IMF: At the root of the current housing affordability crisis: demand far exceeds supply

Interest rates also play a big role.

Homeownership is the biggest source of both debt and wealth. That makes it central to understanding why economies endure boom-and-bust cycles. Yet housing is often missing in macroeconomic analysis. 

High-end real estate often helps hide or launder illicit fortunes, further distorting housing markets and making homeownership a more distant dream for ordinary people.

This issue of Finance & Development details how housing markets and the economy interact, the nature of recent challenges—including the property slump in China (see piece by Kenneth Rogoff and Yuanchen Yang)—and the potential solutions that can make real estate markets work for everyone. 

Gita Bhatt IMF 4 December 2024

https://www.imf.org/en/Blogs/Articles/2024/12/04/housings-unique-role-in-lives-and-economies-demands-greater-understanding

Tillbaka till Rolfs länktips 5 december 2024

https://englundmacro.blogspot.com/2024/12/rolfs-lanktips-5-december-2024.html