Part 5/7:
Even when considering purchases versus lending, the effect on the housing market remains constant—both increase demand, and consequently, property prices. If a wealthy person lends money for a mortgage, they effectively create another transaction where they are still profiting from the transaction despite a different ownership structure.
The Future of Mortgages and Wealth Disparity
As the wealth gap continues to grow, it becomes apparent that the trend toward larger mortgage debts will worsen over time. Younger generations are left with the stark choice of either paying rent or accruing significant debt through mortgages, often leading to a cycle of financial instability.