Are Housing Prices, Household Debt, and Growth Sustainable?
AbstractRising home prices and low interest rates have fueled the recent surge in mortgage borrowing and enabled consumers to spend at high rates relative to their income. Low interest rates have counterbalanced the growth in debt and acted to dampen the growth in household debt-service burdens. As past Levy Institute strategic analyses have pointed out, these trends are not sustainable: Household spending relative to income cannot grow indefinitely.
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Bibliographic InfoPaper provided by Levy Economics Institute, The in its series Economics Strategic Analysis Archive with number sa_jan_06.
Date of creation: Jan 2006
Date of revision:
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Web page: http://www.levyinstitute.org
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-11 (All new papers)
- NEP-MAC-2006-03-11 (Macroeconomics)
- NEP-PKE-2006-03-11 (Post Keynesian Economics)
- NEP-URE-2006-03-11 (Urban & Real Estate Economics)
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