From the course: Economics for Everyone: Housing Markets in Crisis

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Regional dynamics

Regional dynamics

From the course: Economics for Everyone: Housing Markets in Crisis

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Regional dynamics

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- Every housing market is a local market. And that means how that local economy is functioning and the nature of the housing in that region will be really critical to the value of the homes and whether that market will continue to boom or could bust and go into crisis. If we think about industries that tend to have big swings, think about something like tourism and travel. During recessions we typically see downturns in tourism demand. So cities like Las Vegas and Orlando, as well as New Orleans could see their home prices fall sharply during periods where people are spending less disposable income to travel and enjoy tourism. But during good years where people have more money, tourism booms. That means that those kinds of markets could surge and you could see a big uptick in prices. These kinds of swings are normal in those markets but in almost every market, there are certain regional dynamics that can play out. If…

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