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A comment on A Growing Problem in Real Estate: Too Many Too Big Houses. Parent comment

Re:A Growing Problem in Real Estate: Too Many Too Big Houses by Balgair on Thursday June 20, 2019 @04:58PM (#20237305)
With the lack of 'wealth' that many Millenials are experiencing, it's not only real estate that is going to be affected. Stocks and other areas are also going to feel the effects. Strangely, it's not a lack of supply that will be the issue here, it's a lack of buyers. Millenials just don't have the cash to pay the Boomers for the houses and stocks they accumulated and the Banks can only buy and sell the properties to each other for so long, collecting fees each time they hand off. Though we're in a good job market right now, we're still not seeing any real rise in wages.

EDIT: As an example of the Banks buying up houses: https://www.nytimes.com/interactive/2019/06/20/business/econ...

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Re:A Growing Problem in Real Estate: Too Many Too Big Houses by jtolmar on Thursday June 20, 2019 @06:00PM (#20237817)
Concentration of wealth won't cause a lack of buyers for stocks. The wealth is still there, the very wealthy will just buy more stock. The value of a stock stacks in a way that the value of additional giant houses doesn't.

(Being able to buy ownership of a business, via stock or other means, is why wealth is concentrating in the first place.)

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Re:A Growing Problem in Real Estate: Too Many Too Big Houses by Balgair on Thursday June 20, 2019 @06:09PM (#20237895)
Yes, of course.

But you start getting into monopsony then. The people that you sell to are hyper rich and may pay a fair price, but there are a lot less people overall and their tastes aren't distributed like the general population. It's not the same market at all.

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