US home prices have soared 47% so far this decade, outpacing all of the growth seen in the 1990s and 2010s
businessinsider.com
- US home prices have soared 47% so far this decade.
- The price surge has outpaced the gains seen in the 1990s and 2010s, and is nearly ahead of the 2000s.
- The rising value of homes has coincided with a millennial-fueled demand surge and years of low mortgage rates.
US home prices have soared 47.1% so far this decade, according to a ResiClub analysis of the Case-Shiller National Home Price Index.
The massive price gains seen in the first four years of the 2020s have eclipsed all of the growth seen in the 1990s and 2010s, according to the analysis. Housing prices in those two decades grew 30.1% and 44.7%, respectively.
On top of that, housing price growth in the 2020s is on the verge of eclipsing all of the growth seen in the 2000s, which was 47.3% after peaking at just over 80% before the 2007 housing market crash.
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It's not a bubble, it's much much worse. You only hear of it in whispers among the financial world. It's stagflation. Japan seen this story before, they call it their lost decade that has been going on for nearly half a century. It's when you deficit spend like crazy to prop up the economy and that leads to high inflation and stubbornly high costs (IE: Housing). It's coupled with basically no wage growth and high underemployment. Does any of this sound familiar? It buried Japan, it might bury USA.
This spike in Inflation isn’t that high in the grand scheme of things and we have both historically low unemployment and higher than average labor force participation.
The current situation doesn’t resemble stagflation.
Actually it exactly resembles stagflation. It's one of the reasons I said underemployment and not unemployment. During the 90s, Japan's inflation rate was around 3% and they couldn't get it under 2%. Sound familiar?
https://www.in2013dollars.com/japan/inflation/1990#:~:text=The%20yen%20had%20an%20average%20inflation%20rate%20of,82.953%25%20of%20what%20it%20could%20buy%20back%20then.
The other part was low unemployment, but mostly government jobs that didn't do anything. But it did create historically low unemployment and higher than average labor force participation.
https://mpra.ub.uni-muenchen.de/14332/#:~:text=The%20%E2%80%98lost%20decade%E2%80%99%20in%20Japan%20was%20a%20period,when%20it%20reached%20a%20historical%20maximum%20of%205.5%25.
What you are seeing is USA doing exactly what Japan did in the 90s, which is have a target inflation rate of 2% that they can't reach and hiding the high unemployment numbers with underemployment in crappy jobs.
Edit: just look at this rocketing government employment.
https://usafacts.org/reports/2021/government-10-k/part-i/item-1-purpose-and-function-of-our-government-general/employees/#:~:text=As%20of%20the%20dates%20shown%20below%2C%20there%20were,local%20government%20employees%2C%20of%20whom%2023%25%20work%20part-time.
More than doubled in a decade.
I appreciate you providing sources but even your sources don’t align with your claims. Per your source, Japan averaged less than 1% per year inflation during the 90s.
Your source on government employment also doesn’t show it doubling in the last ten years. Through my own searching I’m seeing government employment dropping per capita over the last twenty years.
Ultimately, it doesn’t matter. I don’t personally see the signs of stagflation and I would encourage readers of these comments to analyze the data themselves and not blindly accept your claims.