[collias]

Give every home owner 30-year locked interest rate mortgages at <3%, then immediately raise the rates again, and no one wants to sell...ever.

It makes no financial sense to sell a property locked into such a low interest rate while rates are moving up.

Combine this situation with fairly stringent housing code requirements that make new housing difficult and expensive to build, and you have a recipe for low supply. Housing prices are exploding, and will continue to do so until one of the above situations change.

At the current rate, we will have an entire generation of renters unless they inherit property.

[ChuckNorris89]

>At the current rate, we will have an entire generation of renters unless they inherit property.

This is already the case in some European countries like Germany, Austria and Switzerland. Buying without inheritance is nearly unaffordable already for most people.

I went, for shits and giggles, to a house viewing hosted by a realtor, to see who can afford so many 600k - 1MM houses when the average national income is around 1800 Euros/month NET. I expected it would be full of people who cashed out on crypto at the right time, but it was all 20 somethings with mon and dad who were there to buy their kids a nest.

The middle class who could buy a house while still enjoying luxuries like vacations and a car, from average salaries without inheritance, is dead and buried here.

As a double whammy to millennials and younger who will not own their homes, rents are going up, wages are being eroded by inflation and the retirement age is also going up, and the pensions sums to be received are going down. I just hope I can still afford a noose and a second hand chair on my future pension.

[derekp7]

You have a double whammy, because houses are priced based on monthly payments. So when the interest goes up, the market price of the house goes down. Which means that anyone that bought recently will have to wait quite a while to get enough equity to pay for the decreased sale price.

[pharmakom]

Fortunately many people can’t hold forever so there will still be some volume at the lower prices.