The link between the birth rate collapse and a potential real estate "demand cliff" is a sobering perspective. Do you think the housing market will be forced into a massive structural "reset" to accommodate these missing generations, or will institutional investors simply keep prices high by shifting us toward a permanent "renter society"?
I’ve subscribed and would be happy to support each other. :)
I firmly believe the housing market will forced into a massive structural reset.
For the renters, with increase of property taxes, the landlord passthrough it to the renter where they have to pay an increase rent. Long term, this is deflationary because this causes demand for rents to collapse, so it is a doom loop.
And since we are in a debt based monetary system, for credit to grow, you need your population to grow, and without population growth, there’s less credit growth, less credit growth means less money is being exchanged hands, less money is buying goods and services, less money goes into assets.
Basically, stagnant growth, means stagnant wages, and well, that’s how the last decade happens.
But I thank you from the bottom of my heart from subscribing! Will be supporting your work in the future
The link between the birth rate collapse and a potential real estate "demand cliff" is a sobering perspective. Do you think the housing market will be forced into a massive structural "reset" to accommodate these missing generations, or will institutional investors simply keep prices high by shifting us toward a permanent "renter society"?
I’ve subscribed and would be happy to support each other. :)
Jorrit
I firmly believe the housing market will forced into a massive structural reset.
For the renters, with increase of property taxes, the landlord passthrough it to the renter where they have to pay an increase rent. Long term, this is deflationary because this causes demand for rents to collapse, so it is a doom loop.
And since we are in a debt based monetary system, for credit to grow, you need your population to grow, and without population growth, there’s less credit growth, less credit growth means less money is being exchanged hands, less money is buying goods and services, less money goes into assets.
Basically, stagnant growth, means stagnant wages, and well, that’s how the last decade happens.
But I thank you from the bottom of my heart from subscribing! Will be supporting your work in the future