The Real Estate Myth
The recent bubble has greatly encouraged public belief in a long-standing myth—the myth that, because of population growth and economic growth, and with limited land resources available, the price of real estate must inevitably trend strongly upward through time.
Since the late 1990s people have increasingly come to believe in our existing cities—in their uniqueness, in their special status. As we saw in Chapter 3, the strength of this belief seems to be associated more with the idea that the increasingly capitalist world is growing rapidly richer than with the observation that simple population growth is at work in producing higher prices.
Indeed the GDP of advanced countries has been increasing at about 3% a year for many decades, and it stands a good chance of continuing to do so over the