Ex-Citibank Trader Warns: Global Asset Bubble Driving Housing Crisis
Stand: August 18, 2025, 04:44 a.m. – London – A former top trader at Citibank is sounding the alarm on the global housing crisis, arguing that the root cause isn’t simply local factors, but a systemic issue of asset inflation fueled by wealth concentration. Gary Stevenson, now a popular YouTube analyst with 1.4 million subscribers, contends that houses and apartments are being treated as assets, driving prices beyond the reach of average earners. This is breaking news with lasting implications for homeowners and renters alike.
From Wall Street to YouTube: A Trader’s Revelation
Stevenson, author of “The Billion Game,” details his journey from a scholarship student to a high-earning Citibank trader. His experience within the financial system has led him to a stark conclusion: the escalating cost of living, particularly in cities like Frankfurt, Munich, and Berlin, isn’t a localized problem. “It is a global phenomenon and must therefore also have a global cause,” he explains in his latest video, filmed in his characteristic kitchen setting – a deliberate choice to make complex economic concepts accessible to everyone.
Beyond Local Blame: The Global Perspective
The common tendency to blame local mayors or authorities for the housing crisis is, according to Stevenson, a misdirection. He argues that a simultaneous crisis unfolding in global metropolises – from Los Angeles to Tokyo – points to a much larger, systemic issue. While acknowledging that living costs are often lower in rural areas, his focus remains on the forces driving up prices in major urban centers. This isn’t about a lack of building; it’s about the fundamental nature of housing as an investment.
The Assetization of Housing: A Dangerous Trend
Stevenson’s core argument centers on the “assetization” of housing. He posits that homes and apartments are increasingly viewed not as places to live, but as vehicles for wealth accumulation, like gold or stocks. Data from the Federal Statistical Office supports this, showing a 94% increase in German property prices between 2010 and 2022, far outpacing the 25% inflation rate during the same period. The price of gold has also surged, rising from under €1000 to around €2800 per troy ounce in the last decade, while the MSCI World index has delivered an average return of 9.7% annually since 1975.
Wealth Concentration and the Housing Squeeze
The key, Stevenson argues, is simple: “If you give enough people, they buy assets.” This increased demand, coupled with limited supply, drives up prices. A recent analysis confirms this trend, revealing a nearly 700% increase in investments in European residential property between 2009 and 2020, exceeding €60 billion. Crucially, 40% of rental income now flows directly to shareholders of large housing companies, highlighting the profit-driven nature of the modern housing market. This financialization, Stevenson believes, is exacerbating the crisis, making homeownership and even renting increasingly unaffordable for the middle class.
Is More Building the Answer? Experts Weigh In
While increased construction is often proposed as a solution, Stevenson is skeptical. He argues that simply building more homes won’t address the underlying issue of affordability when wages aren’t keeping pace with asset price inflation. Christian Colonel from the Institute of German Economy (IW) offers a more nuanced perspective, suggesting that increased construction can at least *cushion* the price increases, preventing them from rising as rapidly. Volksbanken also predict continued increases in real estate prices.
A Radical Solution: Taxing Wealth
Stevenson consistently advocates for higher taxes on the wealthy as a potential remedy. He believes that without such measures, the middle class will continue to erode under the weight of rising housing costs. His analysis points to Vienna as a potential model, where a large public sector of affordable rental apartments helps maintain livability without prioritizing profit. Over 200,000 apartments in Vienna are publicly owned and rented at below-market rates, contributing to the city’s consistently high ranking as one of the most livable in Europe.
The debate surrounding the housing crisis is complex, but Gary Stevenson’s insights offer a crucial perspective: the problem isn’t just about bricks and mortar, it’s about the fundamental dynamics of wealth and asset allocation. Understanding this shift is the first step towards finding sustainable solutions and ensuring that housing remains a right, not just a privilege. Stay tuned to Archyde for continued coverage of this evolving story and expert analysis on the forces shaping our economic future.
