
Priced out of Paris - flyingyeti
http://www.ft.com/intl/cms/s/2/a096d1d0-d2ec-11e2-aac2-00144feab7de.html
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twic
Hmm. Are there really enough 1%ers to drive up rents across the entire city?
In city after city?

Isn't it more likely that this is simply about migration into global cities,
by people of all incomes, exceeding the growth rate of accomodation capacity
in those cities?

It seems like this phenomenon could be usefully analysed quantitatively. I
haven't seen anyone do that yet.

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rdouble
Could be, because the 1% buy multiple properties in many different cities.
There have been articles about how the City of London has neighborhoods of
empty luxury apartment developments owned by various sheikhs and
russian/central asian commodities oligarchs.

In SF when you buy a house you are also competing with dozens of investors
from overseas paying cash who don't have any intention of ever living there. I
believe that the Vancouver real estate market was also affected by overseas
investors in a similar way, making it the least affordable housing market in
North America.

Multiply this speculative real estate investment by 1% of 7 billion and it
could very well be a major factor in pushing up rents, especially in certain
super desirable cities like Paris. There's about 1.7 million residences there.
Even if only 1% of the 1% want a pied a terre there, the rest of the people
trying to live there would feel the squeeze.

