Is Too Much Money Being Invested In Real Estate?

Why is so much money being invested in residential real estate and is this trend sustainable? Perhaps an answer can be found in at least some of these trends: 1) an over-abundance of wealth in the form of excess cash to invest, 2) Buyers, especially foreigners, lacking the sophistication, training or organization to invest in alternative asset classes, 3) the low barriers to entry in the... [more]

Why is so much money being invested in residential real estate and is this trend sustainable? Perhaps an answer can be found in at least some of these trends: 1) an over-abundance of wealth in the form of excess cash to invest, 2) Buyers, especially foreigners, lacking the sophistication, training or organization to invest in alternative asset classes, 3) the low barriers to entry in the residential real estate market as result of technology and transaction ease, 4) the "trophy" nature of the luxury markets which attracts new types of investors, and 5) the extremely high prices which allow single transactions of significant size Does anyone know of studies showing how much capital has flowed in recent years to real estate, especially residential, as opposed to other asset classes? [less]