The REAL sickness only kicked in about 6 years ago when no down payment AND lying about income and assets was possible..yes,it’s that recent.
In the 1960’s nobody in their right mind had anything other than lower end rentals. “Bread and Butter units” 2BR-1BA maybe 3Br-2Ba, but certainly not high end homes as rentals. It was NOT a major topic of discussion. (Nor was the stock market)
In the late 80’s many houses were available to buy at 100x monthly gross rent. Assumable financing was easily available on many loans. (Take over someone’s existing loan wit almost no qualifying)
Certain areas were always “higher end” with virtually no rentals…
An interesting book is THE COMING REAL ESTATE CRASH by John English & Gray Cardiff,,,written in 1979..
In nominal dollars houses have gone up. In many parts of the country, houses have been a very poor investment. Debt and leverage are key in an inflationary period. Owning property with no debt may not even keep up with inflation in many areas.
Manipulation from the govt and propaganda from the real estate machines have promoted the circus atmosphere.
Bubble markets like SD are the exception, not the rule. Many people got lucky many others haven’t been so lucky.
It’s still possible to buy rental property that makes sense with today’s numbers in almost every state in the nation. Expecting and factoring in ANY appreciation is a huge mistake. It should be a bonus, not an expectation.
