The Suburban Real Estate Market Is Toast

The mean price of housing continues almost level, while people are knocking off $10s, sometimes 100s of thousands of dollars to sell their houses. If you look at one indicator, the housing market is doing well in this higher interest rate market, if you look at other indicators, the housing market is DOOMED and never coming back.

And i don't mean doomed as in the 2008 crash, i mean, DOOMED as in acres of suburban houses will be left abandoned.

I would tell everyone to sell their suburban real estate, but it is not that easy. There is no easy way out. Selling and putting the money in the bank will just mean you lose it in the bank closures. (after paying taxes on it.) You can't really sell in one area and buy in another, because this will be an all around the world thing.

Selling it all, and buying homestead worthy land is a good idea, but you will still feel like you lost lots of money.
Moving the money into cryptos will not be an easy move. But i would suggest doing it if you can.

And, while we are moving into this suburb-less future, you still need a place to live.

The Automobile Slum Does Not Support Life

The suburbs exist because manufacturing jobs were in the city.
And because there were jobs, there were supporting industries and their jobs.
So there was money, and that brought stores and service industries and their jobs.

It is all gone. And the construction of everything around the automobile will make the suburbs unsaveable.

Almost all the manufacturing has gone to Mexico / China. The thing that built the city, that supported the city, is gone.
The supporting industries have been slowly leaving / disappearing. (or consolidating on-line)

Now the stores are going online. Amazon and Covaids have destroyed the malls. Even the big stores that sell stuff, that women like to shop for, are closing.

Work from home is a thing now, (never to go away) and so there will be all kinds of commercial buildings left abandoned.

So, there will be nothing left in cities soon. Nothing but pain, gangs, crime and hunger.

Never bet against Demographics

The developed world has births way below replacement levels.
One of the reasons for the mass immigration was to keep levels up. (but they were mostly men) However, soon, they will be running south.

With less people, we need less housing. So much less. We will go from one day trying to build more and more houses, to the next not having any buyers, not having any people that need a house.

Our growing suburbs was a down stream effect of a growing population. Now, the demographics have changed.

The boomers will soon leave their houses empty. That is 25% of the houses just dumped on the market over the next decade. That in itself would destroy any market, but that isn't all.

• Boomers will be leaving
• All Causes Mortality (the VAXXXed) is still rising. Some people (who say they are in the know) say that most will die about 5 years after taking the clot shot. If so, we will see a huge amount of empty houses.
• Foreclosures are happening, and picking up pace. And these houses will be dumped back on the market at some time.
• People are moving out of the cities.
• Crime rising
• And now, commercial buildings to be refitted to be apartments.

The supply of houses for sale will be 25%, then 50%, then more. This means there won't be a market for suburban houses. You can't sell a home when everyone already has a home.

And, you really can't sell a home when everyone just squats in any available place they find. This will start becoming the norm in leftist cities, it has already started.

The Ramifications of "White Flight"

It really isn't "white flight" it is really the intelligent, the capable, the wealthy, the actual workers, the non-parasites who leave. And without them, there is nothing left. And it is only a matter of time before the place comes crashing down.

A better term is "Brain Drain". A person of the highest abilities does not have to limit themselves to one local, they can go almost anywhere in the world and get a job. And when all the people of high ability leave, there is nothing left to support the community.

This has been happening for a while, out of blue-cities. The blue-cities hate the companies that actually build things. So, they are all leaving. Tesla moving from California to Texas is one big name example. There are hundreds, maybe thousands more.

With decentralized manufacturing coming (like 3D printer businesses), people will move out of the cities into the country. So, the drain from cities will be even greater.

Then there will be the food issues. Where cities become places where it is too dangerous to have an open grocery store. Where cities become a place where truckers do not want to deliver because it is too dangerous. NY is already boycotted by many truck drivers.

Basically, anyone who can leave, will leave. They are already leaving.
These cities they are leaving will soon be ghettos, or worse.

House pricing does not go up in a ghetto.

All the expensive real estate in the expensive cities will go to zero.

It is coming. It is already baked in the cake. The people who are thinking of buying a house were born at least 18 years ago.

It will become apparent as the bodies start piling up. Of course, at that point, we will probably be past the point where you could sell suburban real estate.

Houses should have already moved down 50% because of the increase in interest rates, however the real estate market is slow. And, people who do not price their houses low enough will never sell them. The little cuts i am seeing all over Zillo, are not selling the houses. In fact, most open houses aren't getting any lookers. (RE agents reporting)

If you want to sell your house in this market, plan to make BIG cuts in price before listing it.
And, that still might not be enough.

So, most RE investors have their houses mortgaged, and the banks can't take more than the house, so they will ride this thing into the scene of the crash. There is no good exit point.

I feel we are already past the point where you can easily get out of real estate position. I am just telling people what is coming so they have a heads up.

All images in this post are my own original creations.