ID: A Sophie Labelle 4 panel comic featuring Stephie in different poses, saying:
Landlords do not provide housing.
They buy and Hold more space than they need for themselves.
Then, they create a false scarcity and profit off of it.
What they’re doing is literally the opposite of providing housing.
Bull-fucking-shit.
20 years ago, houses in my neighborhood were selling for around $50k. Those same houses today hold a current market value of over $800k.
For comparison, the value of the USD has lost roughly 40% in value over the last 20 years, meaning if the houses in my neighborhood were only a “so-so store of value” (tracking inflation) they would be worth roughly $80k today, 10x less than the current market value.
For another comparison, if you put $50k into an index fund that tracked the S&P500 20 years ago, it would be worth roughly $350k today. That’s not even half of the return houses in my neighborhood are getting over the same time period.
Sure it costs a lot of money to maintain a house and pay taxes and insurance over that 20 years and that’s going to eat into those returns. But I can guarantee you I’m paying more than that to rent a similarly-sized property, which you would be doing anyway if you didn’t have the capital to own a home.
You’re sure living in a real estate bubble. Not going to last, thankfully.
A lot of people will probably doubt this when living in the middle of the bubble. But it has happened elsewhere already. China’s RE bubble has melted down spectacularly and their economy is still deflating despite massive government stimulus. I imagine this will be the fate of the American Everything Bubble too, albeit we can’t know when it will happen. The last deflationary episode around 2014 coincided with the meltdown in the American shale oil industry, which as we well know is going to happen again with the decline of the Permian - maybe this will start the bubble bursting.