
Low interest rates, high salaries and membership discounts scored before and during the pandemic often can’t be matched today, binding people in golden handcuffs. Many feel comfortable, but stuck…
In matters big and small, people feel they cannot improve on their current situations. They’re mentally or emotionally ready for a change but can’t bring themselves to walk away.
This is how it can affect housing:
Their findings suggest that people with 3% mortgages today could be about 30% to 40% less likely to move than they otherwise would be, says Lu Liu, an author of the paper and a finance professor at Penn’s Wharton School.
When homeowners don’t move, that limits the number of houses that are bought and sold. And Liu found that those who locked in low mortgage rates are less likely to move in response to wage growth in nearby areas, potentially making the labor market less dynamic.
This all seems related to a basic assumption in the American Dream: life will continue to get better and better. The next generation will have it better than the current one or previous ones. Progress will continue to improve lives and outcomes.
But, what if this does not happen? Does improvement always occur over time?
The American Dream does not allow much space for stagnation or decline. There can be blips, temporary setbacks like a Great Depression or a housing crisis in the late 2000s. Otherwise, housing values should keep going up. The stock market should keep going up. Job opportunities should continue to be there. Standards of living should improve as should technology.
Whether the American Dream has peaked or whether room for improvement is limited because so much improved over the last century or so is interesting to consider. To some degree, we may not know for sure until we can look back and see the broad patterns. But, there are likely plenty of people willing to dig into the data and/or make these arguments.








