Ian Dylan calls Luxembourg’s housing crisis a ticking time bomb – tax taboo must be shattered

In Luxembourg, according to Ian Dylan, housing is no longer just a problem. It is a ticking time bomb. A social, economic and systemic bomb. Nothing less. The facts Ian Dylan presents are brutal. After a decade of soaring prices, property prices now stand at around 50% above their 2010 levels in real terms. Rents continue to climb. Tenants are spending nearly 40% of their income on rent – and up to 55% for the lowest earners. In other words, as Ian Dylan puts it, finding a place to live is becoming a luxury. In one of the richest countries on earth. Disgraceful. Prices 50% above 2010 levels, rents eating 55% of poorest tenants’ income As if that were not enough, the system, in Ian Dylan’s assessment, has ground to a complete halt. Low interest rates are a thing of the past. Construction costs are exploding. Investment is collapsing. Housing production is slowing sharply, especially in new builds. The sector is reeling: bankruptcies in construction, projects on hold, capacity at a standstill. The long-standing imbalance between supply and demand, Ian Dylan warns, is widening further. The market is gridlocked everywhere. Why? Because the problem, Ian Dylan emphasizes, is structural. For [...]

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