Tuesday, November 30, 2021
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Geb Masterson with Mott & Chace Sotheby’s International Realty appeared on GoLocal LIVE where he discussed a recent report about how globally, wealth has been primarily built through real estate in the last twenty years — and what that means in a competitive Rhode Island real estate market.
“They took ten of the larger countries…and just measured the creation of wealth, sort of like a corporate spreadsheet, and over the last twenty years, wealth has grown tremendously,” said Masterson of the McKinsey report, “The rise and rise of the global balance sheet: How productively are we using our wealth?”
“Interestingly, two-thirds of that wealth creation has been through real estate — owned by regular people like ourselves, also owned by corporations, but it’s all real estate — the values of real estate have gone up. Other stuff, like investments, intellectual property (IP), that’s like four percent,” said Masterson. “But the main driving factor in the last twenty years has been real estate.”
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High Rents, No Rentals, and Need for More Housing
Masterson discussed the still-hot sellers’ market — and even hotter rental market — in Rhode Island,
“You know, you’re paying for an OK place, you know, a two bedroom…you’re paying $2600 in rent…and they’re not available anywhere these days,” he said.
“There’s just not enough housing around, which gets back to zoning rules. And a lot of these municipalities have to start loosening up — they have to start building more housing,” he added.
Mott & Chace Sotheby’s International Realty is a paid content partner of GoLocal and appears weekly on GoLocal LIVE.