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clustering

Clustering is when everyone fights for the same piece of real estate. It is what is helping to drive up pricing in hot markets in major cities of the top industrial nations which in turn feeds income inequality. Part of the solution is that we can no longer afford take a NIMBY attitude of exclusivity of neighborhood because the world population is exploding. Therefore if that means more residential towers then that is what it will take.

Notice that young couples today have a greater income, in relative terms, than we did at the same age with the notable exception that a much greater share of their take home pay now goes towards mortgages. Major cities in the world are seeing an inflation of pricing due to to speculators to benefit people who sometimes do not even live there but want a foothold for future use. In some areas they have ostensibly created ghost buildings.

Part of our global effort to fight increasing income disparity must be focused in this area to keep communities viable and healthy. The alternative is to see a worsening situation where housing for future generations becomes a hazardous enterprise to undertake because it will impoverish many of them while the top 1% continues to drive up pricing.


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