Housing Inequality
How housing has become the defining driver of wealth inequality in the 21st century, from London to Lagos.
Housing as Wealth Engine
In most developed countries, housing is the largest component of household wealth. For the middle class, home equity often represents 60-70% of total net worth. This means that housing markets are the primary mechanism through which wealth is built or denied. When housing prices double in a decade -- as they did in many global cities between 2010 and 2022 -- homeowners see their wealth surge while renters fall further behind.
The result is a growing divide between those who own property and those who do not. In the UK, the average home costs roughly eight times the median salary, up from four times in the 1990s. Young people, who have not yet accumulated deposits, are increasingly locked out of homeownership. Intergenerational inequality compounds: those whose parents own property receive help with deposits or inherit housing wealth, while those from renting families start from zero.
