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Housing Is Back, But the American Dream Isn’t

Bloomberg, August 21, 2018, by Noah Smith.

Surging prices, tight lending standards and Nimbyism keep the young and poor out of the market. “[…]”

The housing market has made a remarkable — if partial — recovery since the disaster that befell it 10 years ago. In the years since the crisis, the market has recouped about two-thirds of the value it lost in the crash: “[…]”

But unlike in the early 2000s, when housing became a vehicle for broad-based middle-class wealth, today’s bull market is shutting out many lower-earning and younger Americans. This is partly because of policy choices. But it also illustrates some of the pitfalls of relying on housing as the pillar supporting a country’s middle class. “[…]”


Read the full article here