Pent up demand

A Housing Bubble Within a Bubble

Disclaimer: I am a family man (previous owner) who is renting right now.

I am sick-to-death of the hearing the "losing equity" argument. I rent a large apartment for $2600/mo in a place where the carry on a similar size single family would be $4000/mo plus. Oh yeah, prices are falling. What the heck am I missing out on by renting? Let's see, $1400/mo in carrying cost and a nice chunk of negative appreciation.

My landlord is practically begging me to buy the 3-family house I rent in. "Great income" he says. Aw, thanks, but the reality is he's a smart money guy who missed the top and is smart enough to know that you don't get wealthy by holding assets that decline in value.

I agree 1000% with the admonition against distant suburbs. Expensive gas is going to kill those places.

Housing is not "cheap" in the heartland. It just stayed more sane than the coasts. I live on the east coast but grew up out there. When I go back to visit, I see lots and lots and lots of "dream homes" built by boomers. I hope the quality wasn't too bad; I look forward to retiring to one of those babies at a nice discount to what Mr. and Mrs. Boomer paid to build it.