This is a curious fact for folks who are hypothesizing another 2008-style real estate meltdown.
People need to live somewhere, every day.
Wages and cost of living have an innate balance, that sometimes swings more one way or the other, but by definition can't exceed certain limits: e.g. we can't all make US minimum wage and afford SF rents / home prices.
And you know what a great investment during inflationary periods is? Debt! Specifically, fixed-rate debt.
And you know what the easiest to obtain source of large amounts of long-maturity, fixed-rate debt in most countries is? Mortgages.
People need to live somewhere, every day.
Wages and cost of living have an innate balance, that sometimes swings more one way or the other, but by definition can't exceed certain limits: e.g. we can't all make US minimum wage and afford SF rents / home prices.
And you know what a great investment during inflationary periods is? Debt! Specifically, fixed-rate debt.
And you know what the easiest to obtain source of large amounts of long-maturity, fixed-rate debt in most countries is? Mortgages.