A housing crisis in the material world

[nancylebov]

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.

Comments

[sethg]

We could always pump up demand for housing stock by letting in more immigrants. ("Special offer: if you have enough for a down payment, we'll give you a green card!")

[fidelioscabinet.livejournal.com]

The people who are discussing it are more likely to be addressing it from a crime/social stability/devaluing nearby occupied properties point of view, rather than an economic one, based on what I've seen so far--in other words, they're approaching it as a short-term problem, rather than a long-term availability is usable housing problem. Although it will be a long-term problem pretty damn quick.

[nancylebov.livejournal.com]

I don't know who in general is discussing this sort of thing, but the video I included is definitely about the whole economy, not just the effects on neighborhoods.

[inquisitiveravn.livejournal.com]

I think the costs of maintenance was part of the 72% of demand for goods and services in the economy by households. He didn't say it explicitly, but it has to be in there somewhere.