No, it's housing. Housing is expensive b/c there is no supply, and you can't fix a supply side problem by putting more money on the demand side: that just enables people to bid higher than they already are, and the people selling what scant supply exists will pocket the additional cash. The same amount of people that today are below the point where supply meets demand will remain below it.
It’s a rather abstract view of making money. Other houses also go up in value. You only make money from the difference between how much houses in your area are going up, and how much houses in the area you want to move to are going up. And that difference may well be negative.
It’s housing that’s the anomaly there though, not SWE salaries.
It is both IMO.
No, it's housing. Housing is expensive b/c there is no supply, and you can't fix a supply side problem by putting more money on the demand side: that just enables people to bid higher than they already are, and the people selling what scant supply exists will pocket the additional cash. The same amount of people that today are below the point where supply meets demand will remain below it.
SWE salaries are anomalously high whereas they would need to be anomalously low to fit in to the parent up-thread's comment.
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How do you make money from owning and living in a house?
It goes up in value. Also interests rates decreasing means more immediate money in lower living costs.
It’s a rather abstract view of making money. Other houses also go up in value. You only make money from the difference between how much houses in your area are going up, and how much houses in the area you want to move to are going up. And that difference may well be negative.
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You can't pay for groceries with those unrealized gains. You'd have to sell your house. Wait, where will you live?
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* by ensuring that others pay more in property taxes
* by ensuring that others cannot build, increasing value of your investment
* by leveraging the deduction for mortgage interest
The system is working as designed.
Buy a house, live in it, sell it for more than you bought it for