General Article Social problems caused by house price inflation

Topic Selected: Housing
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By Daniel Rossall Valentine

Sustained house price inflation creates a number of major social problems including the following:

  1. Growth of the proportion of rental properties and decline in the proportion of properties that are available for purchase. This is an almost automatic phenomenon caused by house prices going beyond the level that people can borrow, and deposits also escalating. In these conditions, investment buyers become much more powerful in the market, and can use this power to a...

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