The cost of living is going up and the chance of living is going down.
Sentiment: NEGATIVE
When more land is locked up by the federal government, real people suffer, and opportunities for future prosperity are reduced.
Rent and the cost of essentials like food and child care are rising so fast that wages are not keeping up.
Economies are risky. Some industries rise, and others implode, like housing. Some places get richer, and others drop, like Atlantic City. Some people get new jobs that pay better, many lose their jobs or their wages.
If there are healthy - and growing - numbers of people working and paying taxes, we are better able to pay the costs of people living longer.
You know, when the cost of capital goes down, when credit becomes cheap, people start taking greater and greater risks.
If large numbers of people believe they have no shot at a better life in the future, they will work less hard and generate fewer new ideas and businesses. The economy, as a whole, will be poorer.
And so the danger for the housing industry is if we see interest rates rise.
A home is a home, and excess supply leads to prices falling.
If the economy grows, housing gets better, quicker.
A study of the history of wages back through the years indicates clearly that when the cost-of-living rises appreciably wages have shortly been adjusted upward also.