From the archive: Housing wealth [who’s really benefited from rising house prices]

Thomas Neumark /   May 2, 2013 at 8:34 PM 1,430 views

Housing3

There has been lots of discussion recently about how much more the ’1%’ earn than everyone else. There has been less attention paid to how much more they own. In fact, wealth (what people own) is more unequally distributed than income. Wealth vs income distributionThis chart gives you an idea of just how unequally distributed wealth is in the UK. Wealth distribution Wealth includes things like pensions and stocks. If we just concentrate on housing wealth (total housing wealth in the UK stands at something like £3,375 billion) we see a similar picture. Here is how housing wealth is distributed. Distribution of housing wealth House prices have increased significantly, even adjusting for inflation, since the 1970s as this chart shows. House prices adjusting for inflationHowever, this has not uniformly benefited all homeowners. Rises in house prices for mean and medianBut has hugely benefitted those who own expensive houses. Rise in value of prime accomidationMany of whom are not born in the UK. Country of origin of prime accommodation buyers

Courtesy of Thomas Neumark of Dream Housing

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