Up Sucker Creek

Up Sucker Creek
Photo Courtesy of the Lake Oswego Library

Thursday, September 24, 2015

House prices lead the way to wealth

Owning a home has always been a chief means of wealth creation, but never more so than today where urban growth containment has limited the supply of land and raised the price of houses.

The admonition to buy land because they aren't making it anymore, should now be, buy land inside the urban growth boundary because they aren't letting you build on anything else anymore.

Newgeography, March 31, 2015. By Wendell Cox
Piketty's Wealth Driven Inequality: Virtually All In Housing? 

The Economist headline reads: "Through the roof: Rising house prices may be chiefly responsible for rising inequality"

This is no surprise to those of us who have been chronicling the loss of destruction of middle income housing affordability where urban containment policy has been implemented from Australia to Canada, Ireland, New Zealand, the United Kingdom and the United States.

Matthew Rognlie, a graduate student at the Massachusetts Institute of Technology, has critiqued the highly publicized work of Thomas Piketty (Capital in the 21st Century) to suggest that rising inequality is largely due to the accumulation of wealth in housing.

No comments:

Post a Comment