Comment by missedthecue
1 day ago
It doesn't really mean that because there isn't a forever fixed amount of labor being bidded on by the workforce. That side of the market is also dynamic. As population ages and then shrinks, labor demand will also shrink. If supply and demand shrink in tandem, wages don't increase.
Real estate bubble would pop for simple reason that were would be significantly less people overall.
And much lower real estate prices could amortize a lot of wages shrinking, from labour perspective.
Real estate bubble won't pop with a shrinking population, because shrinking populations retreat to city centers. Spain, Italy, Japan, and Korea are full of $10,000 houses and all of them are overpriced. Meanwhile, Madrid, Rome, Tokyo, and Seoul are, without hyperbole, more expensive than they've ever been.
Japan or Korea are not shrinking that much, but they’re getting older. Give it a couple decades when last bigger generations start vanishing entirely en masse.
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