Just so we’re all on the same page, I’m just pointing out what I’ve noticed in my area and the surrounding areas, and what my folks have noticed in their area.
The housing market is insane. Houses are being sold for hundreds of thousands of dollars more than what they’re actually worth. There’s a house in my folks’ neighborhood valued at just over $1MM that sold for $3MM. Rent in my city has more than doubled in the past two years. Rent pretty much everywhere has increased significantly. Just for fun, I looked up the number of apartments currently on Zillow that are affordable (with the criteria that they can be rented on a salary of $29k or less, they aren’t scams, and they aren’t just a room in someone’s house). Less than 400 apartments in the entire US, and that’s counting areas like Detroit and rural West Virginia. The price of land is way up, the price of lumber and building supplies are way up, it kinda seems impossible to rent or buy anything right now.
Used vehicles are appreciating in value. This is the first time I’ve ever seen someone drive a car off the lot and have its value go up and not immediately down.
Jobs outside fast food are incredibly difficult to come by. I’m in a specialized field so I’m having slightly more luck than most, but every day I see another news article about how everyone’s hiring but nobody wants to work, but the only places I ever see actually hiring are places like Dollar General and fast-food restaurants.
I assume it has to do at least partially with the pandemic, but I also assume there’s more to it than that behind the scenes. Is this a bubble? Most sources I’ve seen say no, but there’s no way any of this is sustainable. If everyone’s working at McDonalds and can’t afford rent or groceries, how are people supposed to get money back into the economy?
Does this just happen sometimes, and then the market corrects itself, or is this looking like the norm from here on out?