Thursday, Jan 11, 2007
Building less houses = higher prices, really?
Firstrung: Household growth will lead to housing shortage and higher house prices - CIH
If new figures on household growth are accurate, we are heading for a housing shortage and even higher prices unless we build significantly more houses, writes Steve Wilcox, from the University of York, in the latest UK Housing Review 2006/7.
Posted by converted lurker @ 12:41 AM (140 views) Add Comment
5 Comments
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1. Lvmreader said...
In the DotCom boom, this was called Pump and Dump. It became a Federal Offence.
Lawsuits are still ongoing 7 years later
From Kirstie Allsop on down, these people need to be jailed for effectively giving financial advice.
2. Nohpc said...
lvmreader you are kidding aren't you? There is a lot of anti freedom of thought and communist thinking on this site. Jail people like Kirsty Alsiop? Why not jail every celebrity while you are at it?
3. sovietuk said...
Perhaps houses are now just seen as investments and things to buy by the more wealthier stratas of society rather than as places for people to live in by the less fortunate 95%. If there is enough money in this strata coupled with with the amount of extra money now available to wealthy individuals in the other places in the world - BRIC (Brazil, Russia, India, China) and chronic supply deficits in some countries (e.g here) perhaps this explains why house prices have increased so much here. Do income multiples really mean anything more e.g Kiev, nothing available for less than $50,000 dollars (you get little more than a shed literally for this) and yet almost twenty times the average wage- yes we have a long way to go yet.
It's also becoming a similar picture across the eastern in bloc in general. I don't wish to offend, just looking at the picture objectively, demolition comments welcome.
By the way can anybody confirm how house price sales are included in GDP figure calculations in the UK? With the massive house price increases wouldn't the economy in general (excluding housing) be in recession if growth in the economy is only about 2.5%? Sorry I'm not a professional economist - just curious.
4. Rimmer said...
Maybe they should think about building houses for the state to rent out via local authorities, this social accomadation could be called "Council Houses" or Council Accomodation - It all went wrong with Maggie !!!!
5. Amateureconomist said...
Sovietuk,
Keep your level of ignorance private. Better still, read some book!