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Is a Housing Crash Coming?

Money For the Rest of Us

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Home Price Crash - A Supply Shock

Inflation measures the cost of living by asking home owners what they would rent their house for. But if we look at owner's equivalent rent over the past year, it's only increase two point four %. So in conclusion, that when we think about a potential crash in home prices, we would need a supply shock. We need builders to build dramatically more houses than they're currently building or the market needs to be flooded with more homes.

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