Harvard University: These Are The Fundamental Reasons Behind The Neverending Housing Crisis


Photo: AP

The housing crisis is far from over, but the surge in renters is leaving the country’s weakest even more pinched, according to a new report from Harvard University.The university’s researchers explain that many of the key demand drivers for the housing market have evaporated: household formation is low, immigration is in decline, and the boomers may be stuck in their old homes.

And while many have moved to rent, they are now being squeezed by higher prices both for rentals and for utilities. It’s not enough yet, however, to drive more demand for homes because prices are still to high for many.

People aren't settling down, getting married, and buying homes like they used to.

Immigration is also in decline, reducing the potential amount of buyers on the market.

Or, with weak earnings and declining home prices and demand, they could be forced to stay put.

Meanwhile, renting is getting more popular

Many young adults are choosing to live at home.

Ironically, the tighter rental market is hampering affordability

And those low income individuals are also being pinched by rising fuel costs.

And while the home price to income ratio has returned to its average...

Affordability of properties is becoming a bigger problem for more people.

Some good news: Distressed home buyers should provide some support to home improvement stores.

And yet, there may be some life in the housing market...

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