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Originally Posted by manaboutown
A recently evolving huge factor to consider is the incredible rate of inflation we are now facing. The cost of housing is just one component of it. The prices of homes have risen 20 - 40% in the last year or so in many communities.
One retiring today needs to evaluate whether he has enough to deal with inflation. I will be 80 next month and thankfully still own some commercial rental properties. The rents from the month to month leases on them are up 33% from a year ago. The stock market has been on a what, twelve year bull run, but that can end any day or continue. No one really knows. Interest rates have been held at historic lows for many years and they will likely soon be raised. Savings accounts currently pay next to nothing. There is a lot to consider for one retiring today.
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Much of what you see is not inflation but the simple law of supply and demand. The demand for housing has increased while the supply has stagnated and therefore the price rises. Any business major can explain it. What you see with the rest is not inflation, it is price gouging because we saved money during Covid and are willing to spend it and companies are trying to make more money than is customary and reasonable.