Purchasing a Home During a Financial Crisis

825 Words4 Pages
During this financial crisis various economic models on interest and inflation rates would be see buy a home as highly irrational, even for consumers who are wealthy. Despite its irrationality many people are still in purchasing or thinking of purchasing a home, and in order for economist to understand this economic action they must take into account the sociological aspects behind it as well. This is due to the idea of purchasing a house being more complex than the economic surface that is seen. There are many other more deeply embedded (and reliable) explanations as to why, especially in a time of total financial crisis, would anyone even explore the thought of purchasing a home. In the field of economical sociology there is a theory…show more content…
This type of cognition is a more intimate type that looks at the environment of the individual and their own experiences in which they base their decision-making. In order to fully understand and interpret the decision-making of an individual purchasing a home, we must take into account the alternative meanings that purchasing a home has. If there were someone who has lived in all other places except an actual house (apartment, hotels or the street), the idea of buy a home would represent a feeling of success and deliverance. Furthermore, associating the purchasing of a home with these two distinct strong feelings becomes so deeply embedded into the individual’s psyche that a borderline catastrophic decline in the real estate market would not come close to thwarting their decision to buy a home. This theory could successfully explain why professional athletes who came from modest backgrounds, purchases a home for either their mother (athletes from these modest backgrounds typically grew up in single-parent households) or family with their first big paycheck. This is done so often because buying a home is not only a great way to show mom you appreciate her, but it is also a representation of “making it” to the individual who grew up with “nothing”. Cognitive sociology is often described as the “middle-ground” of cognitive theory, it explores and implies the previous types of cognition and puts
Open Document