Speaking specifically about the US landlord/investor portfolio equity migration, these are people with low time preference by default. They are not inclined to jump from one lifeboat to another until the other is proven and necessary, or the diversification is warranted; and even then it’s not a leap but a gradual calculated migration of equity. Many of these people won’t risk a migration at all, and will die first, leaving the portfolio to the children to rebalance. My perspective tells me that it takes five to ten years for the migration to really start, and I suspect it takes around 8 to 12 years for there to be a momentum that sizably impacts the real estate market, and 20 to 25 years for it to find a new equilibrium between the asset classes. There are markets that will get impacted more quickly than real estate. It’s just slower than we think.

But for US individuals as homeowners, if you want to buy for you to live in it, and you just can’t yet swing it, just stack sats, focus on earnings and spend way less than you earn while increasing earning and stacking sats. Patience and sats will cure a great deal with time.