Friday, April 13, 2012

Could the Housing Bubble Reinflate? via The Atlantic

My baseline scenario for the U.S. included a rapid increase in the number of multifamily housing units and a general return to renting.

However, a few factors are combining to make me think that an alternate scenario, one in which the single-family housing bubble returns, is increasingly likely.

First, multifamily starts simply aren't increasing as fast I thought they would. This means that rent pressure will be even more severe, and quite plainly there simply won't be enough apartments to absorb all of the newly forming families.

Second, no permanent solution to the global savings glut has been offered, and with austerity across Europe and deficit cutting on the agenda for the United States, the fundamental problems will only increase.

Read more...Could the Housing Bubble Reinflate? - The Atlantic

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