Simple maths
The above graphs (source) are a very simple, almost crude analysis of why the quality of life in the UK has increased slower than real incomes.
Put simply, while incomes have been increasing faster than inflation, the spare income has been spent on housing and bill costs. We spend more and more of our income to pay for our housing, water and fuel, all things with price rises exceeding inflation levels for years.
Isn't it strange that the measure of inflation excludes fuel and housing costs when these are the two things where price rises are most felt?
A real estate thought
I come across a large number of real estate project these days, and I can see a clear distinction between them.
There are those projects that started at the top of the market. Typically, they lack finance, and sales have been slow or non existent. Developers approach you with one main objective: getting some money to get the thing off the ground.
Other projects are a bit different. They are mainly sold, almost or completely built. Developers don't need the money to complete, but they need to sell out the last remaining units so they can move on.
Obviously the former ones are a real problem, especially in some countries where they form the majority.
There have been some positive signs from the market, but I find it hard to figure out what these projects will become and when they might start. Or at least, when they might be cancelled so the market can move on.