so i keep wondering what the main underlying cause for this is, since it seems to be happening much the same throughout the western world... its clearly not just supply and demand for actual housing to live in cos number of ppl vs number of homes seems to stay pretty static as far as ive seen
is it just trpf and financialisation and excess capital with nowhere productive to go, being pushed instead into lower-return non-productive assets? and then forming a self-reinforcing bubble as the prices continue to rise? or is there something else going on?
of course the mainstream answer in australia is always "its chinese people" with zero further thought
Honestly seen this in action in Houston. Californian retirees, investors, and developers snap up real estate as fast as it goes on the market during good years.
Lots of surplus capital and nowhere else to put it. Also, as technology makes the price of other necessities cheaper in the long run, workers can "afford" to have more money sucked up by landlords because they're spending less on food, clothing, etc.
It's the bubble thing. In bourgeois economics language, Interest rates were too low for too long and it meant that it was dumb to buy bonds so investment banks and funds and shit put their money in real estate instead which is nearly as safe but with a much better return.
so i keep wondering what the main underlying cause for this is, since it seems to be happening much the same throughout the western world... its clearly not just supply and demand for actual housing to live in cos number of ppl vs number of homes seems to stay pretty static as far as ive seen
is it just trpf and financialisation and excess capital with nowhere productive to go, being pushed instead into lower-return non-productive assets? and then forming a self-reinforcing bubble as the prices continue to rise? or is there something else going on?
of course the mainstream answer in australia is always "its chinese people" with zero further thought
In the western US it's "the Californians"
Honestly seen this in action in Houston. Californian retirees, investors, and developers snap up real estate as fast as it goes on the market during good years.
Lots of surplus capital and nowhere else to put it. Also, as technology makes the price of other necessities cheaper in the long run, workers can "afford" to have more money sucked up by landlords because they're spending less on food, clothing, etc.
It's the bubble thing. In bourgeois economics language, Interest rates were too low for too long and it meant that it was dumb to buy bonds so investment banks and funds and shit put their money in real estate instead which is nearly as safe but with a much better return.