WEBVTT X-TIMESTAMP-MAP=MPEGTS:900000,LOCAL:00:00:00.000 00:00:00.030 --> 00:00:06.990 Property prices are soaring all over the world making the dreamof owning a home increasingly out of reach and sending rents 00:00:07.020 --> 00:00:13.530 soaring. It's a problem that democratic and authoritariangovernments alike are struggling with and poses the risk of 00:00:13.530 --> 00:00:20.520 leaving an entire generation behind. So joining us now fromBerlin is Bloomberg's senior editor for international government 00:00:20.550 --> 00:00:27.330 Alan Crawford who has been tracking this story for us andactually wrote today's Big Take. Alan thank you so much for 00:00:27.330 --> 00:00:33.149 being here. There's the title of your article right there. Solet's just talk about that. The housing crisis that we're seeing 00:00:33.180 --> 00:00:39.510 it is different across the world in different countries acrossthe world. Can you just explain for us sort of what you found in 00:00:39.510 --> 00:00:47.840 your reporting on this issue.Well some of the statistics that we're talking about are really 00:00:47.840 --> 00:00:57.290 quite breathtaking that we're seeing for example in Seoul theSouth Korean capital that average apartment prices are have 00:00:57.290 --> 00:01:07.210 doubled in the past five years. And right across the US andwe're looking at increases in the first quarter of something of 00:01:07.260 --> 00:01:15.140 both 10 percent or more. And that's right across the country.That's not just the traditional hotspots of New York or San 00:01:15.140 --> 00:01:18.650 Francisco.But then we're also seeing 00:01:20.360 --> 00:01:30.950 in for example in Canada just outside Toronto and Hamilton thenwe saw house prices as this is an average single family home 00:01:31.670 --> 00:01:40.940 there up something like 30 percent in one year. So this ishappening largely as a result of the pandemic and it's happening 00:01:40.970 --> 00:01:47.545 everywhere. Can you talk about what role the pandemic has had inraising these prices across the world. 00:01:50.010 --> 00:01:59.700 Yeah. This is awesome. This is what's peculiar about thephenomenon is that the pandemic is as a consequence of various 00:01:59.700 --> 00:02:08.220 factors including ultra rule low interest rates just the veryfact that not many homes are being built as well as shifting 00:02:08.220 --> 00:02:15.660 patterns in family spending that has driven house prices tofresh records right across the world. And that's the other point 00:02:15.660 --> 00:02:24.240 that it does seem to be happening every year rather thanindividual pockets. And that of course this is posing particular 00:02:24.240 --> 00:02:33.120 problems for governments as they try and tackle this issue.Because just to see from the pure data the statistics it's a 00:02:33.120 --> 00:02:41.760 generational issue because baby boomers people of my age aremore likely to to own their own home. And that risks leaving 00:02:42.120 --> 00:02:50.160 millennials and Gen Z far behind. Absolutely. And Alan youreally paint this picture in your article about the struggle 00:02:50.220 --> 00:02:57.840 that a lot of governments are facing to try and ease some of theburden of owning a home. Can you just talk to us about what is 00:02:57.840 --> 00:03:04.950 working with some of these governments. What are some of theproposals that are being floated to to ease a lot of the housing 00:03:04.950 --> 00:03:13.540 burden that we're seeing.I should say that if you leak a twin related crisis which is 00:03:13.540 --> 00:03:23.620 that the rental market that the prices the cost of renting anapartment is is also skyrocketing in many cities across the 00:03:23.620 --> 00:03:32.980 world. And so for example where I am here in Berlin then the thecity government is faced large demonstrations. There's a 00:03:32.980 --> 00:03:41.500 referendum on trying to seize property from private landlords.These are very large private landlords. I sort to try and head 00:03:41.500 --> 00:03:49.780 this off. The city government bought 15 of those and the just onFriday to try to switch this anger. But elsewhere we see things 00:03:49.780 --> 00:03:59.830 like in the Canadian election. Prime Minister Justin Trudeau hasproposed a two year ban on foreign oil laws on foreign buyers of 00:04:00.010 --> 00:04:09.580 property in Canada even in Ireland. We're seeing proposals fromthe main opposition party to try and force banks to cut their 00:04:09.580 --> 00:04:18.490 interest rates on mortgages. So there's a whole panoply ofissues of proposed solutions none of which really is looking 00:04:18.490 --> 00:04:25.180 like a sustainable fix. So then what. What are we potentially tosee happen. You make some comparisons. Are experts make some 00:04:25.180 --> 00:04:31.720 comparisons to the last housing crisis. I mean is that a worstcase scenario. Are we going to potentially see it crash before 00:04:31.720 --> 00:04:39.500 this eases up.Well certainly Bloomberg Economics has done some work on this 00:04:39.540 --> 00:04:52.680 and they were looking at the propensity for some markets to twoto to face essentially a housing crisis. And if interest rates 00:04:52.770 --> 00:05:02.760 are to rise and that's that's a big if that it's not to overestimate to to to to put too much emphasis on that risk. But 00:05:02.850 --> 00:05:10.470 what I was looking at is that that's that's a longer term threatof course. But we're really looking at political uncertainty 00:05:10.470 --> 00:05:17.790 here because for example here in Europe the Swedish governmentcollapsed earlier this year over 00:05:19.740 --> 00:05:30.870 one of the large issues was proposed changes to the rentalmarket. And I again in Berlin then we're looking at this 00:05:30.870 --> 00:05:38.010 referendum which happens the same day as the German federalelection next Sunday which would potentially force the city 00:05:38.010 --> 00:05:47.790 government to to nationalize properties. So there are all sortsof far reaching but really not quite clear consequences for 00:05:47.790 --> 00:05:52.055 governments other than it it stokes instability.