Bit confused. The article is talking about housing costs. But seems to be refering to cost of renting because it mentions land lords had no pricing power?
Other things being equal and of course they never, surely are a person beginning this period with a massive house and massive mortgage would be ending up with a massive house and almost zero mortgage?
Exactly. The housing costs only refer to rent. I can see how during a period of hyperinflation the relative cost of housing to food would go down, however, the actual value would still go up considerably and provided you had a fix, you'd be quids in.
A more interesting question is how did they then determine the value of land and property relative to incomes when the new currency was introduced?
Weimar Hyperinflation - was a HOUSING a big winner?
in NEWS Commentary, 2021 & Beyond
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Exactly. The housing costs only refer to rent. I can see how during a period of hyperinflation the relative cost of housing to food would go down, however, the actual value would still go up considerably and provided you had a fix, you'd be quids in.
A more interesting question is how did they then determine the value of land and property relative to incomes when the new currency was introduced?