People have always needed 'a place to live,' which did not stop prices from falling in California in the early 90's

Another Housing Bull Argument ( HBA ) debunked.