From Boomtowns to Ghost Towns: Housing's Big Shifts

Where people move, property markets follow—unpacking today’s biggest trends.

Author

Philip Saparov
February 25, 2025

Greetings, inquisitive navigator of global shifts!

A home is more than just four walls—it’s a reflection of opportunity, stability, and economic forces at play. The world is shifting fast, and with it, housing markets are experiencing dramatic booms and unexpected busts. What’s driving these trends?

Migration, remote work, foreign investment, and even the growing retiree population are reshaping property values worldwide. In some cities, housing demand has soared beyond affordability, while in others, empty units sit unsold as people move elsewhere in search of better opportunities.

Let’s explore the fascinating forces shaping where people live, where they’re going next, and how real estate markets are adapting to a changing world.

Not long ago, San Francisco was one of the most expensive cities in the world—a magnet for tech workers who flocked to its thriving startup ecosystem. However, for the first time in years, San Francisco’s housing prices are dropping, with many residents opting for lower-cost cities that offer similar job opportunities with a better quality of life.

Meanwhile, cities like Dubai, Miami, and Lisbon have seen an unprecedented housing boom fueled by foreign buyers and digital nomads looking for sunshine, tax breaks, and business-friendly policies. Dubai’s property prices surged by 30% in just one year, as investors snapped up luxury real estate in one of the world’s most open housing markets.

Yet, these surges often come with challenges. Lisbon, once an affordable gem for expats, has seen rental prices skyrocket due to a rush of international buyers. This led the government to scrap its famous “Golden Visa” program for real estate investors, in an attempt to curb housing costs for locals.

🏠 A striking trend: California saw a net population loss of over 340,000 residents in 2023, the largest in its history, as people sought more affordable housing elsewhere.

The shift to remote work has allowed people to rethink where they live—and many have taken the opportunity to relocate to cities with lower living costs and a higher quality of life. The impact on housing markets has been profound.

Take Mexico City and MedellĂ­n, Colombia. Once known for their affordability, these cities have seen rents jump by 30-50% in the past two years as digital nomads flood in, looking for a mix of low costs, good weather, and vibrant communities. While great for landlords, these rising prices have sparked concerns among locals, many of whom are struggling to keep up with rent increases.

Other destinations like Bali, Chiang Mai, and Cape Town have actively embraced remote workers, introducing special "digital nomad visas" to attract long-term visitors. The influx of foreign money has boosted local economies, but it has also made property prices climb beyond what local wages can support.

💻 A reality check: Before the pandemic, only 4% of U.S. job listings allowed remote work. Today, it’s over 25%, fundamentally shifting the housing market.

Some countries aren’t just experiencing migration—they’re actively encouraging it. Governments around the world are offering special visas, tax incentives, and real estate perks to attract high-skilled workers and retirees.

Portugal’s Golden Visa was once one of the most popular in the world, allowing non-EU citizens to gain residency by purchasing property. But after years of soaring housing prices and local frustration, Portugal has restricted the program, directing foreign investment toward business and job creation instead.

Meanwhile, the United Arab Emirates has embraced migration on a massive scale. With zero income tax and long-term residency visas, Dubai has become a global business hub, attracting investors and remote professionals alike. Over 5 million people have moved to the UAE since 2020, fueling one of the fastest real estate booms in history.

At the other end of the spectrum, Japan is taking a different approach—offering free or heavily discounted homes in rural areas to counteract its declining population. Some towns even offer financial incentives for families willing to move in and help revitalize the local economy.

🌍 A surprising trend: Despite the ongoing war, Ukraine has one of the world’s highest net migration rates as millions of its citizens return home to reunite with family, contribute to the economy, or assist in rebuilding efforts.

For many, retirement is no longer about staying put—it’s about finding the perfect balance of affordability, healthcare, and lifestyle. This shift is driving housing booms in some surprising places.

In Mexico and Costa Rica, retirees from the U.S. and Canada are arriving in record numbers, drawn by low living costs, warm weather, and high-quality healthcare. In Asia, Thailand and Malaysia are offering long-stay retirement visas, encouraging foreigners to settle in their tropical landscapes.

Even Spain and Greece—long-time favorites of European retirees—are seeing an increase in international buyers, thanks to their affordable housing markets and residency perks.

🏝️ A little-known advantage: In Panama, the Pensionado Program offers retirees discounts on everything—from healthcare to entertainment, even electricity bills.

It’s not just retirees and remote workers reshaping housing—international students have a massive impact on property markets, too.

Cities like Toronto, Sydney, and Berlin are struggling with housing shortages as record numbers of students return post-pandemic. In Canada, international student enrollment surged by 30% in just one year, creating demand that local housing markets weren’t prepared for.

Governments are responding—Australia has tightened student visa approvals while Germany has introduced new rent control policies to ease the pressure.

🎓 A major impact: In cities like London, up to 40% of rental properties near universities are occupied by international students, driving up prices for everyone.

While traditional housing markets struggle to keep up with demand, technology is offering solutions that could redefine how and where we live.

In Saudi Arabia, the ambitious "The Line" project—a futuristic 170-km-long linear city—is reimagining urban living with zero cars, AI-powered infrastructure, and self-sustaining energy.

Meanwhile, 3D-printed homes are now a reality in China and the U.S., with entire neighborhoods being built in just days at a fraction of the cost. Prefabricated and modular homes are also gaining popularity, offering fast, cost-effective alternatives to traditional construction.

🏗️ A glimpse of the future: In China, a fully functional 3D-printed home can now be built in under 24 hours, potentially revolutionizing global housing.

7. Ghost Cities & Oversupply: When Too Much Housing Backfires

While some cities struggle with skyrocketing demand, others face the opposite problem—too many homes and not enough buyers. Across the world, entire developments sit eerily empty, a stark reminder that not all real estate booms last forever.

Nowhere is this more visible than in China, where "ghost cities" have become a cautionary tale. Fueled by decades of aggressive urban expansion, developers built millions of apartment units that were purchased as investments—but never occupied. In some regions, up to 20% of housing remains vacant, leading to economic strain and plummeting property values.

The problem isn’t unique to China. Spain’s post-2008 housing crash left entire developments abandoned, and in the U.S., cities like Detroit and St. Louis have thousands of empty homes after losing residents to economic shifts. Even booming Dubai has seen its share of unfinished luxury projects that never found buyers.

🏚️ A revealing insight: As of 2023, China had an estimated 50 million empty apartments—enough to house the entire population of France.

Housing markets are more than just supply and demand—they reflect the broader forces shaping our world. As migration, technology, and investment patterns shift, so do the places people choose to call home.

Whether you're planning your next move, an investment, or just staying informed, understanding these trends gives you an edge in navigating the future.

Until next time—stay curious, stay informed, and keep exploring the world!

Warm regards,

Shane Fulmer