Global housing crisis threatens middle-class stability as prices soar in the US, China, & Europe

Posted on September 30, 2024   |  

Housing access is a major issue, with cities reaching unaffordable prices despite proposed solutions like building more homes and controlling rents.

From 2015 to 2024, housing prices rose by 54% in the US, 32% in China, and nearly 15% in the EU, with significant rent increases in big cities.

Economic growth is focused on a few large cities, leading to intense competition for housing and worsening gentrification.

Housing is increasingly treated as an investment rather than a basic need, causing affordable options to be overlooked in favor of higher-profit developments.

Platforms like Zillow and Redfin allow investors to buy properties without visiting, increasing competition in the housing market.

In the EU, median rents went up by 20% from 2010 to 2022, with many renters spending over 40% of their income on housing.

Spain passed new laws in May 2023 to limit rent increases and protect public housing, along with plans for 40,000 affordable homes.

Portugal's government has restricted new tourist apartments and increased taxes on property owners, aiming to build 59,000 new homes by 2030.

Italian cities struggle with housing shortages due to the rise of short-term rentals, with Venice planning to limit these rentals and enforce size rules for apartments.

China's housing market is in trouble, with falling prices and unfinished buildings, leading the government to introduce support measures for affordable housing projects.