[intended]

At the same time a recent NBER paper indicates that it’s not housing supply that’s causing house prices to rise, but geographic income levels.

My suspicion is that it’s a question of who has more control over asset classes and wealth.

Even in India, I see eye-wateringly expensive houses snapped up, with more being built. The same for london and any major city in the world.

It feels very much like the biggest participants in the economy, are the asset managers for yet richer people.

The economy feels like it’s retooling for the wealthy and above.

[tptacek]

That paper compared entire metropolitan statistical areas, as if Oak Park Illinois was the same housing market as Gary Indiana, or Vallejo the same as Palo Alto.