The Housing Hole

Between the years 2007 and 2009 the housing market saw a huge decline unlike anything that the nation’s economy had ever seen before. The country ended up being in a depression almost as bad as the Great Depression for a few years. In late 2010 the housing market saw a huge rise. Lowered interest rates and higher demands made the housing market increase to endearing levels. After the housing market took a jump, the rest of the components of the economy followed suit. A study done by the Joint Center for Housing Studies of Harvard have noted that the homeownership rate is dropping at a drastic rate. The rate at which single family homes are being constructed also fell to a low rate. The rental market is the main mode of the housing market that has seen a steady increase stated Zeca Oliveira. Landlords have taken the opportunity to raise the prices of renting and renters insurance. Even though rental rates are high the rates are attributing to the biggest increase of renter households in the last decade. Unfortunately, any of the gains that the housing market has seen in the last twenty years means little to nothing now. The national vacancy rate also fell to an extremely low rate. Cost burdened households were on the rise which can lead to more economic problems down the line. Leaders in the economic and housing communities are planning to come together to find a way to get the country out of a housing rut before we get into one.

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