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    The real estate market’s demographic problem in “the most depressing” chart ever

    The real estate market’s demographic problem in “the most depressing” chart ever

    How low is low? Has real estate bottomed out?

    Via @TheBubbleBubble, some advice about not thinking the real estate bubble is done imploding:

    Via Business Insider,  ‘The Most Depressing Slide I’ve Ever Created’ demonstrates that we are not generating enough of a next generation to buy our houses:

    Citi’s Global Head of Credit Strategy, Matt King, has a knack for  putting together useful illustrations.

    Here, he examines one of the implications of one of the most powerful forces in  all of economics: demographics.

    King explained his charts to us like this:

    It’s what I like to call “the most depressing slide I’ve ever created.” In almost every country you look at, the peak in real estate prices has coincided – give or take literally a couple of years – with the peak in the inverse dependency ratio (the proportion of population of working age relative to old and young).

    In the past, we all levered up, bought a big house, enjoyed capital gains tax-free, lived in the thing, and then, when the kids grew up and left home, we sold it to someone in our children’s generation. Unfortunately, that doesn’t work so well when there start to be more pensioners than workers.

    The slide:


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    to the full extent allowed by law.


    Mary Sue | March 25, 2013 at 6:47 pm

    Blackspot or blight? Dunno the answer but we are all getting free birth control courtesy of Obamacare, so party on people.

    Midwest Rhino | March 25, 2013 at 7:13 pm

    If they can debase our currency enough, prices will necessarily skyrocket. But people want to burn their dollars on gold or land that produces #2 yellow corn, rather than an extra house with taxes and maintenance.

    Weren’t they going to bulldoze half of Detroit and develop some horticultural heaven? A while back they said most foreclosures weren’t even listed, so as not to flood the market.

    Detroit may foreshadow many big city disasters, unless the next radical president is rather the opposite of Obama and his five step plan to dictatorship.

    ThomasD | March 25, 2013 at 9:30 pm

    While I’m not denying much of the underlying premise it sure would have been helpful if the graphs had been presented in a common scale.

    […] The NYT notes that Housing, Ailing for Years, Starts to Recuperate but as Matt King explains (via Legal Insurrection), there ain’t going to be anybody out there that can afford to buy […]

    […] The real estate market’s demographic problem in “the most depressing” chart ever […]

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