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January 18, 2011
Will Our Real Estate Values Repeat Japan's Experience?
A friend of mine sent me this graph from Societe Generale, via the Business Insider. Unfortunately he couldn't give me a link to the original source, so all we've got is the graph itself. But it's pretty interesting:
So the upshot is, if you overlay Japan from 15 years ago with the US today, you find a strong correlation between the size of the working population and the price of real estate, and between the histories of the two countries. Since our working population is projected to decline,
if we continue to follow Japan's experience, our real estate prices will drop as well.
Not a happy prospect, but possibly useful in your financial planning.
H/T: Kent