If you are rich and own multiple houses or other expensive assets, they appreciate even faster during times of high inflation…compare that to a young working class couple hoping to someday buy their first house which continually gets farther out of reach…which ones are most hurt by inflation?
This sentiment stems from not being able to distinguish types of inflation.
In the current environment, cost inflation is not a problem anymore. The reason why the FEDs might not lower the interest rate, is because of salary inflation.
So right now you are at advantage working. Houses are flatlining in value due to increased interest rates and you can negotiate better pays with your employer.
Also, please avoid straw men like first time buyers etc. These are not really fitting for the debate and only add load the debate emotionally.
But to take you on your argument: The situation for young working class couples has generally not changed for decades.
(I am Danish, so statistics I know and use are mostly centered around macro dynamics of Denmark, though this is irrelevant for the broader discussion, as the ECB also seeks 2% inflation target)
>>In the current environment, cost inflation is not a problem anymore.
Everyone person who lives paycheck to paycheck, and is barely keeping their head above water as the cost of everything continues to skyrocket disagrees with you.
Good luck telling them that "cost inflation is not a problem anymore".
I can't speak to how things are in Denmark, but without a doubt the situation for young people (especially those looking to rent or buy a house ) HAS changed dramatically for the worse in the USA.
The US is not famous for their redistribution politics especially not the past 30 years.
In Denmark we have numerous policies in place, that ensures that housing stays as housing and does not become a speculative asset - this is good if you want to buy a house the popular places.
Also, remember this is macro dynamics. Yes, houses are more expensive in the bay area. But I bet that housing has comparatively gone down in value in less popular areas.
>>But I bet that housing has comparatively gone down in value in less popular areas.
You would lose that bet.
Other than a few places where the town/city as literally being abandoned (i.e. towns in the middle of nowhere were the last factory has shut down) - home process have gone up everywhere in the last 3-4 years, and pretty dramatically so.
