Why this housing boom is different from the last

The attached article comments on how the current housing boom is different from the last one. Even though there are no signs of a total market collapse as experienced in 2007 – 2009, there are some underlying current market conditions that are similar that brought on the last recession: demand for good and services are more driven by debt and increase in wages. Eventually the debt becomes so burdensome that the economy can no longer sustain itself.

Regarding the article itself,, the increasing cost of homeownership is outstripping increases in wages/income. The shortages of labor and supplies along with increasing interest rates is not going to provide the environment to produce sufficient new housing to alleviate inventory shortages. The increase in median prices may be more a reflection of the changing character of the housing inventory (lower “affordable” housing being replaced by higher end houses.) A recent article quoted a homebuilder in Frisco that an “affordable” home starts at $350,000.

https://www.mpamag.com/market-update/why-this-housing-boom-is-different-from-the-last-109857.aspx