Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Massive Stock Market Price Reversion May Be Days or Weeks Away - 22nd Sep 19
How Russia Seized Control of the Uranium Market - 22nd Sep 19
Dow Stock Market Trend Forecast Update - 21st Sep 19
Is Stock Market Price Revaluation Event About To Happen? - 21st Sep 19
Gold Leads, Will the Rest Follow? - 21st Sep 19
Are Cowboys Really Dreaming of... Electric Trucks? - 21st Sep 19
Gold among Negative-Yielding Bonds - 20th Sep 19
Panicky Fed Flooding Overnight Markets with Cash - 20th Sep 19
Uber Stock Price Will Crash on November 6 - 20th Sep 19
Semiconductor Stocks Sector Market & Economic Leader - 20th Sep 19
Learning Artificial Intelligence - What is a Neural Network? - 20th Sep 19
Precious Metals Setting Up Another Momentum Base/Bottom - 20th Sep 19
Small Marketing Budget? No Problem! - 20th Sep 19
The Many Forex Trading Opportunities the Fed Day Has Dealt Us - 19th Sep 19
Fed Cuts Interest Rates and Gold Drops. Again - 19th Sep 19
Silver Still Cheap Relative to Gold, Trend Forecast Update Video - 19th Sep 19
Baby Boomers Are the Worst Investors in the World - 19th Sep 19
Your $1,229 FREE Tticket to Elliott Market Analysis & Trading Set-ups - 19th Sep 19
Is The Stock Market Other Shoe About To Drop With Fed News? - 19th Sep 19
Bitcoin Price 2019 Trend Current State - 18th Sep 19
No More Realtors… These Start-ups Will Buy Your House in Less than 20 Days - 18th Sep 19
Gold Bugs And Manipulation Theorists Unite – Another “Manipulation” Indictment - 18th Sep 19
Central Bankers' Desperate Grab for Power - 18th Sep 19
Oil Shock! Will War Drums, Inflation Fears Ignite Gold and Silver Markets? - 18th Sep 19
Importance Of Internal Rate Of Return For A Business - 18th Sep 19
Gold Bull Market Ultimate Upside Target - 17th Sep 19
Gold Spikes on the Saudi Oil Attacks: Can It Last? - 17th Sep 19
Stock Market VIX To Begin A New Uptrend and What it Means - 17th Sep 19
Philippines, China and US: Joint Exploration Vs Rearmament and Nuclear Weapons - 17th Sep 19
What Are The Real Upside Targets For Crude Oil Price Post Drone Attack? - 17th Sep 19
Curse of Technology Weapons - 17th Sep 19
Media Hypes Recession Whilst Trump Proposes a Tax on Savings - 17th Sep 19
Understanding Ways To Stretch Your Investments Further - 17th Sep 19
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

How to Spot Global Real Estate Bubbles

Housing-Market / Global Housing Markets Sep 29, 2017 - 06:21 PM GMT

By: Rodney_Johnson

Housing-Market

There’s an easy way to identify the cities with the big real estate bubbles. Just find out where the richest citizens live!

Back in late 2016, writer Peter Reegh put together a list of the 15 cities based on population of the wealthiest citizens, which was published on therichest.com. These same 15 cities remain at the top of this list today (only now more inflated than a year ago), allowing us to immediately know what areas to avoid.


And, once real estate prices have crashed, which I expect they will begin to do sooner rather than later, we’ll have a list of 15 places to find bargain properties!

Here they are, from the “poorest” of the rich to the richest…

15. Istanbul

Not everyone would have guessed this, but it’s the most classic and beautiful city on the strategic cusp of Europe and the Middle East. And, at last count, it’s home to 24 billionaires, which is more than what Tokyo or Seoul has.

14. Tokyo

Tokyo is the perfect example of what happens when a major bubble bursts. The richest people lose the most because they dominate the bubbly financial assets from real estate to stocks. Tokyo’s massive wealth decline shows the downside risk of these richest and most expensive cities.

At its height in 1989, Tokyo would have taken first or second place on this list. It’s only at #14 now, with just 18 billionaires calling it home.

13. Chicago

Chicago is the third-largest city in the U.S., and it’s the financial capital for the commodity markets and the Midwest, so it’s not surprising that it’s on this list.

12. Paris

Perhaps the most classic city in Europe, Paris has bubbly real estate prices to match. It is home to 22 billionaires, less than half that of London. But, then again, London is the financial capital of Europe!

11. Seoul

Seoul is more beautiful and sophisticated than I expected, and it’s home to 30 billionaires.

10. Mumbai

The leading-edge and largest city in India, Mumbai is the country’s financial hub and home to Bollywood. It has 30 billionaires, 60% as many as Beijing. Not bad for a country with less than half the average incomes of China.

It’s also the location of a 27-story, billion-dollar home right downtown.

9. Boston

Boston’s presence on this list is unsurprising. After all, it’s home to very strong finance and healthcare companies.

8. Washington, D.C.

Also, not a stunner, Washington, D.C., is the government center of the U.S., just like Beijing is to China.

7. Beijing

Beijing is the richest city in mainland China, with 50 billionaires. As expected, it’s one of the most overvalued cities in China after Hong Kong.

6. Moscow

This was a bit of a surprise, but it attests to how much wealth and power the 10,000 oligarchs in Russia (and Putin) have amassed.

5. Los Angeles

Compared to New York’s 1 million wealthy, Los Angeles only has 350,000 rich people. But its total wealth is estimated at $1.3 trillion, which is more than what San Francisco boasts. But, then again, San Francisco is more overvalued, as its overall ranking suggests.

4. London

London has the third-highest number of billionaires, 50 of them, and is a magnet for Middle Eastern and Russian investors.

3. San Francisco

There may not be as many billionaires in The City by the Bay as L.A. – just 23 – and it has only $1 trillion in wealth, but San Francisco is the second-bubbliest city in the U.S. compared to average or median incomes.

2. Hong Kong

The Jewel of the Orient has the second-greatest number of billionaires – 60 of them. And its real estate bubble is even greater than New York’s when compared to average or median incomes. It has the highest price-to-income ratios in the world today.

In Hong Kong the rich drive up the cost of living more than anywhere else for the everyday person. And, yes, it is now offering 61-square-foot “closet” condos to compensate.

1. New York

The Big Apple is home to 1 million wealthy citizens and 80 billionaires, dwarfing any other city. It has a total estimated wealth of $3.5 trillion.

The overvaluation in these top global cities is roughly in the order of this ranking. I have been warning rich people in these cities that these paragons of wealth will fall the hardest, and that would include Silicon Valley.

Yet almost all I talk to think that because these cities are so attractive and have such rich citizens, they can’t fall even a little…

History says the exact opposite.

During the Great Depression, Manhattan, then also the #1 “city,” fell the most of any and took the longest to recover by far.

My advice in these uber-cities: RENT, DON’T OWN!

Harry

http://economyandmarkets.com

Follow me on Twitter @HarryDentjr

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.

Copyright © 2017 Harry Dent- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Harry Dent Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules