I think it is because unlike the US people can't go from country to country like you go from state to state, even though they are supposed to. Also the central banks have been giving easy credit for the last thirty years and it has pushed the price up. The UK is the worst. Out of the young adults who do not live with their parents 16 percent of them pay 40% or more of their income on housing. It is the third worse in the EU. Most of the South East is like the London prices.
well, that brings up a deeper problem old Random.Capital turned me on to. We have free trade when it comes to goods, but not free trade when it comes to the people who make the goods. Countries hoarde their labor. And they have excessive tarrifs when it comes to letting new laborers into their country. Goods are free to go wherever there is a market for them, but people are not allowed to follow the market. Over here they complain about cheap labor coming in from Mexico, but they have no idea what it would be like if everybody who made something for walmart was allowed to live in the country that sells their product. It's a little over my head, but that's it for starters.
how about no pay for many young people because they are unemployable? in time home builders will build to the new reality. housing stocks have moved up nicely in the US since november 2011.
Living at hom with your parents can actually be a smart move to becoming a good trader. As most successful traders will tell you, this game is no different than learning to be a Doctor or a lawyer, ie minimum of a few years without getting paid (possibly even losing, but not too much, remember you're smart and therefore only risk tiny amounts of money as you learn). The pressure to 'make money' has been the ruin of many potentially successful traders. Living at home offers no bills and more importantly NO PRESSURE to pay any bills. Sure, your friends might snigger and the girls call you a Mummy's boy but if you work hard, and I mean really hard at learning your game with no pressure you'll be able to hit back big time over the following 5 years as your life gets MAJOR UPGRADE But you must sit down with your parents and explain your plans and you must also take your time to explain what trading is really about because chances are they'll think you're a gambler. Good luck!
The root of the problem is the opening of the door to the free markets of nations with an average higher IQ than Western nations and with kids who do not spend their whole day reading what some lady Gugu did the other day.