Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

There is No Housing Bubble in the USA

There is No Housing Bubble in the USA Abstract There is no evidence of a housing “bubble” in the United States and housing demand should stay strong for years to come. Three major factors lead to this conclusion. First, the 77 million baby boomers are approaching the peak home ownership ages of 65-75 (over 83.0 percent versus a national average in 2004 of 69.0 percent). Second, immigrants, a growing share of the U.S. population, tend to buy houses ten years later than people born in the United States of the same income group and family size. Third, mortgage rates are not likely to go high enough (8.0 percent or more for 30-year fixed rate mortgages) to put a crimp in demand. Despite some areas of concern, overall homeowners' equity is at record levels above $9 trillion. Delinquencies are still less than one percent of mortgages outstanding. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Business Economics Springer Journals

There is No Housing Bubble in the USA

Business Economics , Volume 40 (2): 7 – Apr 1, 2005

Loading next page...
 
/lp/springer-journals/there-is-no-housing-bubble-in-the-usa-BzPxRo1B5g

References (1)

Publisher
Springer Journals
Copyright
2005 National Association for Business Economics
ISSN
0007-666X
eISSN
1554-432X
DOI
10.2145/20050203
Publisher site
See Article on Publisher Site

Abstract

Abstract There is no evidence of a housing “bubble” in the United States and housing demand should stay strong for years to come. Three major factors lead to this conclusion. First, the 77 million baby boomers are approaching the peak home ownership ages of 65-75 (over 83.0 percent versus a national average in 2004 of 69.0 percent). Second, immigrants, a growing share of the U.S. population, tend to buy houses ten years later than people born in the United States of the same income group and family size. Third, mortgage rates are not likely to go high enough (8.0 percent or more for 30-year fixed rate mortgages) to put a crimp in demand. Despite some areas of concern, overall homeowners' equity is at record levels above $9 trillion. Delinquencies are still less than one percent of mortgages outstanding.

Journal

Business EconomicsSpringer Journals

Published: Apr 1, 2005

Keywords: economics, general; political economy/economic systems; business and management, general

There are no references for this article.