US home prices are soaring so high that people can’t afford to have kids

via businessinsider:

  • There is clearly a housing bubble forming as home prices soar around the US.
  • And a surprising side-effect is accompanying high home prices — declining birth rates.
  • Rising home prices correlate with falling birth rates becuase they crowd out childcare financing.

I’ve been ranting for weeks now about it… People don’t understand that sky-high home prices are bad for countries, cities, businesses, and consumers.

And only the 62% of people who already own homes are feeling the “bliss” of the bubble. They’re the ones who want prices to keep going up so they get something for next to nothing…

There’s another side effect of this housing bubble. We’ve seen it in the bubbliest areas for years…

Birth rates fall when bubbles make it even more unaffordable to raise a child.

Screen Shot 2018 07 10 at 1.59.24 PMEconomy & Markets

Long-term data is crystal clear on this. People who move from rural to urban areas, and become more affluent as a result, have fewer kids. They strive to educate and raise them better as a result.

In rural areas, housing costs are much lower and the kids often help on the farms – even after elementary school, historically speaking.

But in urban areas, the cost of living is much higher – along with real estate prices – making it costlier to raise kids in the city. That cost then increases as they get older, especially if they decide to go to college.