Hmmm. I wonder if tax policy has anything to do with this, or the way wealthy people can shelter money in a residence. I wonder if lack of savings interest is a big driver...
In short, your analysis is grade school level.
In short, your analysis is grade school level.
Correct me if I'm wrong, but I didn't analyze anything. My goal was to assert: Inflation is present in the US economy, Home prices as an example; and to provide some relative bounds on what that rate might be.
>I wonder if tax policy has anything to do with this
What's you thesis of the tax policy changes that occurred in the past 12 years that caused asset-price inflation?
>way wealthy people can shelter money in a residence
How are "wealthy people" "sheltering money" in the bottom 50% of all home prices -- those homes who prices would need to change to change the median price?
>lack of savings interest is a big driver
The opportunity of high, investment returns doesn't reduce the prices of the goods we need to buy to exist.
If I was to actually provide some analysis for the price increases, I'd posit: Downward, interest-rate manipulation by central banks has caused systemic-wide credit expansion. The new money that results from this policy affects economic of all goods but most severely inelastic goods -- such as houses and in markets that receive artificial economic intervention from central planners (in the US, the housing market is a prime example).
This is a perfect storm for pushing up costs and denying lower income Americans the ability to pay rent and buy homes.
citations: https://blogs.cornell.edu/cradle/2019/02/11/what-the-federal...
https://www.forbes.com/sites/advisor/2020/07/28/fed-policy-h...