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The only situation where that happens are a complete demand collapse
Yea - our population would have to stop growing and actually significantly reduce. What are the chances?
Let’s face it there’s fuck all chance of supply ever dealing with this - unless a new (and usefully proximate to somewhere worth being) land mass suddenly appears out of nowhere.
If property prices fell to the level I actually think is reasonable in principle (ie, same multiple of median income as when my house was built in the early 1900s, adjusted for cost of funding and whatever else) - everyone would be wiped out.
The only situation where that happens are a complete demand collapse or somehow catching up on the last 40-odd years of building that didn't happen for various reasons.
Equities can take a beating - and at least some definitely will as firms crumble under the debt they were loaded up with when servicing it was cheaper - and most people won't really be affected until they come to retire.