The Housing Market And Housing Markets Essay

766 Words Dec 16th, 2014 4 Pages
One of the notable issues with the U.S housing market is the extent to which the Government failed to stimulate home ownership rates in the long run. Historical trends in the U.S home ownership rates show stagnant growth in home ownership after the early 1960’s. The Federal Reserve Bank of St. Louis Review indicated that homeownership rates remained relatively constant from 1965 to 1995, despite a wide variety of government policies aimed at stimulating home ownership (Federal Reserve Bank of St. Louis Review 2006). Following 1995, the U.S home ownership rates indicated significant improvements. According to the U.S Statistical Abstract, levels of home ownership rates during the period 1995 to 2005 indicated a record high for the U.S housing market (Chambers, Garriga, & Schlagenhauf 2008). Matthew Chambers, a professor for Towson University, published a study that analyses the increase in U.S aggregate homeownership following 1995. He begins his analysis by providing insight on two factors that contributed to the boom in home ownership.
Dr. Chambers examined two determining factor which accounted for a significant percent change in aggregate homeownership following 1995. The first determinant examined was the changes in demographic factors. He found that the long run importance of demographic factors only accounted for a projected 23 percent change in aggregate home ownership (Chambers, Garriga, & Schlagenhauf 2008). Following, he analyzed the effect that non-demographic…

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