Richard Florida
by Richard Florida
Tue Mar 31st 2009 at 3:48pm UTC

Housing Crisis Goes Global

The housing crisis has spread globally according to data from The Economist.

Source: The Economist.

Housing prices were down the most in the United States (nearly 20 percent), but substantial declines have also occurred in Britain and Hong Kong – two countries with large and dominant financial sectors. Prices were also down significantly in Ireland, New Zeland, the Netherlands, Denmark, and Singapore. Prices have held up in Switzerland, Italy, and France, according to this data.

The second graph charts the trend in commercial real estate.

Source: The Economist.

Commercial office rents fell by 41 percent in London and 25 percent in Mumbai and Sydney. Office rents were off by more than 5 percent in New York, Hong Kong, Frankfurt, and Sao Paolo. Rents were up in Tokyo, Moscow, Beijing, and Dubai.


One Response to “Housing Crisis Goes Global”

  1. DBC Reed Says:

    The Creative Class ,from what I can tell, probably needs cheap property for rent and purchase and the uncontrolled property market does not provide it, driving up land price inflation in bubbles which then collapse.You cannot have Keynesian demand management and expect cheap credit to go into the provision of goods and services when it can,instead, be hedged into property.
    Henry George got this straight in the Californian gold Rush when there was loads of money around but the poor got poorer because rents were going up.
    George deserves more recognition in his native land as in some ways the equal of Marx and ,as regards, the present crisis with house prices (in the UK and the USA),as someone of particular relevance.