To understand house prices rising in a troubled economy -
A huge amount of purchases are via 'private equity', i.e., billionaires and such using 'investment' funds to buy up property, all-cash quick purchases ... this fuelling price increases, and pricing lower middle and working classes out of the market
The majority of house purchases may be like this, in the longer term few actual 'people' will own homes
Re the UK this is from 2021 but the trend applies today -
"Analysts at investment bank Berenberg recently identified that more than three-quarters of the UK real estate deals struck or mooted in 2021 have involved private equity" https://gunnercooke.com/safe-as-houses-private-equitys-growing-interest-in-uk-property/
And then there are millions of migrants arriving, needing housing, and yet there are few programmes to build housing for these millions, adding to price pressures
Young people without family money, or without having a job in the top 10% of incomes, are in great difficulty trying to buy a home ... the contract between generations has been broken
To understand house prices rising in a troubled economy -
ReplyDeleteA huge amount of purchases are via 'private equity', i.e., billionaires and such using 'investment' funds to buy up property, all-cash quick purchases ... this fuelling price increases, and pricing lower middle and working classes out of the market
The majority of house purchases may be like this, in the longer term few actual 'people' will own homes
Re the UK this is from 2021 but the trend applies today -
"Analysts at investment bank Berenberg recently identified that more than three-quarters of the UK real estate deals struck or mooted in 2021 have involved private equity"
https://gunnercooke.com/safe-as-houses-private-equitys-growing-interest-in-uk-property/
And then there are millions of migrants arriving, needing housing, and yet there are few programmes to build housing for these millions, adding to price pressures
Young people without family money, or without having a job in the top 10% of incomes, are in great difficulty trying to buy a home ... the contract between generations has been broken