3 ms·
Wouldn't a more straightforward explanation be that increased access to capital amongst homebuyers leads to increased demand?
by r7r7yrddy 6y ago
Wouldn't a more straightforward explanation be that increased access to capital amongst homebuyers leads to increased demand?
- inglor_cz 6y agoAt least here in the Czech Republic the share of people owning their home vs. the share of people renting has not changed dramatically. Low interest prices are likely to spur second home buying among people who already own.
- jddjheh 6y agoIn Poland for example prices are driven by cheaper credit (although offseted by downpaykent change from 0/10% to 20%). Most of it just young ppl moving to towns as old industries are dead/don't need ppl. The pharma company that my parents worked in almost don't have ppl in production anymore - it's all quite automated. Now good jobs are service industry, sales, marketing, software for all you need good education, so university cities are thriving. I myself moved and earn close to $60K which is good money in Poland. It's not upncommon for some parents to just buy kids apartments for $100K (in cash - for US would be $400K). Prices futher rise as owning apparment is much better than renting for anyone who can afford credit. This leds to russian oligarchs moving to property business futher increasing demand and prices. But in Poland we still have PLN not Euro so assuming growing economy properties can raise 4x (denominated in gold).