So right now, this housing crisis is insane. Luckily we built a house a few years ago for about 1.3 times our current income. But many people are buying houses and it's going to bite them in the butt.

Looking at here in suburbs of Pittsburgh, houses built in the 50s (ranch/splits 1500sq ft) were selling between 130-160 in 2016 and are now selling for 230-260. Those houses in 3-5 years will drop in value because the prices are artificially inflated. Newer homes (built between 05-15) will probably level put with minor drops.

But what happens when you buy this house for 260k with 20% down and you go to move up in home in 2026 and it's worth 180k and you owe 210k still? Because that's the reality of people buying starter homes, once they have a family and outgrow the house they will be under water quite a bit.

Glad I built when I did, we owe 150k on a 15 now 11 year mortgage and the house is worth nearly 300k, 250k in a normal market.