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There are more to this than housing becoming an investment tool. I would argue the endless money printing and negative real rate has made saving pretty much use

There are more to this than housing becoming an investment tool. I would argue the endless money printing and negative real rate has made saving pretty much useless. Hard assets are only going to keep going up. And then the government guarantees that housing market should never go down. Here in Canada many politicians have publicly stated they wouldn’t stand housing market going down. And of course they aren’t going to make zoning laws any less stringent. The solution isn’t that hard. Raise the real rate. Let’s see how many people can keep buying their third and fourth homes once the rates go up by 5%. Oh but we can’t have that. That will cause the economy cough cough stock market tank. So we have to keep making the bubble bigger.

seoaeu 5y ago
> politicians have publicly stated they wouldn’t stand housing market going down This statement is equivalent to saying that rents will never go down. And that's the core problem. Fiddling with interest rates or whatever is fine, but if your broader strategy results in every generation having to pay a larger fraction of their income on housing than the previous one, that is a problem...
jbay808 5y ago
> There are more to this than housing becoming an investment tool [...] Hard assets are only going to keep going up. And then the government guarantees that housing market should never go down It's exactly housing becoming an investment. In your post you precisely explain why it's a profitable investment, why that makes it unafordable, and the solution you propose is to make it an unprofitable investment. I think you and the OP agree completely.