The “Great Recession” that began in December 2007 affected every American in one way or another. It led to layoffs, bankruptcies, and foreclosures. Although several factors culminated in the recession, the most significant catalyst was the bursting of the housing bubble.
According to the U.S. Census Bureau, housing prices in the U.S. steadily rose between the early 1960s and the early 2000s. The sharpest increase occurred between the years 1998 and 2005, when the median and average costs of new homes ballooned from $152,500 and $181,900 to $240,900 and $297,000, respectively. In 2007, the median and average new housing prices peaked at $247,900 and $313,600.
Ultimately, the stress caused by high housing prices and unwieldily mortgage debt burdens led to the infamous housing bubble burst. By 2010, sta Continue reading