Why Housing Price Is So High

The housing crisis of the late 2000s rocked the economy and changed the landscape of the real estate business for years to come. Decades of people purchasing houses unfordable houses and properties with lenient loans policies led to a collective housing bubble. When the banking system faltered and the economy wilted, interest rates were raised, mortgages increased, and people lost their jobs amidst the chaos. This all culminated in tens of thousands of American losing their houses to foreclosures and short sales, as they could no longer afford the mortgage payments on their homes. The United States entered a recession and homeownership no longer appeared to be a feasible goal as many questioned whether the country could continue to support a middle-class. Former home owners became renters and in some cases homeless as the American Dream was delayed with no foreseeable return. While the future of the economy looked bleak, conditions gradually improved. American citizens regained their jobs, the United States government bailed out the banking industry, and regulations were put in place to deter such events as the mortgage crash from ever taking place again. The path to homeowner ship has been forever altered, as loans in general are now more difficult to acquire and can be accompanied by a substantial down payment.

Canada 's housing market is at an all-time high, they are known in Vancouver for having the most expensive housing market. This expensive market is not just a Vancouver problem, it is an issue growing throughout the nation and is depriving the average citizen to be able to purchase a house in their lifetime. There is a major issue with the state of the market and how it affects the current citizens. Issues have been rising where the average wage in Vancouver is estimated at seventy-one thousand per family household, according to the Vancouver Sun (2014), yet the average costing home as reached between five hundred thousand in the municipality to over one million within Vancouver, according to articles by Beth Lindsay (2015) of the Vancouver Sun, and Troy Landereville (2015) of The Maple Ridge Times.

Within the past decade, Canada - specifically ontario, has seen and experienced a rapid increase in its housing market. Although some speculate a crash nearing, its strong growth in Ontario has become one of this decade’s largest issues. During the year of 2016 the average price of a home in the metropolitan area was $688,011, however, prices have increased by 33% in 2017 making the average home worth $916,000 dollars. This issue presents many difficulties as it affects Canada’s economy, it’s residents, immigrants, and more. Although some have tried to pass bills in order to reverse the increase, the presented plans are much worse. Take for example, Kathleen Wynne's proposed “foreign buyers tax”. With a plan as such being passed, all of

Despite this fact, home ownership in the economic and social landscape of today is a big responsibility. Economically, most millennial most likely cannot afford to own their own home. A mortgage is a much larger payment than rent for an apartment. Similarly, owning a home means paying for gas, electric, water and furniture to fill a house; this also includes any grounds upkeep depending on the home’s location and property taxes. Socially, Millennials seem to be straying away from owning a home because it

The typical series of big events in life include graduating high school, going to college, finding a significant other, graduating college, getting married, and buying a home. Although these events happen in a variety of different patterns nowadays, a major bump in the road is occurring when looking to buy a home, especially in Colorado Springs. This article highlighted the challenges that the millennial generation is facing when reaching this stage in life. "Student loan debt is more than $1.2 trillion, and nearly 70 percent of college graduates have some student loan debt, according to the Federal Reserve (pg 1)." These college graduates now need to add loan payments to their monthly debts, leaving them with even less disposable income. Not

The United States will always recall autumn of 2008 as a time of financial terror, and rightly so. After the stock market crash, millions of Americans, previously unaware of the brewing crisis, lost their businesses, their jobs, and their homes. Even now, we still are in a period of recovery from the economic turmoil of that year.

Thesis: Buying your first home can be an enjoyable, exciting and profitable experience given specific knowledge of the process and a basic understanding of the market place.

Macroeconomics is an excellent tool for the analysis of the housing industry as something like a capital good, as a home is considered to be, cannot easily be studied in a short-term platform. Real estate is a good that costs several times more than an average persons annual income, in the United States that number is typically 7 times as much, and in the United Kingdom that number is 14 times as much. Several factors of both supply and demand directly impact the housing market on a macroeconomic scale. (Business Economics, 1)

In the article “How to fix wealth inequality”, Hecht (2014) raises houseownership as a factor to minimise wealth inequality, and brings up an issue over how the poor are more affected than the rich, while listing several factors that deter poor people from getting homeownership. According to Hecht (2014), despite declining house prices and interest rates, homeownership is out of reach for low income families because they are vulnerable financially in post-recessions. Moreover, there is ongoing progress on reducing education fees so that young people could graduate without being saddled with debts which deter them from having houseownership in the future. Throughout this article, he highlighted the importance of houseownership as being an asset which can be passed from one generation to the next thus reducing the economic disparity.

Changes in market conditions make buying a house difficult. The percentage and reasons why young adults are living with parents show

We, more than any other age, want stability. No one wants to see that in us because it’s a tough fight to get it, but we want to self-manage and have financial certainty. Houses mean something entirely different to us than to others. We don’t see houses as necessities or obligations. We don’t take mortgages lightly or settle into some place we’re not happy with. The real estate market has some new customers who are taking their choices seriously. To us, that house has to be earned, and it’s also an investment. We don’t feel an obligation to settle into that house; we want it because of what it offers us. That house can grant both stability and financial security. Making an investment like that is something that overjoys a generation still shaken from the uncertainty of the market crash. When we make investments, we become adults. There is nothing scarier or more exhilarating than stepping away from an age where we can’t control the world around us into being at the wheel. The housing market may not have the same customers as it once did, but these customers are ones who aren’t taking any decisions lightly. Stepping from dorm to apartment to renting and, finally, to owning a home is a terrifying journey. Nobody should take it lightly, but we should take it. We’re ready to take on mortgages and handle the economy in a new

A core tenet of the American dream is home ownership. At the turn of the century, young adults were buying homes. However, since the bursting of the housing bubble and the resulting mortgage banking crash, the rate of younger Americans purchasing a home has fallen sharply. Many millenials – those born between 1981 and 1997 – want to own a home, but doing so is financially beyond their reach. Half of recent college graduates have no full-time job (Kadlec, 2014), and those that do may be described as underemployed. The increasing diversity of that demographic is positively correlated with the downward trend in personal economic health (Drew, 2015; Myers & Simmons, 2017). The worsening financial strain leads young adults to postpone marriage and family, which also reduces the need for them to own a home. In fairness, the problem faced by millenials is only a microcosm of that faced by the populace as a whole. Home ownership for the population as a whole is the lowest it has been in over 20 years (Fry & Brown, 2016).

Homeownership is a double-edged sword. It is the “American Dream” to one day own a house. Compared to their predecessors, Millennials are seeing the advantages and disadvantages of homeownership at an earlier age.  These early generations believed owning a house was the cherry-on-top to being an all-around American and achieving the “American Dream”. As a cynical generation who grew up with information at our fingertips and the world falling around us, millennials see homeownership differently. “The cautious and conservative approach to home buying displayed by millennials is driven by the fact their outlook on life was shaped by a number of bad things when they were young—the terrorist attack on the World Trade Center in 2001, the 2008 financial crisis, the housing bust with mass foreclosures and a weak recovery that has so far provided incomes below that of prior generations” (Stowe England, 36). We learned that the world was not fair and that it is time to redefine the “American Dream” to reflect our current economic society.

According to Wikipedia a housing bubble is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline. Four years into the housing bubble downturn, much of the country remains hopelessly confused about what happened, why it happened and who is to blame. In my research paper I will try and demonstrate what a housing bubble is, some of the reasons for the bubble, was it preventable, how it kept growing, how it burst and how it has affected our economy.

China is one of the major economical players in today’s international market. China’s economy is the “seconds largest in the world after the United States” (Joseph, 63). This is a striking achievement due to fact that China is a “developing country”. China has achieved a great amount of success through the collaboration of political and economical regimes. The economical growth in China led to “one of the biggest improvements in human welfare anywhere at anytime” (Kristof, 15). Currently, China is experiencing a real-estate bubble. This eventually will hit a climax, disrupting the real-estate market within China. This real estate bubble that China is undergoing is considered one of the "biggest housing