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…

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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.

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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.

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