My mental model is that there's too much wealth sloshing around for "large incomes" to make too much difference.
High income is like delta-v, it's great. But you're still near the ground, and you're competing against people already in high orbit.
The beneficiaries of the housing explosion have equity which they can parlay into more ownership, whether for themselves as investments or their children.
Record low interest rates help prices by letting people lever up (letting them spend their lifetime earnings now) to compete but of course also bids up prices, again to the benefit of existing homeowners.
Furthermore, in the UK, Australia and NZ (less familiar with the US or Canada) it seems the government will move heaven and earth to prop up housing.
High immigration rates and supply restriction have not been helping.
I'm not as convinced as GP that the situation can last "forever", but I could see it lasting for another couple of decades. A true housing collapse would probably be a phyrric victory for the young.
High income is like delta-v, it's great. But you're still near the ground, and you're competing against people already in high orbit.
The beneficiaries of the housing explosion have equity which they can parlay into more ownership, whether for themselves as investments or their children.
Record low interest rates help prices by letting people lever up (letting them spend their lifetime earnings now) to compete but of course also bids up prices, again to the benefit of existing homeowners.
This is reflected in the fact that (for example) in the U.K over 1/3 of first time buyers did it by getting money from their parents: https://www.gov.uk/government/news/first-time-buyers-relying...
Furthermore, in the UK, Australia and NZ (less familiar with the US or Canada) it seems the government will move heaven and earth to prop up housing.
High immigration rates and supply restriction have not been helping.
I'm not as convinced as GP that the situation can last "forever", but I could see it lasting for another couple of decades. A true housing collapse would probably be a phyrric victory for the young.