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CHF

13 Cities Where Millennials Can't Afford A Home

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http://www.reddit.com/r/dataisbeautiful/comments/390xns/the_13_cities_where_millennials_cant_afford_to/

The original article is in the link but I thought it was interesting the comments it produced. Just like reading HPC except they use $

They even have rich chinese buying up all the property and temporally fortunate property millionaires who think their the next Warren Buffet

Edited by CHF

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Yep - UK, US, Canada, Australia - we're all in the same boat right now.

Here's an article from Mish last week about the US situation - replace the $ for £ and he could be writing about the UK:

http://globaleconomicanalysis.blogspot.co.uk/2015/06/new-housing-crisis-in-making-if-so.html


Housing Crisis Past and Present

The 2015 housing crisis was caused the same way as the one in 2007: Interference by the Fed, by Congress, by local officials wanting to create affordable housing.

Terwilliger wants a combination of affordable housing and affordable renting. Lovely.

Driving up home ownership rates is guaranteed to do one thing: drive up prices.

Fannie Mae, Freddie Mac, and hundreds of other government programs culminating with president Bush's "Ownership Society" all contributed to make housing unaffordable.

The government has no business promoting one form of living over another.

Self-Correcting Problem

Terwilliger ends with the question "If renters can’t ever become homeowners, who will buy those homes when today’s homeowners need to sell?"

The answer should be obvious: Prices will fall until there is a pool of buyers!

In the wake of the great financial crisis, home prices actually fell to the point of being affordable. Few seemed happy with the result. The Fed wanted to prevent deflation and in the greatest financial experiment in history unleashed round after round of QE.

Asset prices recovered, but wages didn't. As a result, homes are once again unaffordable.

Does Terwilliger want affordable housing or not?

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What I would like to know is, can rich people in America or the rest of the world looking for a home for their cash or borrowed money buy property in China?

Maybe countries are encouraging overseas investment or the exporting of land and buildings, that helps to drive prices up...free country.

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http://www.reddit.com/r/dataisbeautiful/comments/390xns/the_13_cities_where_millennials_cant_afford_to/

The original article is in the link but I thought it was interesting the comments it produced. Just like reading HPC except they use $

They even have rich chinese buying up all the property and temporally fortunate property millionaires who think their the next Warren Buffet

Interesting to see quite a bit in those comments about Cambridge, Mass. since my sister lives there. I knew it was very expensive by U.S. standards but hadn't realised it had gone up so much lately, much like London.

As for the likes of Melbourne and Vancouver, I know personally of people who are priced out of those, and have been for some time. Melbourne has been a hot spot for Chinese investors for quite a while, according to our local source. He was one of those planning to downsize from a nice family home, but that isn't going to happen since priced-out daughter and her husband and 2 little kids moved in with them a while ago and the arrangement seems to suit them all.

Edited by Mrs Bear

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