If rich people just stashed they money in housing, you would see a higher gap between housing and rental prices (because if there isnt demand to rent those places, but there is demand to buy them, the gap would increase).
I dont think thats whats going on. Concentration of work in cities is a global effect, and although china erupting cash over the world might change some numbers,it wouldnt explain the migratory movement from rural to cities.
The easiest and most classical explanation of housing prices in the US is that construction took a huge hit in 2008, and getting the whole system to produce more housing for the demographic growth is lagging. I remember seeing some data about that happening.
A more esoteric one is that we are living in a world with a curious monetary policy, with low interest rates but no inflation, and that as money gets more expensive, housing demand will lower and so will its prices.
I dont think thats whats going on. Concentration of work in cities is a global effect, and although china erupting cash over the world might change some numbers,it wouldnt explain the migratory movement from rural to cities.
The easiest and most classical explanation of housing prices in the US is that construction took a huge hit in 2008, and getting the whole system to produce more housing for the demographic growth is lagging. I remember seeing some data about that happening.
A more esoteric one is that we are living in a world with a curious monetary policy, with low interest rates but no inflation, and that as money gets more expensive, housing demand will lower and so will its prices.