‘any time it’s nice outside I spend one million dollars’ –@danielleweisber
Canada, one of the most real estate-obsessed nations on earth — and one of the least affected by the 2008 crash — is up 42+% in the past year alone.
Even in Ethiopia, where my wife grew up, a three-bedroom detached house in the capital can cost you $1+ million USD.
Until recently, most people’s house price paradigm looked something like this:
A house’s market price is the maximum amount that a buyer can expect to afford over the next 25–40 years. But because wages are flatlined and purchasing parity is the same as in 1978, the only rational explanation for this current price explosion is a giant debt bubble.
But what if the paradigm — the baseline assumption of what dictates house prices — is changing?
What if the newly-redefined value of shelter is the maximum amount of annual rent that can be extracted per unit of housing? […]
As reader Valerie Kittell put it: “Airbnb-type models altered the market irreversibly by proving on a large scale that short term rentals were more lucrative than stable long-term residents.”
We’re in the middle of a paradigm shift to corporate serfdom.
Stop enriching corrupt banks — pay off your mortgages and never look back. Parents and grandparents with means: Help your kids get a start in housing before it’s out of their reach forever.
