Semis and the Housing Boom

From a piece in EE Time today suggesting that any phffft-ing of global house prices would have a nasty effect on semiconductor markets:

[The analyst] cited an article in The Economist and reported that the total value of residential property in developed countries had risen by more than $30 trillion over the past five years, to $70 trillion, an increase equivalent to 100 percent of those countries’ combined GDPs.
[He] went on to say that such rapid growth dwarfed the global stock market bubble of the late 1990s which demonstrated an increase over five years at 80 percent of GDP, and the Wall Street crash (55 percent of GDP). [He] also observed that the stock market crash of 2000 triggered a 32 percent decline in the semiconductor market in 2001.


  1. Odd choice of comparitive statistics. Should we expect the EETimes to know better, or can we blame The Economist?
    Suppose that residential property has increased from 40 to 70 in 5years. That’s close to 12% annually. At least that’s a useful number to know. Why make everything relative to a random number like GDP?
    I’d guess that total US assets are conservatively 55T. If developed world residential real estate is 70T, that doesn’t seem so outrageous, does it?