Interest Rate Hike Threatens To Worsen Kansas City Housing Crisis

Despite a "victory" this week for KC Tenants, the local housing market confronts another tough year. 

But before we get started, we want to highlight an important comment and postscript to this week's KCMO slap fight on the topic of equity and local shelter . . .

"Celebrating the loss of an ordinance that would actually have created 77 affordable housing units -- in an area close to jobs, education and transportation -- as a victory is one reason that the tenants folks are so easily manipulated by the politicians willing to appeal to their sense of grievance."

This sums up the situation PERFECTLY

And now he's a peek at the future . . .


We don't have time to explain economics to everybody but here's a quick peek at the future . . .

People with cash might already be rushing to lock down a home loan before the Fed spikes interest rates officially, if they have good credit they might be able to find something.

Meanwhile . . . 

Even a massive drop in home prices won't help broke-ass locals who couldn't afford anything in the first place.

In essence, some locals are worried about what's tantamount to a housing supply chain crisis.  Rising prices worsened by scarcity of both new homes and qualified buyers.

If some of this doesn't make sense . . . Don't worry, it's not supposed to and we're sure that your real estate agent will offer much more reassuring lies.

To put it as simply as possible . . . 

More than anything else, the American housing market confronts a deflationary downward spiral

To be fair, I'm sure that Prez Biden & company might be able to solve this problem with more free money. 

Or maybe not. 

We're about to find out given that rates could start rising as soon as the 25th. 

To make this crisis even more fun . . . Let's not forget that housing is the bedrock of the American economy and so EVERYBODY has skin in this game.

Read more via news links that mostly contradict each other . . .

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Developing . . .