No because houses as an asset class could still be overvalued relative to other assets.
Homes are expensive. Most people just can’t afford a big slice of land and home. They have to accept they will have to make do in an apartment that may be shared. Should the home they deserve just magically appear?
Just under 2/3 of US homes have an owner that lives in it.
Look at the percentage of houses bought by PE vs individuals in 2021.
https://www.redfin.com/news/investor-home-purchases-q3-2021/ Real-Estate Investors Bought a Record 18% of the U.S. Homes That Sold in the Third Quarter
yes, I know 18% < 1/3. But I also know that 18% > 6%, which was the figure in 2000.
the trend is pretty obvious.
They should have the right to purchase one, or have one commissioned, at the fair market value for materials, labor, and land.
I'm assuming "have one commissioned" is suggesting something about supply/zoning, but it's not clear to me what, exactly - if someone could afford to build or buy a house 3 miles from Dallas, should they also have the right to pay the same price to build something in the middle of Dallas?
Ergo I hold that the respective governments and their zoning/construction policies are trampling on the individual right to a fair market and worse are creating grotesque amount of economic inefficiency, and by extension social damage, in the process.
[0]Trivially: adding units to a lot to capitalize on a high price of land relative to materials + labor.
The point is between land, materials, and labor, a lot of people can’t afford what they think they deserve.
It doesn't make sense to me, but whatever.
I don’t think it’s a fluke that the overvalued markets correlate to regions that a lot of tech has moved over the pandemic like Boise, FL, TX and Nashville.
If they’re measuring current house prices to 2020 and 2021 tax data then they may be missing an influx of income in the denominator as well.
Stocks? Cars? Forex? IP? Crypto?
Genuinely curious because everything is more expensive than it was before.
If everything is overvalued, then nothing is overvalued [relatively]
Could it be that maybe peoples work is under valued relative to the value they help create?
The argument for overvalued housing is that everyone got antsy during the pandemic and wanted to change houses and change neighborhoods, but that will settle down now that the pandemic is waning.
Tech stocks seem to be falling because the pandemic-driven surge of screen time is fading now that the pandemic is waning.
So: is real estate entirely different from stocks? Or will it see a similar post-pandemic slump but just has more lag?
S&P 3400 in Jan 2020, 4146 today.
Dow 28,600 to almost 33,000 today.
Nasdaq 9000 to 12,300 today.
I agree with the sentiment though, in which case maybe the currency in which the assets are denominated is overvalued.