> Ireland had arguably the world’s largest housing bubble and crash in the 2000s, with prices quadrupling in the decade to 2007,
even while supply soared, before crashing by more than half between 2007 and 2012. (emphasis mine)
That wasn't the accepted wisdom at the time. Prices going up spelled 'supply shortage' to most. When the tide went out (i.e. credit availability) it revealed an oversupply.
We should learn from this. Demand comes in two forms. Demand for housing and demand for property investments. We should not lose site of the drivers of the second type of demand. It can make what isn't a supply shortage look like one (and feel like one for the average person).
Edit: It's worth noting that 15 years after the collapse, prices in Ireland had finally recovered and once again a shortage of available housing is a reality. I say 'available housing', because the long term rental market is dire, but if it's a short term rental you're after, well...
That wasn't the accepted wisdom at the time. Prices going up spelled 'supply shortage' to most. When the tide went out (i.e. credit availability) it revealed an oversupply.
We should learn from this. Demand comes in two forms. Demand for housing and demand for property investments. We should not lose site of the drivers of the second type of demand. It can make what isn't a supply shortage look like one (and feel like one for the average person).
Edit: It's worth noting that 15 years after the collapse, prices in Ireland had finally recovered and once again a shortage of available housing is a reality. I say 'available housing', because the long term rental market is dire, but if it's a short term rental you're after, well...