Garys Economics How do we fix the housing crisis?
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Jul 20, 2025 Explore the global housing crisis and why urban areas struggle with affordability. Dive into the idea that housing has become an asset, influenced heavily by wealth inequality. Learn how the rich drive up prices, often overshadowing the needs of everyday people. Discover why simply building more homes might not be a viable solution. The conversation critically examines the urban divide and the urgent need for systemic economic reforms to make housing accessible for all.
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Housing crisis is global asset crisis
- Housing unaffordability is a global issue across almost every major city in the world.
- It reflects a broader global asset price crisis, not a local housing market problem.
Rich people drive asset price surge
- Rich people spend extra money almost exclusively on assets like houses, stocks, and gold.
- This drives up asset prices, including housing, making affordability worse for ordinary people.
Mortgages enable wealthy housing control
- Mortgages allow rich people to effectively own more houses indirectly by lending money to others.
- Increased mortgage sizes mean ordinary buyers take on more debt while the rich accumulate wealth.