Billionaire investor Peter Thiel, co-founder of PayPal and one of Facebook’s earliest backers, is raising alarm about a major problem in real estate. According to him, young Americans are finding it nearly impossible to buy a home, while older homeowners are benefiting greatly.
The Housing Crisis: Why It’s Happening
Thiel explains that when a city’s population grows by 10%, housing prices can rise by 50%. But salaries? They don’t increase nearly as fast. This means that while the economy may be growing, homeownership is slipping further out of reach for young and middle-class people.
“The biggest losers are young people and lower-middle-class families who may never be able to afford a home,” Thiel said.
And this is not just a U.S. problem. Thiel warns that countries like the UK, Canada, and others are facing the same crisis. He blames strict zoning laws, which make building new homes difficult, for keeping prices high.
Why Rent, Not Groceries, Is the Real Inflation Problem
People often complain about rising prices of everyday items like eggs, but Thiel says the real issue is rent. While food prices go up and down, housing costs keep rising—and that’s where most of people’s income goes.
Some blame high rents on immigration, but Thiel disagrees. He says the real problem is government regulations that prevent new housing from being built. As demand for homes increases but supply stays limited, landlords and wealthy homeowners benefit, while renters struggle.
The Bottom Line
Thiel believes the housing market is broken and needs serious reform. Without changes to zoning laws and policies that allow more homes to be built, young Americans may never have the chance to own a home.