[llamaorama]

Originally Posted by Crawford

The average U.S. household already owns a house.

If home prices increases, then purchasing power increases, because the asset is already owned.

The supposed "housing crisis" is always being cited by people who don't live in these supposedly crisis-plagued markets. The people actually owning real estate are very happy, and are no more worried about a "housing crisis" than they are about a "401k crisis" as their assets grow.

Yes, there are fundamental issues when housing prices massively outstrip income gains, but housing is an investment, and investment gains are a very good thing for most. IMO the best thing is to provide subsidized rental housing in high-cost markets.

Unless you are young, or you seek to move somewhere.