The term housing crisis refers to acute problems with the provision or market for shelter and lodging. These include shortage and affordability crises as well as financial crises related to the real estate sector.
130-495: Following the first definition, the term "housing crisis" or "affordability crisis" is currently used in the United States and other countries to refer to widespread shortages of housing in certain regions where people want to live. These shortages, caused in part by regulatory barriers to new construction, have led to a rise in homelessness, housing insecurity, and housing costs. Its different manifestations indicate that there
260-434: A run on the shadow banking system that began in mid-2007, which adversely affected the functioning of money markets. Examples of vulnerabilities in the private sector included: financial institution dependence on unstable sources of short-term funding such as repurchase agreements or Repos; deficiencies in corporate risk management; excessive use of leverage (borrowing to invest); and inappropriate usage of derivatives as
390-745: A "classic" boom-bust credit cycle was a narrowing of the difference between subprime and prime mortgage interest rates (the "subprime markup") between 2001 and 2007. In addition to considering higher-risk borrowers, lenders had offered progressively riskier loan options and borrowing incentives. In 2005, the median down payment for first-time home buyers was 2%, with 43% of those buyers making no down payment whatsoever. By comparison, China has down payment requirements that exceed 20%, with higher amounts for non-primary residences. To produce more mortgages and more securities, mortgage qualification guidelines became progressively looser. First, "stated income, verified assets" (SIVA) loans replaced proof of income with
520-457: A "statement" of it. Then, "no income, verified assets" (NIVA) loans eliminated proof of employment requirements. Borrowers needed only to show proof of money in their bank accounts. "No Income, No Assets" (NINA) or Ninja loans eliminated the need to prove, or even to state any owned assets. All that was required for a mortgage was a credit score. Types of mortgages became more risky as well. The interest-only adjustable-rate mortgage (ARM) allowed
650-414: A "willful disregard" for a borrower's ability to pay. Nearly 25% of all mortgages made in the first half of 2005 were "interest-only" loans. During the same year, 68% of "option ARM" loans originated by Countrywide Financial and Washington Mutual had low- or no-documentation requirements. At least one study has suggested that the decline in standards was driven by a shift of mortgage securitization from
780-453: A balance, up from 6% in 1970. Free cash used by consumers from home equity extraction doubled from $ 627 billion in 2001 to $ 1,428 billion in 2005 as the housing bubble built, a total of nearly $ 5 trillion over the period. U.S. home mortgage debt relative to GDP increased from an average of 46% during the 1990s to 73% during 2008, reaching $ 10.5 (~$ 14.6 trillion in 2023) trillion. From 2001 to 2007, U.S. mortgage debt almost doubled, and
910-424: A building boom and eventually to a surplus of unsold homes, which caused U.S. housing prices to peak and begin declining in mid-2006. Easy credit, and a belief that house prices would continue to appreciate, had encouraged many subprime borrowers to obtain adjustable-rate mortgages . These mortgages enticed borrowers with a below market interest rate for some predetermined period, followed by market interest rates for
1040-668: A central office which became known as the Census Office. Several acts followed that revised and authorized new censuses, typically at the 10-year intervals. In 1902, the temporary Census Office was moved under the Department of Interior , and in 1903 it was renamed the Census Bureau under the new Department of Commerce and Labor . The department was intended to consolidate overlapping statistical agencies, but Census Bureau officials were hindered by their subordinate role in
1170-658: A compendium where the states and territories were grouped into five "great division", namely the Middle, New England, the Northwestern, the Southern, and the Southwestern great divisions. Unsatisfied with this system, De Bow devised another one four years later, with states and territories grouped into an Eastern, Interior, and Western "great section", each divided into a northern and southern half called "divisions". In
1300-426: A distinct housing crisis affecting these groups. Even regions with relatively abundant housing supply and low rates of homelessness, such as Mississippi, face challenges with street homelessness due to factors like addiction, as well as issues with housing quality. The affordable housing gap is a socio-economic phenomenon characterized by the scarcity of affordable housing relative to the demand for it. This disparity
1430-458: A generation more skeptical of the ability of democracy to deliver results. By the 2020s, the United States has faced a growing housing crisis defined by shortages of housing that differ in scope and effect depending on region or segment of the population. The housing shortage has been cited as a major factor in inflation in the US, with Katy O'Donnell of Politico arguing that housing shortages were
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#17327902938171560-448: A ledger. Beginning in 1970 information was gathered via mailed forms. To reduce paper usage, reduce payroll expense and acquire the most comprehensive list of addresses ever compiled, 500,000 handheld computers (HHCs) (specifically designed, single-purpose devices) were used for the first time in 2009 during the address canvassing portion of the 2010 Decennial Census Project. Projected savings were estimated to be over $ 1 billion. The HHC
1690-819: A long-term trend of rising housing prices had encouraged borrowers to assume risky mortgages in the anticipation that they would be able to quickly refinance at easier terms. However, once interest rates began to rise and housing prices started to drop moderately in 2006–2007 in many parts of the U.S., borrowers were unable to refinance. Defaults and foreclosure activity increased dramatically as easy initial terms expired, home prices fell, and adjustable-rate mortgage (ARM) interest rates reset higher. As housing prices fell, global investor demand for mortgage-related securities evaporated. This became apparent by July 2007, when investment bank Bear Stearns announced that two of its hedge funds had imploded. These funds had invested in securities that derived their value from mortgages. When
1820-423: A number of years. Causes proposed include the inability of homeowners to make their mortgage payments (due primarily to adjustable-rate mortgages resetting, borrowers overextending, predatory lending , and speculation), overbuilding during the boom period, risky mortgage products, increased power of mortgage originators, high personal and corporate debt levels, financial products that distributed and perhaps concealed
1950-533: A number that is believed to have risen to 12 million by November 2008. By September 2010, 23% of all U.S. homes were worth less than the mortgage loan. Borrowers in this situation have an incentive to default on their mortgages as a mortgage is typically nonrecourse debt secured against the property. Economist Stan Leibowitz argued in the Wall Street Journal that although only 12% of homes had negative equity, they comprised 47% of foreclosures during
2080-455: A paradox caused by the higher prices of newer homes, tax benefits given to long-time owners, higher interest rates, and low supply of appropriately-sized housing caused by restrictive zoning that prohibits accessory dwelling units or requires single-family homes . As of 2024, this shortage is estimated to be between 4 and 7 million homes, resulting in rents rising 30% since 2017. In addition to market-wide housing shortages in certain regions of
2210-418: A path intermediate between these two. Housing affordability crises have especially hurt the finances of Millennials and Generation Z , who entered a more competitive housing market, resulting in paying a higher proportion of income towards housing costs. Politico suggests that in many countries this has allowed populist politicians to stoke anti-immigrant sentiment among younger voters and has resulted in
2340-402: A record level of nearly 40% of homes purchased were not intended as primary residences. David Lereah, National Association of Realtors 's chief economist at the time, stated that the 2006 decline in investment buying was expected: "Speculators left the market in 2006, which caused investment sales to fall much faster than the primary market." Housing prices nearly doubled between 2000 and 2006,
2470-678: A series of measures to stabilize the financial system, including the Troubled Asset Relief Program (TARP) and the American Recovery and Reinvestment Act (ARRA). The collapse of the United States housing bubble and high interest rates led to unprecedented numbers of borrowers missing mortgage repayments and becoming delinquent. This ultimately led to mass foreclosures and the devaluation of housing-related securities . The housing bubble preceding
2600-438: A tightly controlled duopoly to a competitive market in which mortgage originators held the most sway. The worst mortgage vintage years coincided with the periods during which Government Sponsored Enterprises (specifically Fannie Mae and Freddie Mac) were at their weakest, and mortgage originators and private label securitizers were at their strongest. In a Peabody Award -winning program, NPR correspondents considered why there
2730-454: A tool for taking excessive risks. Examples of vulnerabilities in the public sector included: statutory gaps and conflicts between regulators; ineffective use of regulatory authority; and ineffective crisis management capabilities. Bernanke also discussed " Too big to fail " institutions, monetary policy, and trade deficits. During May 2010, Warren Buffett and Paul Volcker separately described questionable assumptions or judgments underlying
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#17327902938172860-481: A total annual income exceeding 600,000 rupees) face a shortfall of 0.82 million units. Auckland quickly boosted supply and slowed the increase in rents and home prices by loosening constraints on the construction. Auckland saw rents grow more slowly than in other parts of the country and more slowly than incomes since it started reforming its housing laws in 2013. As of July 2024, Ryan Greenaway-McGrevy estimated that rents were 28% lower than they would have been without
2990-672: A vastly different trend from the historical appreciation at roughly the rate of inflation. While homes had not traditionally been treated as investments subject to speculation, this behavior changed during the housing boom. Media widely reported condominiums being purchased while under construction, then being "flipped" (sold) for a profit without the seller ever having lived in them. Some mortgage companies identified risks inherent in this activity as early as 2005, after identifying investors assuming highly leveraged positions in multiple properties. One 2017 NBER study argued that real estate investors (i.e., those owning 2+ homes) were more to blame for
3120-494: A year or two of appreciation. As a result of the depreciating housing prices, borrowers' ability to refinance became more difficult. Borrowers who found themselves unable to escape higher monthly payments by refinancing began to default. As more borrowers stopped making their mortgage payments, foreclosures and the supply of homes for sale increased. This placed downward pressure on housing prices, which further lowered homeowners' equity . The decline in mortgage payments also reduced
3250-700: Is a combination of strong and growing demand for housing in desirable areas in conjunction with tight long-run supply constraints, both physical and man-made regulatory ones." Although major cities around the world face housing shortages, leading to the use of the term "Global housing crisis," substantial variation exists across countries and across planning systems. Among developed countries, for example, cities in Japan have relatively abundant and affordable housing for their size, which some have attributed to nationalized control of zoning and easy and fast permitting for housing construction. Most English-speaking countries, on
3380-401: Is a strand of the urban economics literature, which highlights the importance of local long-run supply constraints, especially land use restrictions, in conjunction with local longrun demand growth, as crucial determinants of high and growing house costs. The second strand emphasizes macroeconomic factors and financing conditions. It argues that a unique macroeconomic environment with a decline in
3510-666: Is allocated to communities for neighborhood improvements, public health , education, transportation and more. The Census Bureau is mandated with fulfilling these obligations: the collecting of statistics about the nation, its people, and economy. The Census Bureau's legal authority is codified in Title 13 of the United States Code . The Census Bureau also conducts surveys on behalf of various federal government and local government agencies on topics such as employment, crime, health, consumer expenditures , and housing. Within
3640-482: Is at stake, the census also runs the risk of being politicized." Such political tensions highlight the complexity of identity and classification ; some argue that unclear results from the population data "is due to distortions brought about by political pressures." One frequently used example includes ambiguous ethnic counts, which often involves underenumeration and/or undercounting of minority populations. Ideas about race, ethnicity and identity have also evolved in
3770-481: Is down from 83,000 the prior September but well above the 2000–2006 average of 21,000 completed foreclosures per month. Speculative borrowing in residential real estate has been cited as a contributing factor to the subprime mortgage crisis. During 2006, 22% of homes purchased (1.65 million units) were for investment purposes, with an additional 14% (1.07 million units) purchased as vacation homes. During 2005, these figures were 28% and 12%, respectively. In other words,
3900-486: Is hit by a shock that lowers housing demand and induces some foreclosures — for example a drop in employment . . . the dynamic interactions between falling prices, defaults, and credit constraints keep growing numbers of buyers out of the market. The scarcity of buyers lowers prices, intensifies the buyers’ market, and leads to a downward price-default spiral." In addition to long-run trends driven by fundamentals, house prices are also subject to asset cycles. Economists debate
4030-666: Is linked to social , racial , and economic inequality, and disproportionately affects households with lower incomes. The insufficiency of suitable affordable housing options can lead to negative outcomes for both families and communities, including homelessness . In addition to shortage and affordability issues, the term "housing crisis" has been used for overlapping concepts such as a "fair housing crisis," involving residential discrimination and effects of segregation; an "eviction crisis"; issues of gentrification and displacement; and environmental concerns. Eviction, displacement, and forms of housing inequality are worsened by and related to
Housing crisis - Misplaced Pages Continue
4160-455: Is not one crisis but a "web of problems and dysfunctions." Even in regions that are not experiencing an overall housing shortage, for example, the term housing crisis has been used to refer to shortages for specific segments of the population, such as a shortage of dedicated affordable housing for very-low income populations or permanent supportive housing for those with disabilities. The term has also been used to refer to financial crises tied to
4290-819: Is part of the U.S. Department of Commerce and its director is appointed by the President of the United States . Currently, Robert Santos is the Director of the U.S. Census Bureau and Ron S. Jarmin is the Deputy Director. The Census Bureau's primary mission is conducting the U.S. census every ten years, which allocates the seats of the U.S. House of Representatives to the states based on their population. The bureau's various censuses and surveys help allocate over $ 675 billion in federal funds every year and it assists states, local communities, and businesses make informed decisions. The information provided by
4420-737: The Bureau of Justice Statistics (BJS), the Department of Housing and Urban Development (HUD), the National Center for Education Statistics (NCES), and the National Science Foundation (NSF), among others. Since 1903, the official census-taking agency of the United States government has been the Bureau of the Census. The Census Bureau is headed by a director, assisted by a deputy director and an executive staff composed of
4550-494: The Census Information Center cooperative program that involves 58 "national, regional, and local non-profit organizations". The CIC program aims to represent the interests of underserved communities. The 1890 census was the first to use the electric tabulating machines invented by Herman Hollerith . For 1890–1940 details, see Truesdell, Leon E. (1965). The Development of Punch Card Tabulation in
4680-613: The District of Columbia is. Regional divisions used by the United States Census Bureau: The first census was collected in 1790 and published in 1791. It was 56 pages and cost $ 44,377.28. The current system was introduced for the 1910 census, but other ways of grouping states were used historically by the Census Bureau. The first of these was introduced after the 1850 census by statistician and later census superintendent J. D. B. De Bow . He published
4810-545: The House of Representatives and, by extension, in the Electoral College . The Census Bureau now conducts a full population count every ten years in years ending with a zero and uses the term " decennial " to describe the operation. Between censuses, the Census Bureau makes population estimates and projections. In addition, census data directly affects how more than $ 400 billion per year in federal and state funding
4940-551: The IRS or the FBI or Interpol . "Providing quality data, for public good—while respecting individual privacy and, at the same time, protecting confidentiality—is the Census Bureau's core responsibility"; "Keeping the public's trust is critical to the Census's ability to carry out the mission as the leading source of quality data about the Nation's people and economy." Only after 72 years does
5070-646: The Topologically Integrated Geographic Encoding and Referencing (TIGER) database system. Census officials were able to evaluate the more sophisticated and detailed results that the TIGER system produced; furthermore, TIGER data is also available to the public. And while the TIGER system does not directly amass demographic data, as a geographic information system (GIS), it can be used to merge demographics to conduct more accurate geospatial and mapping analysis. In July 2019,
5200-502: The commercial paper markets, which are integral to funding business operations. Governments also bailed out key financial institutions, assuming significant additional financial commitments. The risks to the broader economy created by the housing market downturn and subsequent financial market crisis were primary factors in several decisions by central banks around the world to cut interest rates and governments to implement economic stimulus packages. Effects on global stock markets due to
5330-485: The mortgage-backed security (MBS) and collateralized debt obligation (CDO), which were assigned safe ratings by the credit rating agencies. United States Census Bureau The United States Census Bureau ( USCB ), officially the Bureau of the Census , is a principal agency of the U.S. Federal Statistical System , responsible for producing data about the American people and economy . The U.S. Census Bureau
Housing crisis - Misplaced Pages Continue
5460-470: The shadow banking system . These entities were not subject to the same regulations as depository banking. Further, shadow banks were able to mask the extent of their risk taking from investors and regulators through the use of complex, off-balance sheet derivatives and securitizations. Economist Gary Gorton has referred to the 2007–2008 aspects of the crisis as a " run " on the shadow banking system. The complexity of these off-balance sheet arrangements and
5590-518: The "standard formula" to assess local housing need. The formula uses household growth projections, adjusted for affordability Critics of this method say that it does not account for the present backlog of housing. Households that live in poorly maintained or overcrowded accommodations would not be represented in the standard formula. A 2019 report estimates that 4.75 million households in Great Britain are in need of adequate affordable housing. In
5720-482: The 19th century, housing development in the United States was characterized by rapid urban growth in economically productive places. Throughout the 20th century, however, a number of regulations that were designed to block in-fill and direct greenfield development took hold, such as exclusionary zoning . These regulations had the net effect of reducing housing construction and reducing the ability of regional housing stock to adjust to changing market conditions. Beginning in
5850-433: The 2019 general election, both major political parties identified the housing gap as an obstacle for the country, and pledged to increase housing supply. The Parliament has a stated target of 300,000 new homes a year by the mid-2020s. Another use of the term "housing crisis" refers to financial crises related to the housing sector. Rapid swings and especially declines in housing asset prices can cause shocks to credit markets,
5980-553: The 25.9% drop between 1928 and 1933 when the Great Depression occurred. From September 2008 to September 2012, there were approximately 4 million completed foreclosures in the U.S. As of September 2012, approximately 1.4 million homes, or 3.3% of all homes with a mortgage, were in some stage of foreclosure compared to 1.5 million, or 3.5%, in September 2011. During September 2012, 57,000 homes completed foreclosure; this
6110-571: The 50 states and within the District of Columbia are included in the estimation. The United States Census Bureau is committed to confidentiality and guarantees non-disclosure of any addresses or personal information related to individuals or establishments. Title 13 of the U.S. Code establishes penalties for the disclosure of this information. All census employees must sign an affidavit of non-disclosure prior to employment. This non-disclosure states "I will not disclose any information contained in
6240-546: The American economy in order to plan business decisions. Furthermore, economic and foreign trade indicators released by the federal government typically contain data produced by the Census Bureau. Article One of the United States Constitution (section II) directs the population be enumerated at least once every ten years and the resulting counts used to set the number of members from each state in
6370-428: The Bureau of the Census, 1890–1940: With outlines of actual tabulation programs . U.S. GPO . In 1946, knowing of the bureau's funding of Hollerith and, later, Powers , John Mauchly approached the bureau about early funding for UNIVAC development. A UNIVAC I computer was accepted by the bureau in 1951. Historically, the census information was gathered by census takers going door-to-door collecting information in
6500-458: The Census Bureau stopped releasing new data via American FactFinder, which was decommissioned in March 2020 after 20 years of being the agency's primary tool for data dissemination. The new platform is data.census.gov. Throughout the decade between censuses, the bureau conducts surveys to produce a general view and comprehensive study of the United States' social and economic conditions. Staff from
6630-524: The Current Surveys Program conduct over 130 ongoing and special surveys about people and their characteristics. A network of professional field representatives gathers information from a sample of households, responding to questions about employment, consumer expenditures, health, housing, and other topics. Surveys conducted between decades: The Census Bureau also collects information on behalf of survey sponsors. These sponsors include
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#17327902938176760-501: The HHC. Since the units were updated nightly with important changes and updates, operator implementation of proper procedure was imperative. Census Bureau stays current by conducting research studies to improve the work that they do. Census researchers explore topics about survey innovations, participation, and data accuracy, such as undercount, overcount, the use of technologies, multilingual research, and ways to reduce costs. In addition,
6890-572: The Justice Department and Selective Service system for the purpose of prosecutions for draft evasion. During World War II , the United States Census Bureau assisted the government's Japanese American internment efforts by providing confidential neighborhood information on Japanese-Americans . The bureau's role was denied for decades but was finally proven in 2007. United States census data are valuable for
7020-468: The U.S. and European economies. The U.S. entered a deep recession, with nearly 9 million jobs lost during 2008 and 2009, roughly 6% of the workforce. The number of jobs did not return to the December 2007 pre-crisis peak until May 2014. U.S. household net worth declined by nearly $ 13 trillion (20%) from its Q2 2007 pre-crisis peak, recovering by Q4 2012. U.S. housing prices fell nearly 30% on average and
7150-443: The U.S. financial and economic system that contributed to the crisis. These assumptions included: 1) Housing prices would not fall dramatically; 2) Free and open financial markets supported by sophisticated financial engineering would most effectively support market efficiency and stability, directing funds to the most profitable and productive uses; 3) Concepts embedded in mathematics and physics could be directly adapted to markets, in
7280-453: The U.S. president by December 31 of any year ending in a zero. States within the Union receive the results in the spring of the following year. The United States Census Bureau defines four statistical regions, with nine divisions. The Census Bureau regions are "widely used...for data collection and analysis". The Census Bureau definition is pervasive. The territories are not included, but
7410-486: The U.S. stock market fell approximately 50% by early 2009, with stocks regaining their December 2007 level during September 2012. One estimate of lost output and income from the crisis comes to "at least 40% of 2007 gross domestic product ". Europe also continued to struggle with its own economic crisis , with elevated unemployment and severe banking impairments estimated at €940 billion between 2008 and 2012. As of January 2018, U.S. bailout funds had been fully recovered by
7540-640: The United States in certain markets could account for a miniscule amount of inflated housing costs while some Economists believe that deporations would exacerbate the crisis given the high percentage of foreign-born workers building and fixing homes, with a professor at Wharton arguing there is no way to increase the supply without more immigration. Others point out that recent immigrants demand less space, often doubling-up. Immigrants are also more likely to seek out and be recruited to help revitalize places with flagging downtowns and empty homes. Within areas experiencing these shortages, effects are especially acute among
7670-581: The United States, and such changes warrant examination of how these shifts have impacted the accuracy of census data over time. The United States Census Bureau began pursuing technological innovations to improve the precision of its census data collection in the 1980s. Robert W. Marx, the Chief of the Geography Division of the USCB teamed up with the U.S. Geological Survey and oversaw the creation of
7800-432: The United States, the term "housing crisis" has been used to describe persistent shortages of non-commodity and supportive housing provided to vulnerable members of the population. Even in regions with relatively abundant market-rate housing, the market can fail to supply safe and sufficient housing to populations with very low income or disabilities that impair independent living. Insufficient public funding has contributed to
7930-440: The amount of mortgage debt per household rose more than 63%, from $ 91,500 to $ 149,500, with essentially stagnant wages. Economist Tyler Cowen explained that the economy was highly dependent on this home equity extraction: "In the 1993–1997 period, home owners extracted an amount of equity from their homes equivalent to 2.3% to 3.8% GDP. By 2005, this figure had increased to 11.5% GDP." This credit and house price explosion led to
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#17327902938178060-570: The associate directors. The Census Bureau headquarters has been in Suitland, Maryland , since 1942. A new headquarters complex completed there in 2007 supports over 4,000 employees. > The bureau operates regional offices in 6 cities: > New York City , Philadelphia , Chicago , Atlanta , Denver , and Los Angeles . The National Processing Center is in Jeffersonville, Indiana . Additional temporary processing facilities facilitate
8190-585: The balance of housing supply, have declined across the country. While, in a balanced market, rental vacancy rates should fall between 7 and 8 percent, only one U.S. census region, the South, achieved target levels on average in its metro areas as of 2021. These regional housing shortages have had nationwide effects. Rates of migration within the United States have fallen, housing costs have risen in areas that would otherwise provide quality jobs, and incomes from region to region have increasingly diverged. Immigration into
8320-412: The banking sector, and the wider economy. Many homebuyers purchase housing on credit in the form of a mortgage, but changing economic conditions can leave them unable to pay back their loans. Guren and McQuade (2020) argue that widespread foreclosures can interact with the housing market to amplify declines in asset prices, leading to prices below levels determined by fundamentals: "When the housing market
8450-738: The boom period. The use of automated loan approvals allowed loans to be made without appropriate review and documentation. In 2007, 40% of all subprime loans resulted from automated underwriting. The chairman of the Mortgage Bankers Association claimed that mortgage brokers, while profiting from the home loan boom, did not do enough to examine whether borrowers could repay. Mortgage fraud by lenders and borrowers increased enormously. The Financial Crisis Inquiry Commission reported in January 2011 that many mortgage lenders took eager borrowers' qualifications on faith, often with
8580-499: The boom-bust-rebound of the 2000s housing cycle. These foreclosure crises can have significant consequences for the wider economy. Subprime mortgage crisis The American subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the 2007–2008 global financial crisis . The crisis led to a severe economic recession , with millions losing their jobs and many businesses going bankrupt . The U.S. government intervened with
8710-403: The bubble (and declines in the bust) were most pronounced. In these states, investor delinquency rose from around 15% in 2000 to over 35% in 2007 and 2008. Economist Robert Shiller argued that speculative bubbles are fueled by "contagious optimism, seemingly impervious to facts, that often takes hold when prices are rising. Bubbles are primarily social phenomena; until we understand and address
8840-412: The bubble. Further, this greater share of income flowing to the top increased the political power of business interests, who used that power to deregulate or limit regulation of the shadow banking system. According to Robert J. Shiller and other economists, housing price increases beyond the general inflation rate are not sustainable in the long term. From the end of World War II to the beginning of
8970-404: The bureau, these are known as "demographic surveys" and are conducted perpetually between and during decennial (10-year) population counts. The Census Bureau also conducts economic surveys of manufacturing, retail, service, and other establishments and of domestic governments. Between 1790 and 1840, the census was taken by marshals of the judicial districts . The Census Act of 1840 established
9100-510: The causes of these cycles, but have studied links to changing beliefs about asset prices, broader economic conditions, credit constraints, and interactions with mortgage lenders. As part of an asset cycle, house prices can rise above levels determined by fundamentals (" Housing bubble "). During a correction, a financial-housing crisis can occur in the context of a downward price-foreclosure spiral. This "price-foreclosure spiral . . . pushes prices below their long-run level" leading to patterns such as
9230-612: The census informs decisions on where to build and maintain schools, hospitals, transportation infrastructure, and police and fire departments. In addition to the decennial census, the Census Bureau continually conducts over 130 surveys and programs a year, including the American Community Survey , the U.S. Economic Census , and the Current Population Survey . The U.S. Economic Census occurs every five years and reports on American Business and
9360-450: The country's political parties; Democrats and Republicans are highly interested in knowing the accurate number of persons in their respective districts. These insights are often linked to financial and economic strategies that are central to federal, state and city investments for locations of particular populations. Such apportionments are designed to distribute political power across neutral spatial allocations; however, "because so much
9490-437: The crisis expanded from the housing market to other parts of the economy. Total losses were estimated in the trillions of U.S. dollars globally. While the housing and credit bubbles were growing, a series of factors caused the financial system to become increasingly fragile. Policymakers did not recognize the increasingly important role played by financial institutions such as investment banks and hedge funds , also known as
9620-566: The crisis first became more visible during 2007, several major financial institutions collapsed in late 2008, with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession. Most notably, Lehman Brothers , a major mortgage lender, declared bankruptcy in September 2008 . There were many causes of the crisis, with commentators assigning different levels of blame to financial institutions, regulators, credit agencies, government housing policies, and consumers, among others. Two proximate causes were
9750-450: The crisis than subprime borrowers: "The rise in mortgage defaults during the crisis was concentrated in the middle of the credit score distribution, and mostly attributable to real estate investors" and that "credit growth between 2001 and 2007 was concentrated in the prime segment, and debt to high-risk [subprime] borrowers was virtually constant for all debt categories during this period." The authors argued that this investor-driven narrative
9880-400: The crisis was financed with mortgage-backed securities (MBSes) and collateralized debt obligations (CDOs), which initially offered higher interest rates (i.e. better returns) than government securities, along with attractive risk ratings from rating agencies . Despite being highly rated, most of these financial instruments were made up of high-risk subprime mortgages . While elements of
10010-405: The crisis were dramatic. Between January 1 and October 11, 2008, owners of stocks in U.S. corporations suffered about $ 8 trillion in losses, as their holdings declined in value from $ 20 trillion to $ 12 trillion. Losses in other countries averaged about 40%. Losses in the stock markets and housing value declines place further downward pressure on consumer spending, a key economic engine. Leaders of
10140-501: The crisis, lacking a full understanding of the financial system they oversaw; and systemic breaches in accountability and ethics at all levels." There are several "narratives" attempting to place the causes of the crisis into context, with overlapping elements. Five such narratives include: Underlying narratives #1-3 is a hypothesis that growing income inequality and wage stagnation encouraged families to increase their household debt to maintain their desired living standard, fueling
10270-500: The decennial census, which employs more than a million people. The cost of the 2000 census was $ 4.5 billion. During the years just prior to the decennial census, parallel census offices, known as "Regional Census Centers" are opened in the field office cities. The decennial operations are carried out from these facilities. The Regional Census Centers oversee the openings and closings of smaller "Area Census Offices" within their collection jurisdictions. In 2020, Regional Census Centers oversaw
10400-480: The department. An act in 1920 changed the date and authorized manufacturing censuses every two years and agriculture censuses every 10 years. In 1929, a bill was passed mandating the House of Representatives be reapportioned based on the results of the 1930 census . In 1954, various acts were codified into Title 13 of the U.S. Code. By law, the Census Bureau must count everyone and submit state population totals to
10530-519: The finance industry's opaque faulty risk pricing methodology. Among the important catalysts of the subprime crisis were the influx of money from the private sector, the banks entering into the mortgage bond market, government policies aimed at expanding homeownership, speculation by many home buyers, and the predatory lending practices of the mortgage lenders, specifically the adjustable-rate mortgage, 2–28 loan , that mortgage lenders sold directly or indirectly via mortgage brokers. On Wall Street and in
10660-596: The financial industry, moral hazard lay at the core of many of the causes. In its "Declaration of the Summit on Financial Markets and the World Economy," dated November 15, 2008, leaders of the Group of 20 cited the following causes: During a period of strong global growth, growing capital flows, and prolonged stability earlier this decade, market participants sought higher yields without an adequate appreciation of
10790-649: The following decades, several other systems were used, until the current one was introduced in 1910. This system has seen only minor changes: New Mexico and Arizona were both added to the Mountain division upon statehood in 1912, the North region was divided into a Northeast and a North Central region in 1940, Alaska and Hawaii were both added to the Pacific division upon statehood in 1959, and the North Central region
10920-875: The form of various financial models used to evaluate credit risk; 4) Economic imbalances, such as large trade deficits and low savings rates indicative of over-consumption, were sustainable; and 5) Stronger regulation of the shadow banking system and derivatives markets was not needed. Economists surveyed by the University of Chicago during 2017 rated the factors that caused the crisis in order of importance: 1) Flawed financial sector regulation and supervision; 2) Underestimating risks in financial engineering (e.g., CDOs); 3) Mortgage fraud and bad incentives; 4) Short-term funding decisions and corresponding runs in those markets (e.g., repo); and 5) Credit rating agency failures. The U.S. Financial Crisis Inquiry Commission reported its findings in January 2011. It concluded that "the crisis
11050-562: The government, when interest on loans is taken into consideration. A total of $ 626B was invested, loaned, or granted due to various bailout measures, while $ 390B had been returned to the Treasury. The Treasury had earned another $ 323B in interest on bailout loans, resulting in an $ 109B profit as of January 2021. The immediate cause of the crisis was the bursting of the United States housing bubble which peaked in approximately 2006. An increase in loan incentives such as easy initial terms and
11180-500: The homeowner to pay only the interest (not principal) of the mortgage during an initial "teaser" period. Even looser was the "payment option" loan, in which the homeowner has the option to make monthly payments that do not even cover the interest for the first two- or three-year initial period of the loan. Nearly one in 10 mortgage borrowers in 2005 and 2006 took out these "option ARM" loans, and an estimated one-third of ARMs originated between 2004 and 2006 had "teaser" rates below 4%. After
11310-572: The housing and credit booms, the number of financial agreements called mortgage-backed securities (MBS), which derive their value from mortgage payments and housing prices, greatly increased. Such financial innovation enabled institutions and investors around the world to invest in the U.S. housing market. As housing prices declined, major global financial institutions that had borrowed and invested heavily in MBS reported significant losses. Defaults and losses on other loan types also increased significantly as
11440-415: The housing bubble in 1997, housing prices in the US remained relatively stable. The bubble was characterized by higher rates of household debt and lower savings rates, slightly higher rates of home ownership, and of course higher housing prices. It was fueled by low interest rates and large inflows of foreign funds that created easy credit conditions. Between 1997 and 2006 (the peak of the housing bubble),
11570-512: The housing sector, such as in the United States during the subprime mortgage crisis of 2007–2008. Similarly, "housing crisis" has been used to describe financial problems in the Chinese property sector that began in 2020 and are ongoing. The term "housing crisis" often refers to issues around high prices for accessing housing, sometimes known as the housing shortage , housing crunch or the homelessness and affordability crisis . Cities around
11700-431: The information collected become available to other agencies or the general public. Seventy-two years was picked because usually by 72 years since the census is taken, most participants would be deceased. Despite these guarantees of confidentiality, the Census Bureau has some history of disclosures to other government agencies. In 1918, the Census Bureau released individual information regarding several hundred young men to
11830-505: The initial period, monthly payments might double or even triple. The proportion of subprime ARM loans made to people with credit scores high enough to qualify for conventional mortgages with better terms increased from 41% in 2000 to 61% by 2006. In addition, mortgage brokers in some cases received incentives from lenders to offer subprime ARMs even to those with credit ratings that merited a conforming (i.e., non-subprime) loan. Mortgage underwriting standards declined precipitously during
11960-658: The larger developed and emerging nations met in November 2008 and March 2009 to formulate strategies for addressing the crisis. A variety of solutions have been proposed by government officials, central bankers, economists, and business executives. In the U.S., the Dodd–Frank Wall Street Reform and Consumer Protection Act was signed into law in July 2010 to address some of the causes of the crisis. The crisis can be attributed to several factors, which emerged over
12090-543: The last quarter of the 20th century, market-wide housing shortages have existed in a growing number of markets throughout the country, starting in prosperous coastal regions, such as Boston, New York, or the California Bay Area. In the last two decades, these shortages have spread from coastal superstar cities to affect broader areas of the country, so that on average there is a deficit of housing nationwide. Rental vacancy rates, for example, which are one marker of
12220-516: The loans described above and did not have a financial cushion sufficient to absorb large loan defaults or MBS losses. The losses experienced by financial institutions on their mortgage-related securities impacted their ability to lend, slowing economic activity. Interbank lending dried-up initially and then loans to non-financial firms were affected. Concerns regarding the stability of key financial institutions drove central banks to take action to provide funds to encourage lending and to restore faith in
12350-499: The lower-income households in America. A 2017 HUD survey found that 89% of extremely low income renter households were moderately or severely cost burdened. 83% of very low income households, 54% of low income households, 20% of moderate income households, and 6% of high income households met the same criteria. Decades of under-building in economically prosperous metros has led to regional housing shortages with national implications. In
12480-443: The occupant is paying no more than 30 percent of gross income for housing costs, including utilities." HUD uses the terms "cost burdened" and "severely cost burdened" to describe individuals or families that spend more than 30% and 50% of their income on housing costs, respectively. According to the 2020 U.S. census , 46% of American renters are cost burdened, with 23% severely cost burdened. The affordable housing gap especially impacts
12610-638: The operation of 248 Area Census Offices, The estimated cost of the 2010 census is $ 14.7 billion. On January 1, 2013, the Census Bureau consolidated its twelve regional offices into six. Increasing costs of data collection, changes in survey management tools such as laptops and the increasing use of multi-modal surveys (i.e. internet, telephone, and in-person) led the Bureau to consolidate. The six regional offices that closed were Boston, Charlotte, Dallas, Detroit, Kansas City and Seattle. The remaining regional offices are New York City, Philadelphia, Chicago, Atlanta, Denver, and Los Angeles. The Census Bureau also runs
12740-403: The other hand, stand out for planning systems that enable NIMBY obstruction of housing, with prices rising and housing falling into shortage as a result. Exceptions include Houston non-zoning approach with no restrictions on specific land use ( YIMBY ) but with other developmental code. Developed European countries, which favor higher density construction than Anglophone countries, have followed
12870-445: The populace's private information. Enumerators (information gatherers) that had operational problems with the device understandably made negative reports. During the 2009 Senate confirmation hearings for Robert Groves , President Obama's Census Director appointee, there was much mention of problems but very little criticism of the units. In rural areas, the sparsity of cell phone towers caused problems with data transmission to and from
13000-446: The price of the typical American house increased by 124%. Many research articles confirmed the timeline of the U.S. housing bubble (emerged in 2002 and collapsed in 2006–2007) before the collapse of the subprime mortgage industry. From 1980 to 2001, the ratio of median home prices to median household income (a measure of ability to buy a house) fluctuated from 2.9 to 3.1. In 2004 it rose to 4.0, and by 2006 it hit 4.6. The housing bubble
13130-501: The process of "McMansionization." Rather than preserving existing single-family homes, single-family zoning can lead to replacement and upscaling because of cost pressures associated with the housing shortage. A trend towards larger single-family homes is also observable in national census data. After the COVID-19 pandemic, some baby boomers whose children have moved away have found it prohibitively expensive to move into smaller homes,
13260-550: The psychology that fuels them, they're going to keep forming." Keynesian economist Hyman Minsky described how speculative borrowing contributed to rising debt and an eventual collapse of asset values. Warren Buffett testified to the Financial Crisis Inquiry Commission : "There was the greatest bubble I've ever seen in my life...The entire American public eventually was caught up in a belief that housing prices could not fall dramatically." In
13390-415: The real rate of interest (influenced by central banks) or unprecedented availability of housing credit may explain a significant fraction of the increase in house prices over the last two decades. The third strand focuses on the role of unrealistic expectations about future house price growth." Of the three strands, "the main underlying cause for the 'affordability crisis', which has been mounting for decades,
13520-507: The reforms. Building on Auckland's success, the national government passed a bipartisan upzoning of much of the country's largest cities to allow 3 units and 3 stories on all residential parcels in October of 2021. The United Kingdom faces regional shortages of housing, with undersupply and high demand in the south, relative to more abundant housing in economically depressed areas of the north. The UK National Planning Policy Framework uses
13650-465: The remainder of the mortgage's term. The US home ownership rate increased from 64% in 1994 (about where it had been since 1980) to an all-time high of 69.2% in 2004. Subprime lending was a major contributor to this increase in home ownership rates and in the overall demand for housing, which drove prices higher. Borrowers who would not be able to make the higher payments once the initial grace period ended, were planning to refinance their mortgages after
13780-439: The rise in subprime lending and the increase in housing speculation. Investors, even those with "prime", or low-risk, credit ratings, were much more likely to default than non-investors when prices fell. These changes were part of a broader trend of lowered lending standards and higher-risk mortgage products, which contributed to U.S. households becoming increasingly indebted. The crisis had severe, long-lasting consequences for
13910-629: The risk of mortgage default, monetary and housing policies that encouraged risk-taking and more debt, international trade imbalances , and inappropriate government regulation. Excessive consumer housing debt was in turn caused by the mortgage-backed security , credit default swap , and collateralized debt obligation sub-sectors of the finance industry , which were offering irrationally low interest rates and irrationally high levels of approval to subprime mortgage consumers due in part to faulty financial models. Debt consumers were acting in their rational self-interest, because they were unable to audit
14040-487: The risks and failed to exercise proper due diligence. At the same time, weak underwriting standards, unsound risk management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in the system. Policy-makers, regulators and supervisors, in some advanced countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account
14170-409: The schedules, lists, or statements obtained for or prepared by the Census Bureau to any person or persons either during or after employment." The punishment for breaking the non-disclosure is a fine up to $ 250,000 or 5 years in prison. The bureau cannot share responses, addresses or personal information with anyone, including the United States or foreign governments, or law enforcement agencies such as
14300-409: The second half of 2008. He concluded that the extent of equity in the home was the key factor in foreclosure, rather than the type of loan, credit worthiness of the borrower, or ability to pay. Increasing foreclosure rates increases the inventory of houses offered for sale. The number of new homes sold in 2007 was 26.4% less than in the preceding year. By January 2008, the inventory of unsold new homes
14430-520: The securities held, as well as the interconnection between larger financial institutions, made it virtually impossible to re-organize them via bankruptcy, which contributed to the need for government bailouts. Some experts believe these shadow institutions had become as important as commercial (depository) banks in providing credit to the U.S. economy, but they were not subject to the same regulations. These institutions as well as certain regulated banks had also assumed significant debt burdens while providing
14560-434: The shortage and affordability crisis, but also have causes of their own and require distinct solutions. Rising insurance premiums due to natural disasters has been one source of climate-driven price increases, with one estimate showing home insurance premiums rising 33% between 2020 and 2023. Climate change can also raise energy costs as hotter summers require more energy to keep home cool. ProPublica in 2022 investigated
14690-611: The shortage of housing units in urban areas was estimated to be 18.78 million. The shortfall is particularly acute for households belonging to the Economically Weaker Section (total household income does not exceed 300,000 rupees), with a shortage of 10.55 million units, as well as the Lower Income Group (total household income is between 300,000 and 600,000 rupees), with a shortage of 7.41 million units. The Middle Income Group and above (households with
14820-543: The single-biggest contributor to inflation. The U.S. Census Bureau found that if you took out housing costs, inflation at the end of 2023 would have been 1.8% instead of 3.2%. Artificial scarcity in the supply of housing, due to NIMBYism , has been a significant factor in making housing more expensive. Freddie Mac estimated that the shortage of homes increased by 52%, to 3.8 million units, between 2018 and 2020. The United States Department of Housing and Urban Development (HUD) defines affordable housing as "housing on which
14950-481: The systemic ramifications of domestic regulatory actions. Federal Reserve Chair Ben Bernanke testified in September 2010 regarding the causes of the crisis. He wrote that there were shocks or triggers (i.e., particular events that touched off the crisis) and vulnerabilities (i.e., structural weaknesses in the financial system, regulation and supervision) that amplified the shocks. Examples of triggers included: losses on subprime mortgage securities that began in 2007 and
15080-552: The use of RealPage 's algorithmic pricing scheme by many competing rental companies across the United States to set rental prices, which critics allege has helped to raise rents by limiting competition. The US DOJ escalated its investigation into price fixing in March of 2024, and filed an anti-trust lawsuit in August of 2024. According to a 2012 report by the National Buildings Organisation (NBO),
15210-552: The value of mortgage-backed securities, which eroded the net worth and financial health of banks. This vicious cycle was at the heart of the crisis. By September 2008, average U.S. housing prices had declined by over 20% from their mid-2006 peak. This major and unexpected decline in house prices means that many borrowers have zero or negative equity in their homes, meaning their homes were worth less than their mortgages. As of March 2008, an estimated 8.8 million borrowers – 10.8% of all homeowners – had negative equity in their homes,
15340-478: The value of these securities dropped, investors demanded that these hedge funds provide additional collateral. This created a cascade of selling in these securities, which lowered their value further. Economist Mark Zandi wrote that this 2007 event was "arguably the proximate catalyst" for the financial market disruption that followed. Several other factors set the stage for the rise and fall of housing prices, and related securities widely held by financial firms. In
15470-500: The world are facing an "affordability crisis" as part of a long run trend that has persisted for decades. Economists debate the causes of this affordability crisis. The state of the debate as of 2022 was summarized by economists Christian Hilber and Olivier Schöni in a contribution to the Oxford Research Encyclopedia of Economics and Finance : "Three strands of the literature can be distinguished. The first
15600-635: The years before the crisis, the behavior of lenders changed dramatically. Lenders offered more and more loans to higher-risk borrowers. Lending standards deteriorated particularly between 2004 and 2007, as the government-sponsored enterprise (GSE) mortgage market share (i.e. the share of Fannie Mae and Freddie Mac , which specialized in conventional, conforming , non-subprime mortgages) declined and private securitizers share grew, rising to more than half of mortgage securitizations. Subprime mortgages grew from 5% of total originations ($ 35 billion) in 1994, to 20% ($ 600 billion) in 2006. Another indicator of
15730-522: The years leading up to the crisis, the U.S. received large amounts of foreign money from fast-growing economies in Asia and oil-producing/exporting countries. This inflow of funds combined with low U.S. interest rates from 2002 to 2004 contributed to easy credit conditions, which fueled both housing and credit bubbles . Loans of various types (e.g., mortgage, credit card, and auto) were easy to obtain and consumers assumed an unprecedented debt load. As part of
15860-438: The young, the poor, among renters, those living in crowded conditions, and those experiencing homelessness. Areas with market-wide housing shortages have significantly higher rates of homelessness than those with adequate or surplus housing stock: Variations in rent-levels and vacancies are chief factors explaining regional variations in homelessness rates. In certain high-demand metros, single-family zoning has also contributed to
15990-458: Was 127% at the end of 2007, versus 77% in 1990. While housing prices were increasing, consumers were saving less and both borrowing and spending more. Household debt grew from $ 705 billion at year end 1974, 60% of disposable personal income, to $ 7.4 trillion at yearend 2000, and finally to $ 14.5 trillion in midyear 2008, 134% of disposable personal income. During 2008, the typical US household owned 13 credit cards, with 40% of households carrying
16120-648: Was 9.8 times the December 2007 sales volume, the highest value of this ratio since 1981. Furthermore, nearly four million existing homes were for sale, of which roughly 2.2 million were vacant. This overhang of unsold homes lowered house prices. As prices declined, more homeowners were at risk of default or foreclosure. House prices are expected to continue declining until this inventory of unsold homes (an instance of excess supply) declines to normal levels. A report in January 2011 stated that U.S. home values dropped by 26% from their peak in June 2006 to November 2010, more than
16250-507: Was a market for low-quality private label securitizations. They argued that a "Giant Pool of Money" (represented by $ 70 trillion in worldwide fixed income investments) sought higher yields than those offered by U.S. Treasury bonds early in the decade. Further, this pool of money had roughly doubled in size from 2000 to 2007, yet the supply of relatively safe, income-generating investments had not grown as quickly. Investment banks on Wall Street answered this demand with financial innovation such as
16380-524: Was avoidable and was caused by: Widespread failures in financial regulation, including the Federal Reserve's failure to stem the tide of toxic mortgages; Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk; An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis; Key policy makers ill prepared for
16510-414: Was manufactured by Harris Corporation , an established Department of Defense contractor, via a controversial contract with the Department of Commerce . Secured access via a fingerprint swipe guaranteed only the verified user could access the unit. A GPS capacity was integral to the daily address management and the transfer of gathered information. Of major importance was the security and integrity of
16640-631: Was more accurate than blaming the crisis on lower-income, subprime borrowers. A 2011 Fed study had a similar finding: "In states that experienced the largest housing booms and busts, at the peak of the market almost half of purchase mortgage originations were associated with investors. In part by apparently misreporting their intentions to occupy the property, investors took on more leverage, contributing to higher rates of default." The Fed study reported that mortgage originations to investors rose from 25% in 2000 to 45% in 2006, for Arizona, California, Florida, and Nevada overall, where housing price increases during
16770-409: Was more pronounced in coastal areas where the ability to build new housing was restricted by geography or land use restrictions. This housing bubble resulted in quite a few homeowners refinancing their homes at lower interest rates, or financing consumer spending by taking out second mortgages secured by the price appreciation. US household debt as a percentage of annual disposable personal income
16900-485: Was renamed the Midwest in 1984. Many federal, state, local and tribal governments use census data to: Census data is used to determine how seats of Congress are distributed to states. Census data is not used to determine or define race genetically, biologically or anthropologically. The census data is also used by the Bureau to obtain a real-time estimate in U.S. and World Population Clock. Only peoples whose live in
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