Global housing markets bounce back
From Canada to the US, global housing markets have surpassed crises and made a comeback

Global house prices have shrugged off a succession of crises and bounced back stronger, says The Economist. True, real prices are down 5.6% from post-pandemic peaks amid higher interest rates, but that drop is much lower than many predicted. And prices are now rising rapidly again. The roots of today’s cross-country housing “supercycle” lie in the second half of the 20th century, when red tape around land use began to choke off new construction.
Across developed countries, residential construction as a percentage of population peaked in the 1960s and has since fallen to half that level today. There are no signs that the trend will slow. Interest rates are about to fall. Immigration continues to drive fresh demand in many countries. And creaking infrastructure and increasingly “torturous” commutes make it impossible to build new suburbs further out from city centres.
For all the talk of the pandemic ushering in an era of working from home, modern economies increasingly concentrate growth and job opportunities in “metropolitan hubs”, creating intense competition for limited urban housing, says Denisse López for El Pais. A prolonged slump in construction after the 2008 crisis has contributed to a global shortage, while chronic underinvestment in public housing over recent decades has exacerbated the problem.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Half of survey respondents across the OECD group of 38 rich countries now report being “dissatisfied with the availability of affordable housing”, placing the issue ahead of living standards, healthcare and education, say Valentina Romei and Sam Fleming in the Financial Times. In the US, the average house costs 31% more than when Joe Biden took office. In England, house prices are eight times the average annual salary, more than double the ratio in 1997.
Housing markets are sliding
Though housing is in a long-term boom, higher interest rates have seen prices in major cities ease back over the past two years in real terms, according to the 2024 UBS Global Real Estate Bubble index. Property bubbles in Frankfurt, Munich, Stockholm, Hong Kong and Paris have all hissed air, with real prices down a fifth from post-pandemic peaks. Vancouver, Toronto and Amsterdam have seen 10% falls in real terms from the peak.
London prices have lost 25% of their value in real terms since the 2016 peak. The capital is given a “low” bubble risk by UBS. The Swiss bank uses metrics such as the cost of renting and a city’s own house-price history to track housing bubbles. UBS finds that, at present, the biggest risk of a bubble is in Miami. Real prices in Florida’s capital have increased nearly 50% since late 2019 amid a “booming luxury market”. Property in Tokyo and Zurich is also looking unsustainably expensive.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019.
Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere.
He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful.
Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.
-
8 of the best houses for sale with follies
The best houses for sale with follies in the grounds – from a five-storey Victorian Gothic tower in Tonbridge, Kent, to a former mill in Oxfordshire with gardens that include a folly on an island in a lake
-
A tale of two Reits – why performance matters for valuation
AEW UK and Regional are two Reits that are valued very differently, despite a shared focus on properties outside London
-
The Palace of Westminster is falling down
The Palace of Westminster is in need of repair, but the bill is prohibitive, says Simon Wilson
-
8 of the best houses for sale with separate accommodation
The best houses for sale with separate accommodation – from a converted 17th-century threshing barn in Monmouthshire, to a Grade II-listed Queen Anne house in North Yorkshire with four apartments in the stable block
-
The great Reit fire sale – where to find the best value
The real estate investment trust (Reit) sector offers some once-in-a-lifetime opportunities
-
8 of the best properties for sale with orangeries
From a converted Victorian Catholic school with a chapel in Kingston Upon Thames to a 12-acre country estate with mature gardens and a lake in Nantwich, Cheshire, we look at some of the best properties for sale with orangeries
-
'Labour’s failure on house building is turning into a national emergency'
Opinion Labour’s plans on house building are not working out and it's not hard to work out what has gone wrong, says Matthew Lynn
-
8 of the best properties for sale with mountain views
The best properties for sale with mountain views – from an Arts & Crafts house with holiday lets in the Carding Mill Valley in Shropshire to a highland lodge with wood-burning stoves near the Rogie Falls in the Scottish Highlands