Housing boom goes global

Thursday 28 October 2004

For the first time a house price and spending boom is international - affecting New Zealand, Australia, the United States, Britain, Spain and other European countries at the same time.

By The Landlord

Household debt levels are much higher than in the past and house prices are high compared with incomes - arguably more overvalued in many countries than ever before.

The Economist magazine recently argued that US consumer spending was driven by high home prices rather than higher incomes, but some of that wealth was simply "phoney".

Higher house prices did not mean an increase in productive resources - allowing Americans to earn and spend more.

And homes are a big part of living costs.

The "wealthier" home owners would be offset by "poorer" home buyers or renters struggling to save more to buy a home.

"Society is no better off," The Economist says.

Read More - Opens in a new window
Commenting is closed

Property News

Major industrial development powers on

It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.


Resilience needed in face of change

The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.


Mortgage lending slumps to record low in April

Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.

Site by PHP Developer