The Boom in Wealth for Young People

The increase in housing prices is not due to asset speculation, but rather because of supply restrictions like zoning rules. Young homeowners are experiencing a significant rise in wealth, mostly attributed to the surge in housing prices since 2019. However, this increase in wealth from housing is illiquid as selling a home would mean facing higher housing prices elsewhere. While some individuals have seen their wealth grow from stock markets and savings accounts, the substantial portion of the wealth increase is from rising housing prices. This has placed young renters in a tough situation as they do not benefit from the wealth accumulation experienced by young homeowners.