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illionaire venture capitalist Peter Thiel is sounding the alarm on America's real estate crisis, drawing parallels with 19th-century economist Henry George. According to Thiel, the issue lies in the "extremely inelastic" nature of real estate, particularly in areas with strict zoning laws. As a result, when population growth occurs, house prices skyrocket while salaries remain stagnant, benefiting boomers and landlords but hurting lower-middle-class individuals who can't afford homes.

    Thiel warns that this "Georgist real estate catastrophe" is not unique to the US, but also affects other Anglosphere countries like Britain and Canada. The surge in US home prices has been alarming, with a 50% increase over the past five years, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.

    The sharp rise in home prices poses significant challenges for prospective buyers, but renters are also affected. Thiel notes that rent is a major cost item for lower-middle-class people, making it difficult for them to afford housing. This issue is part of the broader cost-of-living crisis affecting many Americans.

    Thiel's warnings come as real estate investment platforms like Jeff Bezos' fund allow individuals to become landlords with minimal investment and no property management responsibilities. Meanwhile, BlackRock CEO Larry Fink has emphasized the importance of private real estate investments for American retirees.