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As of right now, dividend-paying mortgage REITs pay around 9-10%. The US government will never let its housing market fail, and low interest rates let these trusts borrow inexpensively.

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> The US government will never let its housing market fail,...

Maybe I'm totally missing your point, but didn't exactly this happen in 2008?

The US government came out and said that it would guarantee Freddie's/Fannie's debt which caused a sharp downtick as the government effectively admitted there was a possibility they could go to zero. Short (on the scale we're looking at) downturns, even if large in % terms, aren't a failure of a market. So, to answer your question, no.

While I agree that ever-increasing housing prices are almost the only platform both parties agree on, when there are already low interest rates and inflation occurring, the government is out of moves.

Never say never. Markets revert to the mean eventually.

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