The housing boom is screwing up the economy.
Friday, September 16, 2005
America's housing boom is causing an enormous misallocation of resources.
"The popular argument that high house prices are justified by low interest rates has also been stretched to its limit. The affordability of houses for first-time buyers, measured by the ratio of median income to median mortgage payments, is at its most daunting since 1989—the market's previous peak, after which average nationwide home prices failed to keep pace with inflation for five years."The Economist
posted by author @ 6:54 PM,
