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so is there any actual evidence that foreign home ownership is causing meaningful housing price inflation in Spain? or is this just uninformed pandering like it is in the US
What's causing it in the US?
Earlier quoted context omitted.
What's causing it in the US?
In Canada potentially Chinese immigrants in Vancouver/Toronto, in the US it's an over-generous monetary policy (through low interest rates, especially during COVID)
Earlier quoted context omitted.
What's causing it in the US?
It’s always supply. It’s fair to criticize foreign ownership/hedge funds purchasing homes, but the overwhelming reason is that we are not building enough.
so is there any actual evidence that foreign home ownership is causing meaningful housing price inflation in Spain? or is this just uninformed pandering like it is in the US
But, equally important is simply the number of natives prevented from buying the home they want because someone is getting a vacation property.
If it's the former, than even flaunting such a plan is a complete catastrophe for any foreign investment in Spain from now on. But if it's the latter, it'll just bring to life a whole industry of middle-men, which will use their EU residency to buy property in their name to be used by other people.
Both ways, it's yet another attempt to force a market to do something that will lead to either disastrous, or just bad results.
Earlier quoted context omitted.
It’s always supply. It’s fair to criticize foreign ownership/hedge funds purchasing homes, but the overwhelming reason is that we are not building enough.
Sure, but it's one thing to not be building enough for people to live in, and another thing to not be building enough for people to keep empty flats as speculation vehicles.
Homes have such extreme valuations because of the underlying cash flow (or 'rent' in its most abstract sense). Without tourists willing to pay many multiples of what they'd pay at home for accommodation, that cash flow wouldn't be there.
Earlier quoted context omitted.
In Canada potentially Chinese immigrants in Vancouver/Toronto, in the US it's an over-generous monetary policy (through low interest rates, especially during COVID)
in Canada, like in the US, it's a lack of supply mostly because of draconian zoning and land-use policies. Chinese immigrants are NOT the primary cause of housing cost inflation, and are likely not even in the top 10 causes.
so is there any actual evidence that foreign home ownership is causing meaningful housing price inflation in Spain? or is this just uninformed pandering like it is in the US
Meaningful is a weasel word here. Even 0.1% price increase which would be impossible to measure directly still adds up across the entire housing sector. But, equally important is simply the number of natives prevented from buying the home they want because someone is getting a vacation property.
Earlier quoted context omitted.
It’s always supply. It’s fair to criticize foreign ownership/hedge funds purchasing homes, but the overwhelming reason is that we are not building enough.
Sure, but it's one thing to not be building enough for people to live in, and another thing to not be building enough for people to keep empty flats as speculation vehicles.