Re:Why is rent skyrocketing?
by mytailorisrich on Tuesday August 23, 2022 @03:12PM
(#32569811)
There is no problem with property being an investment.
Prices are constrained by people's incomes and over the 20th century incomes have grown faster than inflation (people have got richer). This leaves space for positive returns without necessarily hurting affordability.
Now, in many places construction has slowed a lot and capital is cheap, which is really what has caused prices to skyrocket.
Eventually, incomes will still constrain the market, though, especially in lettings.
Prices are constrained by people's incomes and over the 20th century incomes have grown faster than inflation (people have got richer). This leaves space for positive returns without necessarily hurting affordability.
Now, in many places construction has slowed a lot and capital is cheap, which is really what has caused prices to skyrocket.
Eventually, incomes will still constrain the market, though, especially in lettings.