I stayed at an Airbnb recently And I was curious what the actual value of it was so I looked it up on Zillow. Sold in 2015 for 350k, sold again in 2022 for $750k, now listed for sale 1.2 million. It’s a cabin in North Carolina, literally nothing special. I remember back before 2020 there was tons of mountain and cabins and homes and stuff like that anywhere from 2:50 to 500K. Now you won’t find a single one less than 800k…
Regular homes are just as bad. I’m seeing homes in my area that sold for around $200 to 300K in 2019, now they are 500k and above. I don’t understand how this makes any sense? Salaries were not doubled, but somehow the price of all homes are now twice as much. Is this some sort of cost fixing scheme by the real estate industry to just drive up the price of homes and double them or something? Because it doesn’t really make sense to me I guess.
The answer is always speculation investment. People are on average richer and real estate is the only trully limited economic resource as we have limited land especially in desired locations.
Seriously lookup how much of real estate is uninhabitable.
People are richer, the tech is better and everything we know about economy would indicate that real estate should be more accessible but that’s not the case because the market is manipulated.
The best part? If you invest in a stock index you’ll almost always out do real estate ownership almost anywhere in developed world. So people are hustling this stupid game while they could just sit back and watch money do money things.