Prices have risen by 54% in the United States, 32% in China and nearly 15% in the European Union between 2015 and 2024. Though policies have been implemented to increase supply and regulate rentals, their impact has been limited and the problem is getting worse
Housing access has become a critical issue worldwide, with cities that were once accessible reaching unsustainable price points. Solutions that have been proposed, like building more houses, capping rents, investing in subsidized housing and limiting the purchase of properties by foreigners have not stemmed the issue’s spread. Between 2015 and 2024, prices rose by 54% in the United States, 32% in China and by nearly 15% in the European Union (including by 26% in Spain), according to the Organisation for Economic Co-operation and Development.
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Salaries have not grown apace with real estate prices. In the EU, the median rent rose by 20% between 2010 and 2022, with rental and purchase prices growing by up to 48%, according to Eurostat. Underregulated markets are wreaking havoc, and in the United States and Spain, 20% of renters spend more than 40% of their income on housing, while in France, Italy, Portugal and Greece, that percentage varies between 10% and 15%, according to the OECD. Many countries have created programs aimed at increasing the future supply of public housing, but their effectiveness has yet to be determined and analysts say that results will be limited if smarter regional planning decisions are not made.
But the middle class is those who are able to leverage working for their money to accumulate capital to where they can live off of the proceeds of that owned capital. If you’re able to retire, you eventually become part of the ownership class.
There is a shrinking middle class but the actual people in it are those who split their adult lives into eventually retiring on their wealth, accumulated through working.
Thats not not what middle class means.
Middle class generally means people whose incomes are in the middle half (ranging from 40th to 60th percentile to the 20th to 80th).
If you want to pull out your own new definition based on whether their income comes from work or from return on investments, then I’d still point out there’s a large number of people who do both, especially when compared across the entire life cycle including retirement. So if you insist on this alternative definition, you still have to account for the big chunk of the population who do both.