P
eter Thiel, co‑founder of PayPal and early investor in Facebook, is now warning about a crisis in real estate. In a conversation with Commonwealth Canada, he cited 19th‑century economist Henry George to explain why the U.S. housing market is spiraling. Thiel argues that land and housing are “extremely inelastic” assets, especially where zoning restrictions limit supply. When a city’s population grows by 10 %, home prices can jump 50 %, while wages rise only modestly. The result is a GDP boost that largely benefits boomers, landlords, and other property owners, while squeezing the lower‑middle class and preventing young people from buying homes.

    He says this “Georgist real‑estate catastrophe” is unfolding across Anglosphere nations—U.S., U.K., Canada. The S&P CoreLogic Case‑Shiller U.S. National Home Price NSA Index rose 45 % over the last five years, nearly doubling the average single‑family home value. Although a Reuters poll of experts projects only a 1.4 % price increase in 2026, the trend remains a concern. Thiel links the surge to inflation, noting that while food prices rise modestly, rent is the biggest cost driver for many households.

    In short, Thiel warns that unchecked real‑estate inflation will continue to favor property owners at the expense of ordinary buyers, especially in markets with rigid supply constraints.