<story><title>Piketty’s rising share of capital income and the US housing market</title><url>http://voxeu.org/article/piketty-s-housing-capital-results-new-us-facts</url></story><parent_chain><item><author>nickff</author><text>From what I can see, this data-set and analysis seems to indicate that investors have been discouraged from investing in productive assets and investment vehicles by the low interest rates (or IRR).  In response, people are spending more money on luxuries (such as their houses).</text></item></parent_chain><comment><author>e3b0c</author><text>In the long run, this seems to be partly due to Henry George theorem (&lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;en.wikipedia.org&amp;#x2F;wiki&amp;#x2F;Henry_George_theorem&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;en.wikipedia.org&amp;#x2F;wiki&amp;#x2F;Henry_George_theorem&lt;/a&gt;). Otherwise real estate wouldn&amp;#x27;t be that exceptional than other asset classes, as the article suggests.</text></comment>
<story><title>Piketty’s rising share of capital income and the US housing market</title><url>http://voxeu.org/article/piketty-s-housing-capital-results-new-us-facts</url></story><parent_chain><item><author>nickff</author><text>From what I can see, this data-set and analysis seems to indicate that investors have been discouraged from investing in productive assets and investment vehicles by the low interest rates (or IRR).  In response, people are spending more money on luxuries (such as their houses).</text></item></parent_chain><comment><author>davidw</author><text>Housing is also a market where people can get very involved in the local government to prevent additional supply from being brought on line, despite soaring demand, mostly via zoning.  Look at places like Palo Alto and Boulder.</text></comment>