What cracks first, auto lending or houses?

by Nimble_Centipeder

Caption: Eventually, negative cash flow matters. Properties are selling at prices where they need 50% down to break even on PITI. Million dollar houses that can get $3,500/month rents.

calculatedrisk.substack.com/p/real-house-prices-price-to-rent-ratio-020?s=r

Caption: How much is a truck worth when it costs $150 to fill a tank? People buying way more car than they can afford needing 84 months to make it work at 15-20% PTI.

publish.manheim.com/content/dam/consulting/ManCons-qtrly-call-202201.pdf

 

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