Minnesota real estate bubble hits $50 billion, real estate industry hit with $50.3B collapse

The collapse of the Minnesota real-estate bubble has been followed by the collapse of other bubbles across the world, and for the first time ever a Minnesota bubble has become the largest in the world.

The US stock market has fallen nearly 10 per cent since October, while the value of the median home in the state has plunged to $480,000.

Real estate bubbles are often fuelled by unsustainable investments, but Minnesota is one of the most highly regulated states in the country, with only one tax on residential real estate and the property tax is so high that it has created an incentive for speculators.

This is a story from ABC News Queensland, a joint venture between ABC News New Zealand and ABC News.