Which Countries are most at risk of a Housing Bubble?

Looking at the 4 key Housing Market Indicators in 22 developed Economies

It’s been more than a decade since the last housing bubble collapse in the United States caused a major global financial crisis. The catastrophic economic event of 2008 had far-reaching consequences not just for the American real estate market, the contagion effect spread to other parts of the World as well. The extended tenure of loose monetary policies following the crisis & the ensuing decade long market bull run has seen capital flock to the housing sector.

Historically speaking, Real estate is considered to be the safest bet by Investors for long term investment. While there is some merit to this conclusion, things can turn ugly if the fundamentals turn south as we saw in the market collapse of 2008 in the U.S caused by the subprime mortgage lending. Experts have been watching some housing markets where there is a real risk of a bubble developing and they are overdue for a price correction before the inflating bubble pops.

Bloomberg has recently published a study by an economist Niraj Shah, who attempted to figure out which markets were most at risk of a housing bubble. The same study of 22 countries was presented in an infographic by Visual Capitalist below. The study tracked…