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Originally Posted by MikeWaters
for the housing market to crash, there must be a surplus of housing. That's the issue: it's still a tight market.
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My understanding is that a lot of the real estate being bought and sold in the West is speculative investment. Sure they will rent it out to someone, but the rent won't cover the cost of the mortgage. If these are second homes and rental homes, does that not suggest a bit less tight of a market than it would otherwise appear?
But I guess there is a really tight rental market too... at least there is in Los Angeles.
Perhaps we are witnessing an historic division of land ownership that will come to redefine 'the American Dream,' putting home ownership permanently out of reach of a vast majority of working class people, like it is in many other countries.