It is estimated in the last five years Chinese investors have poured over $93 billion into the United States residential real estate market targeting high-end housing sectors. I analyze the implications of the investment and how it has affected the Bay Area housing prices. In order to find out why large outflows are targeting the United States I compare China’s economy with Japan’s economy in the late 1980’s when Japanese investors invested over $300 billion into high profile real estate properties. I find many similarities, suggesting China has a bubble economy such as Japan before the lost decade. To combat their bubble, China has implemented new restrictions on capital outflows in order to stabilize their volatile markets. In terms of the Bay Area real estate market I gathered evidence a recession is imminent due to the demand falling for high-end housing. The housing market mirrors economic health and indicates whether an economy is in a boom or bust.
| Identifer | oai:union.ndltd.org:CLAREMONT/oai:scholarship.claremont.edu:cmc_theses-2561 |
| Date | 01 January 2017 |
| Creators | Anderson, Erik Michael |
| Publisher | Scholarship @ Claremont |
| Source Sets | Claremont Colleges |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | CMC Senior Theses |
| Rights | © 2016 Erik Michael Anderson |
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