Trump’s tax cuts gave wealthy individuals and big corporations a mountain of cash, which they promptly dumped into real estate, driving housing prices through the roof. Then Covid-19 hit, and interest rates dropped to rock-bottom levels, encouraging even more spending. People got stimulus checks and, with nowhere to spend money during lockdowns, saved a ton. First-time homebuyers flooded the market, pushing demand even higher.
Meanwhile, everyone wanted out of crowded cities, heading for emerging hotspots. Once lockdowns lifted, travel demand exploded, and investors bought up short-term rentals and Airbnbs like there was no tomorrow. Builders tried to keep up, but lumber prices skyrocketed, making new homes more expensive and driving up the prices of existing ones.
The Fed tried to cool things down by raising interest rates, but that just made current homeowners stay put to avoid higher mortgage costs, leading to a housing shortage. Baby boomers, with their homes paid off and stock market gains in hand, kept buying second homes, barely noticing the rate hikes. Investors continued snatching up rental properties, inflating the bubble even more.
Pandemic-driven migration saw people moving from cities to the suburbs and smaller towns, spiking demand there. Institutional investors swooped in, buying residential real estate in bulk and often outbidding regular buyers. The rise of Airbnb led many to convert long-term rentals into short-term ones, squeezing the supply for traditional homebuyers.
In a nutshell, the housing market boom is a perfect storm of tax cuts, pandemic savings, shifting migration patterns, aggressive institutional investing, and the Airbnb craze. It’s a wild ride, and there’s no sign of it slowing down anytime soon.
I know someone that created a fake LLC company and got over 100k PPP loan. Moved out of the city and into a nice suburban mcmansion. Still hasn’t gotten caught yet. I’m waiting for the day it ducking happens. I wonder how common that was?
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Oh crap
Trump’s tax cuts gave wealthy individuals and big corporations a mountain of cash, which they promptly dumped into real estate, driving housing prices through the roof. Then Covid-19 hit, and interest rates dropped to rock-bottom levels, encouraging even more spending. People got stimulus checks and, with nowhere to spend money during lockdowns, saved a ton. First-time homebuyers flooded the market, pushing demand even higher.
Meanwhile, everyone wanted out of crowded cities, heading for emerging hotspots. Once lockdowns lifted, travel demand exploded, and investors bought up short-term rentals and Airbnbs like there was no tomorrow. Builders tried to keep up, but lumber prices skyrocketed, making new homes more expensive and driving up the prices of existing ones.
The Fed tried to cool things down by raising interest rates, but that just made current homeowners stay put to avoid higher mortgage costs, leading to a housing shortage. Baby boomers, with their homes paid off and stock market gains in hand, kept buying second homes, barely noticing the rate hikes. Investors continued snatching up rental properties, inflating the bubble even more.
Pandemic-driven migration saw people moving from cities to the suburbs and smaller towns, spiking demand there. Institutional investors swooped in, buying residential real estate in bulk and often outbidding regular buyers. The rise of Airbnb led many to convert long-term rentals into short-term ones, squeezing the supply for traditional homebuyers.
In a nutshell, the housing market boom is a perfect storm of tax cuts, pandemic savings, shifting migration patterns, aggressive institutional investing, and the Airbnb craze. It’s a wild ride, and there’s no sign of it slowing down anytime soon.
I know someone that created a fake LLC company and got over 100k PPP loan. Moved out of the city and into a nice suburban mcmansion. Still hasn’t gotten caught yet. I’m waiting for the day it ducking happens. I wonder how common that was?