In the 1990s, Japan’s massive real estate bubble popped and it still hasn’t recovered.
It’s known as one of the largest real estate bubbles ever.
Canada is the orange line.
It’s literally twice as big. pic.twitter.com/2H15JVeN3K
— red pill rick (@igetredpilled) June 12, 2024
- Japan’s Real Estate Bubble (1986-1991):
- The Japanese asset price bubble occurred from 1986 to 1991, during which real estate and stock market prices were significantly inflated.
- In early 1992, this bubble burst, leading to Japan’s economic stagnation.
- The bubble was characterized by rapid acceleration of asset prices, overheated economic activity, and uncontrolled money supply and credit expansion.
- By August 1990, the Nikkei stock index had plummeted to half its peak value, and other asset prices began to fall.
- Canada’s Real Estate Bubble (2002-Present):
- The Canadian property bubble refers to a significant rise in Canadian real estate prices from 2002 to the present, with short periods of falling prices in 2008, 2017, and 2022.
- From 2003 to 2018, home and property prices in Canada increased by up to 337% in some cities.
- In 2016, the OECD warned about Canada’s financial stability due to elevated housing prices, investment, and household debt.
- Bloomberg Economics ranked Canada as having the second-largest housing bubble across the OECD in 2019 and 2021.