The ‘where are people going to live’ is a valid question.. if rents and home prices are up what do you do? Especially if you’re retired and you need to lower your costs..
I challenge people to come up with a better solution for the living needs of this demograph: *dont take my math too literally
60 year old couple with 500,000 in the bank.. no need to commute but would like to be close enough to see children, grandchildren say within 100-200 miles
Rent?
2 bedrooms are now renting at $1500.. can you soak that up? Over 20 years that’s around 400k..
Buy old cheap house?
Interested in doing maintenance on an older house.. what else can you afford? Where are you going to buy? Crappy weather.. I hope you’re well insulated!
Buy Manufactured home?
Spend 60k on a manufactured home.. buy 30k lot in Borrego Springs.. Spend 20k hooking up water, gas, electric.. guess what, you’re done! 110k… Add 50k for whatever else you want.. done at 160k.
Second, the biggest cost of a home is land. Why would anyone buy land now for their manufactured home? I think buyers are on the fence on buying land now.
Maybe in San Diego.. If you paid me enough I’d send you a list of at least 50 places where you can buy the land for less than most people spend on a vehicle.
As asianautica said, each industry has its own PEs. Look at Chevron with a PE of only 6 or 8 (??). Oil is going up, but such a low PE. Car companies have low PEs too. Software companies have much higher PEs.
Sorry but you can’t just say ‘oil is going up’ and have it work… Not that I absolutely disagree, but first nothign is 100% and second if you’re using it as a reason against be fair… What is more important for a person especially a retirees survival, gas or a place to live?
The reason I want to buy these stocks is that I see demand increasing.. just like you claimed that ‘oil is going up’ that gives you the vision to buy energy companies..
We’re not talking about beanie babies here, despite the housing market crashing people are going to need to live somwhere.
