- July 10, 2021
- Posted by: Stratford Team
- Category: Business
The news is filled with talk of real estate. Bubbles have that effect. We know through the work of people like Robert Shiller and others that “narratives” are indeed economic forces and that compelling narratives can move markets.
In the U.S. real estate market, matters are of course more complex than mere narratives, but we do all know that constant hype adds to the buoyancy of markets, which then creates more hype. These virtuous loops are common in a variety of areas of the economy and real estate is no exception.
A lot is at stake. The U.S. residential real estate market is valued at about $40 trillion in aggregate. Real estate/housing is the bellwether for the entire economy and houses represent the typical family’s most important financial decision. So much of life radiates from both the location and the valuation of the house a family occupies.
This twin importance — on both the macro and the personal…