Get the latest tech news
What happens when housing prices go down?
A reflection on affordability, finance, and the deep contradictions we struggle to face.
In The Atlantic, Rogé Karma recently pointed out that housing prices are rising fastest in the very cities once seen as escapes from high-cost coasts, places like Phoenix and Dallas, long considered “easy to build in.” These Sun Belt metros were supposed to be immune to the affordability crisis. It’s being sold as a way to cut closing costs and streamline the buying process, but it accentuates a core fragility that helped spark the 2008 housing crash: treating risk as something that disappears when you pool it. For buyers, it’s a great deal only if you don’t understand compound interest, if home prices rise for decades at rates higher than inflation, or if you’re just desperate enough to sign.
Or read this on Hacker News