Demand for single-family houses is growing. This is the case for a couple of years right now. But is that a problem? If we look at the data than it is no issue.
When we look at the ’50s of the last century than we need to notice that houses became bigger with 33%. So you had bigger houses. Always nice. At the same time was the size of the family went down with 22%. So on that side, we are getting a lot more living space.
This is important to keep in mind. After all, more and more people are overworked and stressing out. Just to keep making payment on real estate. But if this is the case. Why are we then still buying all those houses? Would simply not buying be smarter?
But what is the real source of the problems? It will not surprise you but it are the special interest groups. The special interest groups push the local government for big houses This in an effort to increase the chances of economic survival in a certain area.
But if we look at what is selling fast we just see that they are middle-class houses. Not the expensive ones. They can last for a long time. The average houses.
It is something politicians won’t like. But it is a fact that most people can’t afford a villa. Most people can’t afford an inside heated swimming pool.
So now we are heading towards a cooldown of the economy it is important to keep this all in mind. The regulatory enforcement will reduce in fewer opportunities to create sustainable solutions. With the increased pressure on developers due to the Paris, Climate Agreement might just the last thing to keep affordable housing becoming part of history.