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The idea that you can access the housing market by working hard and saving neatly is now outdated. That's what financial analyst Arno Wellens says in a conversation at Holland Gold. For people with an average salary, a normal home in the Randstad is no longer affordable, while saving for a house is no longer an option either. He therefore calls for drastic measures to take the air out of the housing market.
The average home costs about ten times the average income, which is out of reach for an increasingly large group of people. The alternative of saving and paying for part of the house also makes no sense, according to Wellens, because house prices have risen by an average of 10 to 20 percent in recent years. This means that for an average home of €400,000, people need to save €40,000 to €80,000 in a year. Wellens calls this 'unsaving'. In this way, the perspective of owning a home does not come closer, but rather fades further into the background.
Housing market reinforces inequality
According to Wellens, rising house prices are causing more inequality, because the equity of people with a repaid home is the direct result of high mortgages that banks provide today. To restore the health of the housing market, a sharp correction in house prices is needed and we must collectively reduce mortgage debt, if necessary by writing off debt. Click on the image below or on this link to view the full conversation.
Arno Wellens: 'Our housing market is sick to death'
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This contribution comes from Geotrendlines
