Unlike 2004-2008, I knew people who were buying multiple homes to flip every few months/years back then. All they wanted was the capital appreciation of a sale and it wasn’t about cash flowing or anything since they did interest only loans, ninja loans and in 6 months or a year, sell and multiply the game with 3 houses vs. 1.
They eventually loss all the homes of course. This kept rents low, but house prices high so that was why the bubble was then and not now IMO. Rent vs own/buy was out of whack back then.
Rents now are insane and like the person who is in escrow who was paying 1k/rent, if you had a 4k/month rent, you wouldn’t think it’s as risky when your rent maybe even MORE than your mortgage…even when not taking any tax benefits into account.
I see plenty of people in my hood paying 4k/month rents now so with rents so high, buying isn’t as risky unless you really don’t plan to stay long.
Everyone who bought in 2008-2011 are probably sitting on close to 50% equity and paying even less after a refi now.
TR:DR: No bubble, all are complaints that housing is too high (which it is, but rents are too high too)…
You would need a major economic collapse or some other event for it to drop materially (meaning 25+% drop).
