Ladies and gentlemen, we are in the midst of a full-on undeniable wild and woolly housing boom.

This is in the midst of a recession.

Home prices are absolutely flying. home building is way up, home sales are way up,

average prices are way up, home construction stocks are making record highs.

It's all happening all at once. During the last recession, homeowners

lost a combined 3.3 trillion dollars in home equity value in a single year.

That's 2008. The exact opposite is happening this time.

There are a confluence of factors as to why the housing market is so different

this time than the last time we went through a recession.

The first thing is that the pandemic is weird and you've got this pandemic driven recession

and shelter has become the single most important

consideration in all of our lives. It's literally life or death. Where are you

going to wait this thing out?

Second, the response by people who live in cities

where the virus spreads more rapidly

has been to get the fuck out of town.

You can understand that. The suburbs have never

looked more attractive, which is a very big reversal from the prior trend

where people wanted to be closer to the office have shorter commutes.

They wanted to live in fashionable downtown areas with access to restaurants, nightlife,

ballparks, theaters, etc.

Nobody cares about that stuff at the moment.

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