On: Lumber crash leads to 'blowout' sales as prices cr...

[ryan93]

I think people have just increased the fraction of their income they are willing to spend. If people in Austin will spend 50% of income instead of a third prices can go up a lot

[Bombthecat → ryan93]

Yes, this.

There was a question why people want to move to Munich even though it is the most expensive city in germany.

Answer : because it is a city! Disco, cinema, stuff to do in your free time.

And more and more people are willing to sacrifice 2/3 (or more) of their income just to live in the city. (also part of the first question)

So, i dont see rent going down anytime soon.

And if there will be a recession, even more people are willing to sacrifice everything, just to move to the city.

[tayo42 → ryan93]

People over spending is the only thing that makes sense

[itsoktocry → ryan93]

>If people in Austin will spend 50% of income instead of a third prices can go up a lot

Exactly this. Somewhere along the lines in the past decade or so, it became completely normal to lend people 10x their income to buy a home, when historically that figure was 3.5x.