Factors Behind the High Housing Prices in Today's Economy
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Jane Howlett
CoPIs:
Favour Oyelade, Andrew Faria, Gabriel Avila
College:
College of Business and Public Management
Major:
Management
Faculty Research Advisor(s):
Chen Meng
Abstract:
The economic condition around the housing market has been a major topic for Economics study and is relevant to our daily life. The purpose of this research is to discover and explain the factors of the high housing price in today's economy. Homeownership symbolizes wealth in American culture, yet it remains out of reach for many due to prevailing economic conditions.
In this research, we will examine factors like the 2008 financial crisis and the 2020 pandemic. The 2008 financial crisis impacted the housing market which was led by a surplus of homes that seriously overtook demand (Rosen, 2023). The pandemic caused an uprising in people moving away from high population areas to lower populated areas (Bernstien, Tedeschi, & Robinson, 2021). In addition, when inflation peaks, mortgage rates will have peaked (Kaysen, 2022). Inflation is one of the main factors seen in the causation of these high house prices. We aim to provide our comprehensive views in this research for the reasons behind
References
Bernstien, J., Tedeschi, E., & Robinson, S. (2021, September 9). Housing Prices and Inflation .
Retrieved from WH. GOV: https://www.whitehouse.gov/cea/written- materials/2021/09/09/housing-prices-and-inflation/
Kaysen, R. (2022, July 8). What’s Up With the Crazy Housing Market? Retrieved from The New York Times : https://www.nytimes.com/2022/07/08/realestate/housing-market.html
Rosen, P. (2023, September 16 ). The housing market is brutal. These 6 charts show just how bad things are for buyers. Retrieved from Business Insider : https://markets.businessinsider.com/news/commodities/housing-market-mortgage-prices- homes-charts-redfin-property-real-estate-2023-9