3 ms·
Is there any empirical evidence that rent as a fraction of GDP, grows? That could happen in case of quick economic growth combined with a lack of major inventio
by anovikov 7y ago
Is there any empirical evidence that rent as a fraction of GDP, grows? That could happen in case of quick economic growth combined with a lack of major inventions (people get more money but struggle to find what to spend it on - they already have all newest stuff and newer one is slow to get invented - so keep a lot of free cash -> rent grows). But these times aren't like that.
So i tend to believe these observations are largely made up. There is no "squeeze" in the sense that economy-wide, cyclically adjusted, rents do not grow faster than GDP per capita does.
- imtringued 7y agoThat's not a very useful observation. Rents decrease in areas without jobs. Incomes increase in areas with jobs. Therefore country wide rent grows slower than GPD per capita as more people moveto the cities.