“Many real estate experts now believe that home ownership will never again yield rewards like those enjoyed in the second half of the 20th century, when houses not only provided shelter but also a plump nest egg.
“The wealth generated by housing in those decades, particularly on the coasts, did more than assure the owners a comfortable retirement. It powered the economy, paying for the education of children and grandchildren, keeping the cruise ships and golf courses full and the restaurants humming.
“More than likely, that era is gone for good.”
Janes Kwak, economist:
The chart above shows simply that that era never existed; housing was flat for a long time, and then there was a bubble. Instead, we had the illusion of an era of housing appreciation, produced mainly by leverage and price illusion. That whole phenomenon was just a transfer of wealth within society.
House prices must go up?
“People think it’s a law of nature.”
We know it’s not. We know now that real demand, (caused by business expansion, household growth, and immigration), plus fake demand (caused by failed home finance regulation, and over-zealous homeownership bias) add up to a triple boom and a quadruple bust.