Jump to ContentJump to Main Navigation
The Economists' VoiceTop Economists Take On Today's Problems$
Users without a subscription are not able to see the full content.

Joseph Stiglitz, Aaron Edlin, and J. Bradford DeLong

Print publication date: 2011

Print ISBN-13: 9780231143653

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231143653.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 26 September 2021

The Menace of an Unchecked Housing Bubble

The Menace of an Unchecked Housing Bubble

Chapter:
(p.288) Chapter 34 The Menace of an Unchecked Housing Bubble
Source:
The Economists' Voice
Author(s):

Dean Baker

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231143653.003.0034

This chapter considers the US housing bubble. Over the last eight years, home prices have risen by almost 50 percent in real terms. The run-up has not been even. In large parts of the country (most of the South and Midwest) there has been little real appreciation in house prices. In contrast, the run-ups in the bubble areas (the West Coast, the East Coast north of Washington, DC, and Florida) have been close to 80 percent in real terms. There has been no change in long-term fundamentals to warrant the level of house prices today. What's more, the sooner the bubble is burst the better: delaying the economic pain will only make it worse. It further argues the Federal Reserve should ensure housing bubbles do not get out of hand. In most parts of the country, housing prices have fallen from their peaks—how far they fall remains to be seen.

Keywords:   U.S. housing market, real estate market, home prices, housing bubble

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .