We had women entering the workforce en-masse, and Baby Boomers entering their peak buying years during the 70s and 80s. I think these things had far more to do with inflation than [insert whatever other choice] did. If not for those rising rates, we probably would have seen much higher asset price inflation than we did during that time.[/quote]
Yes, and for the past few years the number of new housing units (adjusted for demolitions) has been running at about 20% of the long-term trend, which was not the case in the 70s and 80s. My point is not that you’re wrong but that if you’re going to compare periods you have to look at both supply and demand. While existing supply is very high right now, that won’t be the case in a few years because there’s so new little new supply coming online. We can each trot out reasons that support our argument – that’s what makes a market.
