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Price to income ratios have indeed gotten worse in many places. I don't know how widespread that effect is, though. I put it down to a combination of consisten
by repsilat 8y ago
Price to income ratios have indeed gotten worse in many places. I don't know how widespread that effect is, though.
I put it down to a combination of consistently low interest rates (both in the short term and in the long-term trend), coupled with cumulatively worsening construction deficits. Wouldn't be surprised if not all of that withstood comparison with actual data, though.
- CydeWeys 8y agoBut surely this isn't the first time they've gotten worse, right? They've increased many previous times in many previous places throughout history, right? I really don't think there's anything that special about what we're going through right now. I'm sure the Romans were complaining about rising prices in Rome as the city filled up and real estate became scarce.
- user5994461 8y ago>>> But surely this isn't the first time they've gotten worse, right? They've increased many previous times in many previous places throughout history, right? Truth be told. This is the first time in history this happens. There has never been as long a period without war or calamity. Properties were never inflated to the point of being not affordable within multiple decades of income. You were trying to give the 20's as an example. 1920 is just after the war, property had zero value after most of them were destroyed and most tenants are dead. Fast forward less than 20 years and it's world war two, it's all reset again.