The best & worst housing affordability worldwide
This conversation delves into the global housing affordability crisis, examining trends across OECD countries, the impact of foreign investment, and unique case studies from Italy and Japan. The discussion highlights the challenges faced by first-time home buyers, the influence of high interest rates, and the role of population growth in housing markets. The hosts also explore innovative solutions like Italy's one euro house initiative and Japan's abandoned homes, providing insights into potential future trends in real estate.Housing affordability is a pressing global challenge, especially for young people.The US has experienced a significant decline in housing affordability, ranking third worst globally.First-time home buyers in the US are at a historic low, with many unable to enter the market.High interest rates are a major barrier to homeownership, impacting buyer sentiment.Global capital flows are increasing as people seek better economic opportunities.Supply constraints in construction are keeping housing prices elevated in many markets.Italy's one euro house initiative aims to revitalize small towns and combat demographic challenges.Japan faces a unique situation with over 8 million abandoned homes due to strict immigration policies.Housing affordability has improved in Italy, with a 13% decrease in house price to income ratio.The conversation highlights the need for further exploration of innovative housing solutions in different countries.