Most times when people say that “this time it’s different” about a kind of investing, they’re wrong. The only thing different is the person (wrongly) saying that this time it’s different. Such is not, however,the case in residential real estate, as the following figure from a fascinating new OECD global real estate report shows. Where real house prices and the broader economy had been connected in the past, such is currently not the case:
This time it’s (ominously) different.