Real estate as an investment vehicle faces a structural shift that most analyses miss: the demographic cliff. Countries like Japan and now China are seeing population decline that directly reduces housing demand. In Japan, rural properties are literally being given away (akiya houses).
The bull case for RE used to be: population grows, land is finite, so prices rise. Remove the first premise and the whole thesis collapses. In 20 years, the only RE worth holding will be in the handful of cities that remain magnets for talent and capital.
Real estate as an investment vehicle faces a structural shift that most analyses miss: the demographic cliff. Countries like Japan and now China are seeing population decline that directly reduces housing demand. In Japan, rural properties are literally being given away (akiya houses).
The bull case for RE used to be: population grows, land is finite, so prices rise. Remove the first premise and the whole thesis collapses. In 20 years, the only RE worth holding will be in the handful of cities that remain magnets for talent and capital.