Real Estate Market: Disruption Approaches

The chaos that has ensued because of bailout policies and corporatism has approached spiritual levels in the real estate market. Some may view this situation as a market that is red hot. Yet, things are not what they appear to be. Aside from what major media outlets report all things are not great for the average person.

If you look closely at the market you will realize that the free market mechanism has been perverted by a few. Endless supply of cheap/free credit given to chosen entities has created a moral hazard for the entire real estate market. And these entities are buying every bit of inventory they can get their hands on.

Of course brokers and professionals really don’t care since they get their commission. To them the market is hot. Yet, is it sustainable? The answer is no. Someday very soon there will be a reckoning like no other.

You see the average person who works and saves for their families are getting priced out. It’s really hard to compete with entities who have access to unlimited credit. It’s akin to the bank buying up the monopoly board. And this is happening daily all over America.

So simple lack of supply drives up the demand and price. Yet, this demand is not real but artificial. If someone really wanted to look deeper into these buys you would find the truth. And eventually some smart journalist will.

Sadly, many people are getting priced out. This includes the eviction moratorium driving rents even higher. And ultimately the people are the ones who have to deal with the consequences. So while the State has wasted trillions on wars/bridges it’s own citizenry will become homeless.

Aside from the monetary system which is the source of most human suffering real estate is in desperate need of disruption. Much of what I have witnessed concerning the quote “American dream” is just that. A dream that now has turned into a nightmare. Everyone needs shelter.

Yet, can this tale of financial avarice be fixed? I believe it can. But it will take the continued advancement in technology to fix it. It will also take many of these individuals to realize that lowering the price for the average person is what is required. A 3d printed house should not cost the same as a stick built home.

I have witnessed houses being printed in China for $10,000. Yet, in America our builders want to gouge their brethren. Now many wonder why China has gutted our manufacturing base. Greed has a funny way of turning on even the smartest of us.

And this is an issue that is not going away any time soon. When the average person realizes that the game is rigged then all bets are off. When a husband and wife realize that saving for that down payment backfires due to Blackrock’s greed you will have a crises of confidence. Many are discovering that the legacy system rules that once applied no longer exist.

The key again to this issue is lower cost housing. Not Govt guaranteed housing or billions thrown at overpriced structures. But advanced manufactured structures that are cheap and affordable. In turn the debt burden of a mortgage can basically be nullified.

Real estate is such a prime area for disruption. Yet, again this greed mindset and speculative fervor has caused many to lose sight on what’s important. Home ownership is an important part of life for most families. But instead of helping many are caught into seeing who they can gouge the most.

A final lesson will be taught on the dangers of greed. Much of the real estate market has become one giant moral hazard. At it’s core is the fiat legacy system. But there is hope on the horizon.

A great disruption is fast approaching. Technology can change this circumstance. But we must get our priorities straight. The game is no fun when one player owns the entire monopoly board.

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