Comment by joe_the_user
2 days ago
Yeah, Neither you nor the parent have worked the forces out to describe what's happening now.
What's happening now is the wealth and the middle are buying houses and apartments not for rental income but for appreciation. This motive is what stands in the way of new home building in any given area. This is why rents rise beyond an area can sustain at all - rents are set to maintain the ostensible value of a property - selling an empty property is fine, even encouraged.
The situation is visible everywhere.
There's just no evidence to support this. Appreciation is nowhere near as cost-effective as putting that same money in the stock market.