Garys Economics Why is housing so expensive?
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Aug 1, 2021 Housing prices are skyrocketing across major cities, outpacing wages. This global trend is fueled by asset inflation from the 2008 financial crisis and growing wealth inequality, which drives investment into housing. Central banks' money printing has further intensified these price hikes. The situation leaves young families struggling while wealthy property owners thrive. To tackle this crisis, the discussion emphasizes implementing wealth taxes on the super-rich as a potential solution to combat rising unaffordability.
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Housing Cost Is A Global Phenomenon
- Housing is expensive globally, not just due to local planning rules.
- Major cities worldwide have seen house prices climb together over recent decades.
Global Conversations Shaped His View
- Gary describes hearing the same local planning blame from people in Sydney, New York, Tokyo and more.
- That repeated experience shaped his view that the problem is global rather than local.
Asset Boom Driven By Concentrated Wealth
- Asset prices broadly surged after the financial crisis, not only housing.
- Wealth concentration among the very rich shifted purchasing power toward assets and away from wages and consumption.