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Priced out of Paris
- twic 13y agoHmm. Are there really enough 1%ers to drive up rents across the entire city? In city after city? Isn't it more likely that this is simply about migration into global cities, by people of all incomes, exceeding the growth rate of accomodation capacity in those cities? It seems like this phenomenon could be usefully analysed quantitatively. I haven't seen anyone do that yet.
- rdouble 13y agoCould be, because the 1% buy multiple properties in many different cities. There have been articles about how the City of London has neighborhoods of empty luxury apartment developments owned by various sheikhs and russian/central asian commodities oligarchs. In SF when you buy a house you are also competing with dozens of investors from overseas paying cash who don't have any intention of ever living there. I believe that the Vancouver real estate market was also affected by overseas investors in a similar way, making it the least affordable housing market in North America. Multiply this speculative real estate investment by 1% of 7 billion and it could very well be a major factor in pushing up rents, especially in certain super desirable cities like Paris. There's about 1.7 million residences there. Even if only 1% of the 1% want a pied a terre there, the rest of the people trying to live there would feel the squeeze.
- fmstephe 13y agoI think that a lot of the price pressure could be caused by the 0.1%. http://www.guardian.co.uk/society/2009/oct/16/empty-houses-london-wealthy-owners http://www.guardian.co.uk/society/2009/oct/16/empty-houses-l...