The U.S. is in a massive housing bubble. Prices are artificially high due primarily to the downstream effects of financialization. Localized supply and demand dynamics — which today are also downstream of financialization — are a mess. Decades of housing subsidies, down payment assistance, artificially low interest rates, money printing and endless bank support have turned the American home into a financial product first and a place of shelter second. The extent of the distortion is unprecedented, something covered in “Escaping the Housing Trap: The Strong Towns Response to the Housing Crisis.”
Source: The Housing Market Is a Bubble Full of Fraud, and It’s Going To Pop
