nancylebov (nancylebov) wrote,

A housing crisis in the material world

This is a prediction of a 12-to-18 month recession from back in April. Maybe we're more than halfway through-- I don't know what he's predicting now.

In any case, Roubini talks about the housing stock as though once a house is built, it's just there. Actually, neglected houses deteriorate, with the speed depending on the climate and the quality of construction.

In any case, if people are evicted or they leave their houses to get out from under their mortgages or they can't afford to make repairs, how hard is this likely to hit the housing stock and how is this likely to affect the economy? I haven't seen anyone discuss this.

Addendum: I bet the houses built towards the end of the boom are of inferior construction.

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