Zach WeinersmithMay 15, 2024

Stupid econ question:

So it looks like a lot of remaining inflation is rent. In that case, wouldn't you want to lower rates to increase home-building and home-ownership in order to reduce rent pricing?

Show threadLouis Marelle

@ZachWeinersmith I cannot speak for the US or the world, but in France the housing affordability crisis has been shown to be due to low interest rates. So I think it would make it worse.

I was very surprised by this but the numbers are really clear. Housing prices divided by household earnings were extremely stable for decades, but exploded from 2002 when rates decreased.
https://elucid.media/economie/immobilier-logement-prix-marche-04-2024-crise-poursuit-baisse-pas-terminee

La crise immobilière se poursuit : les prix vont encore baisser !

Le marché immobilier va probablement rester grippé en 2024 malgré le discours ambiant. Les banques vont rester frileuses

Élucid
May 15, 2024 at 7:38amWeb