B
illionaire investor Peter Thiel is sounding the alarm on a crisis that's quietly ravaging the lives of young Americans: unaffordable housing. As one of Facebook's earliest investors and co-founder of PayPal, Thiel has built his fortune by spotting economic trends before they explode. But this time, he's warning about a problem that's not tech-related – it's rooted in real estate.

    Thiel points to the ideas of 19th-century economist Henry George to explain why homeownership is becoming an unattainable dream for younger generations while older homeowners reap the benefits. He notes that when a city's population grows by 10%, housing prices can skyrocket by 50% – but wages don't rise nearly as fast.

    This creates a massive wealth transfer from young renters to older landlords and upper-middle-class homeowners, with devastating consequences for lower-middle-class Americans who are locked out of the market. Thiel warns that this isn't just an American problem – it's a global issue unfolding in Britain, Canada, and other countries where strict zoning laws make building new homes nearly impossible.

    The real cost of living is not grocery prices or inflation, but rent inflation. Thiel argues that policymakers have ignored this issue for too long, blaming rising costs on immigration instead of addressing the root cause: excessive regulations and zoning laws that stifle housing supply. As demand grows and supply can't keep up, prices surge – leading to an "incredible wealth transfer" from young renters to older landlords and upper-middle-class homeowners.