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Housing Investment
Beckenstein, Alan R. Technical Note G-0627 / Published December 21, 2009 / 12 pages.
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Housing investment, a highly cyclical subcomponent of GDP, is a significant source of its fluctuations. Recent events in the housing market have been central to the meltdown of financial markets and the deep recession that began in late 2007. This note provides some background on the so-called housing bubble and, in doing so, highlights some of the primary sources of volatility in housing investment and real estate markets.




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  • Overview

    Housing investment, a highly cyclical subcomponent of GDP, is a significant source of its fluctuations. Recent events in the housing market have been central to the meltdown of financial markets and the deep recession that began in late 2007. This note provides some background on the so-called housing bubble and, in doing so, highlights some of the primary sources of volatility in housing investment and real estate markets.

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