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What if the housing crisis is what's causing wealth inequality? Piketty's data pointed to this.

Definitely is a negative feedback loop. So I expect the trend to accelerate as long as foreign investment keeps flowing into the US in the same rates

Other than people claiming it, what actual evidence have you seen that foreign investment would be a problem if we weren't restricting housing supply?

If it is just internal money the bubble will burst. If you have the entire world pouring cash to bid on us real estate it can really go to almost infinity

The main reasons that international cash comes in is either speculation or offshoring money.

If the housing supply actually matched demand, the housing market becomes unattractive for speculation.

If foreigners are buying houses just to park their money, building more housing to meet the demand helps to alleviate that. This situation feels like a case where regulations designed to prevent housing supply from sitting empty can make sense but I have no evidence or story on how would need to be implemented to achieve that goal without negative unintended consequences.

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