This article points out one of the real problems of current housing booms. Affordable housing is destroyed meaning that people that actually help run a city like firemen, police and teachers are priced out the market. This results in a decreased standard of living for everyone in the city.
"What are the reasons?
There is more true wealth than ever before, and it's loaded with dollars for speculation.
The volatility of the stock market has shifted attention into real estate.
Long-term interest rate mortgages have remained very low despite the Fed's hike in short-term interest rates, and banks have a lot of surplus to lend for purchase or re-financing.
The rise of demand for vacation and retirement housing, so people want to own more than one home or condo.
The major reason is the amount of speculation burdening marketplaces with condos and homes sold to non-users, who are just game-players."
Too much speculation investment.
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