Real Estate Crisis

Government legislators for many decades have given undo importance to real estate. That emphasis led, in part, to the real estate crash 2007-2008.

A significant amount of money created by the banking system has been funneled into the real estate market. That monetary expansion led to price distortions in the real estate market. Those distortions have, over the years, led to excesses in real estate building in the market prices in real estate.

Added to the distortions caused by monetary expansion, the government has set up facilities that favor the development of real estate.

These forces in combination caused a decades long expansion in the real estate market led to a crescendo in the first part of the 21st-century. That extended boom set the stage for the severe collapse in the real estate market suffered in 2007-2008.

At some time The Free Market Center may post a page dedicated to real estate; for now we will focus on its role in economic crises.