U.S. Housing Price Boom-Busts in Historical Perspective

Networks Financial Institute Policy Brief No. 2005-PB-02

19 Pages Posted: 12 Aug 2006

See all articles by Michael D. Bordo

Michael D. Bordo

Rutgers University, New Brunswick - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: October 2005

Abstract

There is present concern that housing prices in the U.S. are undergoing an unsustainable boom, which some refer to as a bubble, that will end in a bust with dire consequences for the real economy. This paper considers whether this dire scenario is likely to happen. My reading of the literature on the housing boom and study of U.S. economic history makes me skeptical. The U.S. has had a long history of housing booms which were regional or local. It never experienced a national boom-bust and this episode will likely repeat the experience of the past.

Keywords: housing prices, boom, bust, bubble, cycle

Suggested Citation

Bordo, Michael D., U.S. Housing Price Boom-Busts in Historical Perspective (October 2005). Available at SSRN: https://ssrn.com/abstract=923865 or http://dx.doi.org/10.2139/ssrn.923865

Michael D. Bordo (Contact Author)

Rutgers University, New Brunswick - Department of Economics ( email )

New Brunswick, NJ
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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