If housing values become stagnant or gradually falling, fewer people will use it as a store of value.
Edit: or even if there is a prospect of this being the case.
Re:Just Be Rich
by onethought on Tuesday April 13, 2021 @04:38AM
(#26789656)
Jurisdictions in China have started taxing investment properties on a sliding scale that ramps up a lot the more properties you own.
They have also put heavy restrictions on bank lending.
Basically they are desperately trying to slow/reverse responsibly an out of control housing bubble.
That said they have unique cultural and geographical issues in terms of the sheer scale of their urbanisation
Some countries have wealth tax. Some countries don't.
It's sensible to park your money somewhere, where it's not taxed.
If you build more of it, yes, you will meet some of the housing demand (basically just for the richest), but housing is competing with rich people saving.
You need to tax unproductive behavior to rid of it.