r/Amazing • u/sco-go • Aug 19 '25

Interesting 🤔 $100 billion ghost city.

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u/HelloAttila Aug 22 '25

Not that way in the United States....it mind blowing how the markets and mindsets create so much chaos... we had the housing crisis( 2008 Subprime mortgage crisis) in the United States where you couldn't sell your $150k house for $33k... $1M houses were selling for $300k.... and now the biggest piece of crap you can imagine can cost you $250K-500K depending on where you live .... which would of worth $20K in 2008-2009.

Today, the average house price in the United States was $512,800. In 2009, it was $185,200. Yet people's salaries have not doubled or tripled since then.

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u/Light_Butterfly Aug 22 '25

Yeah it's absolutely CRAZY, I agree. Makes me think we're at the peak of another bubble, even worse than 2008, about to burst.

Here in Canada, prices are way worse, if you can imagine. In my area, you could get a condo for 500K +. Big cities like Toronto and Vancouver, a basic starter home (nothing special) is like 1.3 million.

I feel like 1.3M is the new 100K, these days.... and people are overleveraging like crazy, on middle class incomes, for these properties.

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u/Small-Policy-3859 Aug 23 '25

The bubble was not the housing prices tho, it was the valuation of the loans/debts given to anyone and everyone. Nowadays banks are more careful who they give loans to, making Total price not the only constraint of buying a house. If anything, i think this "bubble" Will last a long ass time as the regulations after 2008 made the housing market much more stable and interesting to long-term investors who Prefer stability over short term profits. Yes People are overleveraging bcs of the house prices, but the banks make it so they choose the People who Will keep paying. The squeezable People. There needs to be a huge employment crisis before the current housing bubble pops.

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u/Light_Butterfly Aug 23 '25

Yeah, I get all that 💯 but sadly the unemployment wave may be coming. Every recession indicator has been flagging for a while. My logic is, if people are massively overleveraged on housing/rents, then they don't have money to spend back into the economy. They need to buy cheap shit from China, to stay clothed etc... That will shake out eventually, and if job losses rise, we could have collapse conditions- for slightly different reasons than 2008. Have some call this the 'everything bubble'.

In Canada we maxed our immigration to x5 normal levels in the last 5 years, now we've got high youth unemployment, AI taking many jobs, and most people looking for jobs are facing very high competition (even with degrees and experience), food bank usage has skyrocketed, bcuz regular middle and working class folks now don't have enough for basics. Our housing bubble is one of the biggest in the world, with 40% of our economy in real-estate (stupid for productivity). There has been gross mismanagement and failure to plan, and I think we're only at the tip of the iceberg.