How was the housing market during the urbanization periods in the late 80s, early 90s?
( including condition, prices, supply, and demand) ?
As we all know, Urbanization is the turning point of the 20th century, where people are moving to cities more rapidly than ever before. Cities are blooming with citizens as a result creating overpopulation, and heavily affecting the housing market. The scale of supply and demand over time lean on one side where there are two many people that housing was not enough. Ultimately driving the prices and expenses sky high, people who cannot afford places to stay have to share with multiple individuals, even families in terrible conditions, including with the rise of diseases, lack of hygiene, pollution, and even crime rate.
Probable cause of such a damaging and terrible situation?
The American universal problem during the early 90s as the percentage of cities rose from 20% to almost 70% in a couple of decades, as industries in each city developed their own characteristics, for example in Chicago, it was meat-packing and it was steel in Pittsburgh. Farmers and young people do almost everything to find their way to the cities where the economy, the opportunity for jobs, and wages are skyrocketing. Though deep under this issues have always been about the separation of social class, inequality, and racial divisions among the society of America.
How did experts influence individuals, and authorities to find out ways to solve such a large concern over time?
While the housing market crash at the time was a result of the shocking transition of the population. Though not much action was needed in order to fix the situation, over time with the economic growth following the development of life-changing technology like electronic lighting, telephone, rails, canals, and other public transportation all contribute to the betterment of living conditions and standards of citizens in the city.
How is the housing market in 2021 a bubble ready to pop, just the same as before?
As we step into 2021, statistics have proven that inventories of the housing industry are falling over 33% than last year and are recently holding the all-time low of supply flow. There are multiple reasons for this to happen, for example we just went through a pandemic, the economy is starting to recover, inflation rate has become more alarming, more people are willing to hold on to assets rather than the dollar itself. Ultimately leads to more corporations as well as individuals entering the market. House prices raises, foreclosure for property raises along with the decrease in mortgage rate, experts are saying that if we continue this trends over time, will set us up for a housing crisis alike one experienced in 2008
Will we be able to seek answers to this difficult question, and will the old solution still be valid after more than 20 years?
Including historical experience, while the housing market is intense as it has been for the time being, it is almost impossible for us to predict nor to compose precise solutions for the ongoing issues. Though in the past we have witnessed situations that tend to improve overtime, therefore we can always hope for the best.