Interesting argument. This argument appeared in The Conservative Voice magazine under the title
There is No Housing Bubble!! . You always need to wonder about a story title that has two exclamation points in it. Joking aside the author writes:
"The real reason for the housing boom is that American families are getting wealthier, which means they can afford to buy bigger and better housing, while the monthly cost of financing those upscale homes out of current income has dropped significantly with the lower mortgage rates"
Wealth is creating this housing boom? Hmm.
- Incomes are stagnating
- Savings rates are now at zero
- The 'wealth' that is being generated is because of the housing boom.
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