Quote:
Originally Posted by Yoho
What do you think the housing market depends on then? Are you under some illusion that the immigrants coming in are all millionaires to continue to support this housing bubble?
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A combination of immigrants/foreign investors and people who already have money, particularly baby boomers. The housing market is no longer supported by young working families.
Edit: to add to this, as the population grows and the housing stock remains relatively stable, a greater percentage of the bottom earners/net worth become irrelevant to the discussion, as they were never going to be able to afford housing in the first place. For example, if you only have $100k to spend, and the cheapest home is $250k, then you losing your job is irrelevant, as far as the housing market goes. We're at a place now where such a large percentage of the population is already outside of the market, that it would take an astronomical amount of unemployment to shake the market. Even then, that may not cause as drop as investors would probably still continue to scoop up homes, buying in multiples.