China’s largest cities are so overpriced that migrant workers are going back to the rice paddies — and I predict urban unrest in the years ahead from the younger migrant workers who don’t know how to farm or want to go back. There’s at least 150 million in that group.
In San Francisco, you have people living in cars and taking showers at the office, teachers having to live in dormitories and people renting out single rooms in houses.
In Vancouver, you have a 15% foreign buyer tax plus 12–16% on top of that if you flip within one to two years. Prices dropped at first but are now shooting to new highs despite that aggressive policy. You also have 400-foot micro studios with a fold-down bed for $400,000 or more.
In China, they have 66 square feet ‘closet’ apartments. That’s the size of the 7 foot by 10 foot carpet in my home office. A bed, a toilet and sink, a small drawer and closet…basically a jail cell.
In LA, and other cities like San Francisco and Cleveland, there are increasing renter riots, while rents have just crashed 15% in Chicago.
Editor, Harry Dent Daily