The Upbeat Downbeat on Housing and Commercial Real Estate
The Upbeat Downbeat on Housing and Commercial Real Estate by David Haggith for The Great Recession
I mentioned in a recent article that the weird thing about this recession is that it is the only one in which personal income has gone up during a recession. That, of course, is because of government assistance, which is making it so we don’t have to feel the pain of a recession that the government, itself, caused — through its massive debt, tax breaks for the 1%, reliance on the Fed to solve government’s problems, and most currently through its forced economic shutdown as a response to COVID-19 — something that even the WHO now says was failed policy that should never have happened — even though they helped make sure it did happen!
All of that is weird stuff, but another really weird thing about this recession is that the housing market took off as though we had just entered the best of times this summer. Who would have guessed: 32-million people out of work, and we have a housing market melt-up? Of all the unlikely times for a new bubble to form! I didn’t read anyone who saw that coming. Neither did I see it coming, but it added brilliance to the summer that has continued burning all the way into October.
If you are looking to buy a house, as many are, that silver ray has a dark lining because it is driving up your cost, making it harder for you to enter the market. We are seeing rampant inflation in housing prices outside of major cities. The housing market is exploding into a new balloon (far too big to call a bubble) because there is severe shortage in available housing right as demand soared and interest hit an all-time low.
The mass-migration problem
Oh, there is plenty of housing supply opening up in the major cities because no one wants to live there anymore. Urbanites now want to migrate to the country or to smaller towns to escape riots and COVID concentration camps. COVID created a sudden reversal (perhaps just temporarILy) of a migration pattern from country to city that had endured for decades.
Of course, what makes “the country” the country is the lack of housing. Likewise with what makes small towns small. That means the desired new homes have to be built from scratch. So, we’re in a rush to fill in those beautiful fields and forests with new housing developments, turning them into rapidly expanding suburbs under that bizarrely outmoded idea that you can actually move swarms of people into the country and still have it be country.
Californians in particular are doing what they always do in times like this — rushing to transform small towns outside of California into expensive larger towns that run like Californians know towns ought to run (so they can do it all again fifty years from now when they, again, flee what they recreated). Once there, they will establish the same liberal polices of teaching racial hatred and police hatred by endlessly reminding everyone of why they should hate each other along with encouragement of riots as a form of free speech that have turned their cities into war zones, forever oblivious to the fact that hatred is what it is partly because they do all they can to enable riots while throwing fuel on smoldering animosities.