Or to put it another way, why didnt it happen 20 years ago or 50 years ago or 100 years ago? It seems like the underlying reasons for property being so expensive have been around, well, forever? Landlords accumulate wealth, buy property, use property to generate more wealth, property stock declines and property prices go up? I realise thats a 5 year old’s view of capitolism but i dont have any background in economics. Id love to have it explained in more detail
In: Economics
The world has never been more economically connected than it is now. Mobility of money and people puts pretty much every city of marginally good economic standing in play for the global upper class. Secondarily there is a surge in growth in the global middle class outside of North America and Western Europe.
Passive investment in the stock markets via ETFs and Mutual funds has made the markets historically less volatile so the investment firms have moved a lot of capital into residential real estate.
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