The “Great Stall” Has Begun
Summary
This BiggerPockets article discusses the current state of the housing market, forecasting a period called the "Great Stall" where home prices stagnate due to affordability issues and rising interest rates. The author suggests hosts consider how these trends may affect their investment strategies, focusing on the potential for various market scenarios, including a crash, a melt-up, or the most likely scenario, the Great Stall.
Key Insights
- •Housing affordability is at its worst in about 40 years, driven by high interest rates, high home prices, and stagnating wages.
- •The article outlines three potential scenarios for the housing market: a crash, a melt-up, or the 'Great Stall,' where prices stagnate.
- •A crash scenario is possible if affordability stays low, unemployment increases, and inflation rises.
- •The most likely scenario according to the article is the "Great Stall," where prices stagnate for multiple years.
Action Items
- ✓Consider how the possible housing market scenarios (crash, melt-up, or stall) could affect your investment strategy as an STR host, and make decisions based on what is happening in the larger housing market.Effort: lowImpact: medium
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