Considering how crazy expensive accommodations have become the last couple of years, concentrated in the hands of greedy corporations, landlords and how little politicians seem to care about this problem, do you think we will ever experience a real estate market crash that would bring those exorbitant prices back to Earth?

  • @[email protected]English
    2•1 year ago

    Depends if the next pandemic kills 50% of the world’s population.

    It’s all based on supply and demand. There is not enough housing for everyone to have one at a price they can afford. The price depends entirely on what the wealthiest buyers are prepared to pay, or rather what a bank is prepared to lend them. It is nothing to do with how much the land or bricks and mortar are worth.

    The only way you’ll get a price drop is if the amount of properties go up or the demand drops.

    We’ve had long periods of <1% interest rates. We’ve normalised 40 year mortgages. We’ve invented “shared ownership” schemes and “help for first time buyers”. None of this has bought the prices down. It’s done the opposite and blown them into the stratosphere.

    • @[email protected]
      9•1 year ago

      It’s not only supply and demand, on some countries there’s more empty houses than homeless people, rich people and banks rather leave the houses empty than lower rent or price, governments should step in and tax empty houses.