The prices will only continue up (compared to general inflation) over the decades unless laws are passed and enforced to actively decommodify housing ie building massive amounts of free, high quality public housing or making landlording illegal in some way. Capitalists are incentivized to push everyone to rent at the maximum price renters can afford. They’re disincentivized from selling their passive income properties. So, yeah, nothing will just “naturally” change. It will take purposeful, forced action to cause change
Rising asset prices (housing, stocks) are a function of inequality. They’re increasingly decoupled from things like interest rates and inflation because there’s so much wealth at the top that all the demand is for assets, not goods and services. And that’s a self-perpetuating cycle that has already snowballed significantly, because rising asset prices only benefit the very wealthy who can afford to hold assets they don’t need, while impoverishing everyone else.
So you need to decommodify housing. Limit asset acquisition by the capital class. And do really aggressive taxation to start to close the inequality gap.
The prices will only continue up (compared to general inflation) over the decades unless laws are passed and enforced to actively decommodify housing ie building massive amounts of free, high quality public housing or making landlording illegal in some way. Capitalists are incentivized to push everyone to rent at the maximum price renters can afford. They’re disincentivized from selling their passive income properties. So, yeah, nothing will just “naturally” change. It will take purposeful, forced action to cause change
Exactly.
Rising asset prices (housing, stocks) are a function of inequality. They’re increasingly decoupled from things like interest rates and inflation because there’s so much wealth at the top that all the demand is for assets, not goods and services. And that’s a self-perpetuating cycle that has already snowballed significantly, because rising asset prices only benefit the very wealthy who can afford to hold assets they don’t need, while impoverishing everyone else.
So you need to decommodify housing. Limit asset acquisition by the capital class. And do really aggressive taxation to start to close the inequality gap.