Cause and effect. Which one is the cause, which one is the effect? Obviously there is a feedback loop.
Low inventory leads to price appreciation andâŚ
Price appreciation leads to low inventory andâŚ
Which one starts first?
Confidence. Thatâs what starts the mess.
The real estate or big housing investors never, ever have hit the ball out of the park. They are always behind the fact that no matter how, if you start building now, it wonât be enough to supply the demand.
Some, most of them worry about profits, but, instead of getting the famous drip at a time, they want to hit payday at once. It never works that way, but they keep doing it.
Just imagine yourself. Wouldnât you want to be finishing a housing project right now?
I think we are hitting a tipping point. Just look at how many major metro areas are now majority renter. I think buying a SFH is out of reach for a majority of Americans. Most people are going to end up renting (SFH or MFH) or buying condo/townhomes⌠Look at how much new construction is MFH. Only the top 20% or so will be able to afford buying a SFH.
Thatâs why I wonder why so many homes are not being bought knowing they are not making land anymore?
Are you saying this is going to be a permanent trend? That is to say, SFH would be forever out of reach hence prices would continue to appreciate regardless.
Well, what has happened in say Singapore? Arenât there some SFHs in that sea of condos? Can we assume very, very expensive?
I think so unless thereâs some event that causes a bunch of people to sell at the same time.
In Singapore, bungalows (concrete SFHs) are forever out of reach to middle class and heartlanders. Middle class (less than 15%) live in private apartment/ condo/ terrace houses/ semi-detached. Heartlanders (80+%) live in HDB. Some middle class stays in HDBs and rent 
out their private condos.
Another no inventory storyâŚ
So 20% equity is âsignificantâ? I think 50% is more like it⌠
Yeah, thought that was like what our Fearless Leader would call âweak sauce.â
Home ownership rates will continue to go down as urbanization increases.
The post WW2 trend to buy sfhs has been reversed. .No room for sfhs in big cities
Exactly, so it shouldnât surprise anyone then why neighborhoods like the Sunset, Richmond, Excelsior, etc. are booming. Get that SFH in a world class city before they are all gone and the only thing left is essentially owning an apartment with an undesirable extra monthly fee.
IMHO, all SFHs in urbanized cities should be demolished to make way for high rise, with many parks of course.