Housing Economists Predict Slow Growth
September 29, 2009 – The fundamentals that drove the increase in housing values for the last century – increasing population, incomes, and household wealth – may not follow in the United States in the future. Some housing experts speculate this will change the economics of homeownership.
Over the next few decades, “We can expect a gradual rise [in home values], but not the bonanza we’ve become accustomed to between the end of World War II and 2006, and especially the last 20 years,” says Robert Reich, public policy professor at UC Berkeley and U.S. Labor secretary in the Clinton administration.
The reasons for the change include the absence of pent-up demand that followed the Great Depression and World War II and the aging of the baby boomers who carried that housing demand forward, says housing consultant Thomas Lawler.
