Here's Why Population Growth Does Not Mean Home Prices Will Eventually Rise

NYU finance professor Ann Lee makes a good point about the long-term housing market, while talking on Bloomberg.

Here’s where the faith in growing the population to bring up prices goes wrong:

“The population growth theory is compelling; however, that would not be true if the population that’s growing does not also have the income to be able to afford housing…. In fact we might see a situation where we look more like Brazil than Europe in that we have denser populations, where people end up living with their families.”

The decline in home-ownership is decades in the coming. Unfortunately, she says, it’s catching up to us now and will drag prices down.

Video below (from Credit Writedowns).

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