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As a non native speaker, a "housing boom" sounds like a boom in number of houses, not a boom in the price of existing houses :)
by dandare 8y ago
As a non native speaker, a "housing boom" sounds like a boom in number of houses, not a boom in the price of existing houses :)
- geoffpado 8y agoAs a native speaker, I agree.
- ido 8y agoSwathes of unsold homes in places like Spain and Florida after the last bust suggest it can be both!
- baybal2 8y agoThat's still a far cry from 2.2 billion vacant square metres that China has, enough to rehouse the whole of California.
- nopinsight 8y agoIt sounds enormous until you consider their population size and urbanization rate. At the rate of 0.75% per year, it equals to 10.5 million people a year. Assuming 40 square metres per person, the stock only lasts about 5 years. In addition, real estate is the preferred investment vehicle among the older and on average wealthier segment of the population. "Urbanisation in China increased in speed following the initiation of the reform and opening policy. By the end of 2017, 59.4% of the total population lived in urban areas, a dramatic increase from 26% in 1990." https://en.m.wikipedia.org/wiki/Urbanization_in_China https://en.m.wikipedia.org/wiki/Urbanization_in_China
- yostrovs 8y agoIs the housing stock growing or shrinking or staying the same?
- Latteland 8y agoHow many people can soak up that high priced unused real estate? Not that many. I expect there to eventually be a housing and infrastructure crash in China, but maybe they can absorb it because they are so large.
- nopinsight 8y agoOne also needs to consider saving rate (very high) and mortgage policy to answer that question.
- arbuge 8y agoThe two are closely correlated in practice. The boom in prices incentivizes developers to build more, leading to a boom in number of houses, which eventually leads to a bust. So the pendulum swings again. Control engineers would describe it all as a system that's not very well damped.
- deleted 8y ago[deleted]
- tootahe45 8y ago>leading to a boom in number of houses The requisite for this seems to be little or no govt intervention. In Akl, NZ, for example, you're only seeing high-end homes being built yet prices & demand keeps going up for all housing. Now they're subsidizing projects for entry-level homes as if building a set number of homes (and failing to meet build targets by a long shot)will solve market woes.
- AnthonyMouse 8y agoThere are zero problems with building mostly high-end homes. Then the rich can live there and the less rich can live where the rich previously lived -- win for everybody. One of the best things the government can do in those cases is ensure that large housing developments are still zoned to allow them to be subdivided. Nothing wrong with four families living in one big mansion.
- angmarsbane 8y agoDoes this get thrown off if the rich don’t buy the new high end homes to live in?
- JPKab 8y agoThat doesn't happen in practice.
- AnthonyMouse 8y ago
- Kinnard 8y agoAs a native speaker, a "housing boom" sounds like a boom in the number of houses, not a boom in the price of existing houses :)
- lemoncucumber 8y agoYeah, “housing boom” sounds like increased housing construction whereas “housing bubble” is the term I’m used to for higher prices.