Real Estate Explains Aggregate But Not Top Wealth

Real estate is central to the rise in the aggregate wealth-to-income ratio (especially in Europe and Japan, less so in the US), but it does not explain the distribution at the top: since the middle class holds mostly real estate while the top holds financial and business assets, rising real-estate prices would actually reduce top wealth shares—yet top wealth shares have risen, so the real-estate argument cannot explain top inequality, where billionaire wealth requires other explanations.