I recommend you look up “monetary illusion” in any ECON 101 textbook before writing silly replies. The fact we get paid in debased dollars is part of the problem, as our standard of living will surely deteriorate.
If our currency is debased that makes inflation go up, our imports cost more. How does that make the bubble over? That actually makes the situation worse. Affordability comes down and the buyer can afford LESS not MORE house. That puts downward pressure on house prices.
It is NOT Inflation that make current house price levels more acceptable but **INCOME inflation**. If your income stays the same and there is 50% inflation over the next 3 years do you think that 500k house today is going to be more affordable in 3 yrs? I don’t think so!!! Everyone would become paupers and nobody would be able to afford even a shack…at least now we can buy a shack!
So..inflation puts huge downward pressures on housing prices if income doesn’t keep pace with inflation which it insn’t doing of late.
