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In his paper "We Are Not as Wealthy as We Thought We Were," Kevin Erdmann argues that the United States’ $58 trillion residential real estate market misrepresents true economic prosperity. Erdmann contends that only half of this figure constitutes actual wealth in the form of structures; the remainder reflects "rent extraction" caused by policies that restrict new construction. Erdmann identifies three key trends signaling economic regression. First, housing values have risen relative to incomes despite a decline in new construction, meaning prices are inflating on aging, depreciating assets rather than reflecting improved housing stock. Second, the historical norm of older homes "filtering down" to lower-income families has reversed. Due to scarcity, older homes now "filter up" to higher-income tenants, forcing families to pay more for worse housing. Third, this dynamic creates severe inequality. Erdmann notes that as real estate valuations rose between 2015 and 2022, rising rents effectively reduced the real incomes of the lowest-income quintile by 15 percent. Ultimately, Erdmann concludes that high American real estate wealth is not a sign of rising living standards, but the result of a regressive wealth transfer from tenants to owners driven by an artificial housing shortage.