I see a lot of expensive houses being built in my area. A LOT. And the weird thing is that they’re being bought pretty quickly. Are these people just making more money than me? If so, what are they doing for a living? Or are they just living house poor? How exactly are they affording these places?
Edit: For reference, my neighborhood is starting to become popular (because the other popular neighborhoods have priced most people out of affording places there). The normal price of newer homes here is $700k. My home, built in 1965, which is 2500sq ft on a quarter acre of land, is $500k.
It matters because blaming foreign investors is a diversion used to avoid bringing forth actual solutions.
Another take is that it’s the developers who is to blame for the high prices. What would happen if they stopped buying land? Short term? Disaster, no new houses, prices sky rocket. Long term? With no new supply investors and foreign buyers will just leave the market since it’s not making money. As they leave, more supply will be available for the normal people.