Ehhhhh only to what it can be reliably sold for, not to what most people can afford. If 10% of people are multimillionaires (and they are in the US) but 40% of people don’t even have $500 to their name (also is the case in the US) you can absolutely continue to see a housing market that is in part just passing wealth around that top 15%, especially if they can turn around and rent the investment properties to the bottom 50% to make even more money
Now, things do get really interesting when the wealthy aren’t interested in the property in a given area, and the market flips from ponzi scheme to actually being houses that people can realistically afford and do live in. Of course such places also tend to be on the knife edge of also being mortgage deserts because they tend to be very small towns with dwindling populations
Ehhhhh only to what it can be reliably sold for, not to what most people can afford. If 10% of people are multimillionaires (and they are in the US) but 40% of people don’t even have $500 to their name (also is the case in the US) you can absolutely continue to see a housing market that is in part just passing wealth around that top 15%, especially if they can turn around and rent the investment properties to the bottom 50% to make even more money
Now, things do get really interesting when the wealthy aren’t interested in the property in a given area, and the market flips from ponzi scheme to actually being houses that people can realistically afford and do live in. Of course such places also tend to be on the knife edge of also being mortgage deserts because they tend to be very small towns with dwindling populations