I *suspect* that one reason for the housing bubble is that there's now a lot more "real estate investors" owning 2+ properties. There was a similar buildup of investors in 2000-2007, but a lot of them went bankrupt due to poorly vetted mortgages. The current generation of investors won't go bankrupt as easily and thus the bubble could persist for much longer.
Agreed! And your point covers one scary aspect about bubbles - they can persist for a long time despite a large number of people or even a majority knowing they are bubbles! Sometimes, it can even accelerate them further
Unfortunately I do not for this time series but I wondered the same thing about how this looked historically. My guess is that it goes lower the further back you look as family size has decreased over time but not 100% sure
I *suspect* that one reason for the housing bubble is that there's now a lot more "real estate investors" owning 2+ properties. There was a similar buildup of investors in 2000-2007, but a lot of them went bankrupt due to poorly vetted mortgages. The current generation of investors won't go bankrupt as easily and thus the bubble could persist for much longer.
Agreed! And your point covers one scary aspect about bubbles - they can persist for a long time despite a large number of people or even a majority knowing they are bubbles! Sometimes, it can even accelerate them further
Do you have data prior to 2000?
Unfortunately I do not for this time series but I wondered the same thing about how this looked historically. My guess is that it goes lower the further back you look as family size has decreased over time but not 100% sure