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November 04, 2014

The Next Housing Crisis May Be Sooner Than you Think

In this CityLab article, urban theorist Richard Florida argues that the US could fall into another housing crisis before completely recovering from the 2008 meltdown. New construction is only 49% back to normal, Americans are overspending on housing (over 33% of their incomes in 2013, up nearly 13% from 20 years ago), and home ownership has reached its lowest level (64.4%) in 20 years. Florida also adds:

 

Homeownership currently hovers from the mid-50 to low-60 percent range in some of the most highly productive and innovative metros in this country—places like San Francisco, New York, and Los Angeles. This range seems ‘to provide the flexibility of rental and ownership options required for a fast-paced, rapidly changing knowledge economy. Widespread homeownership is no longer the key to a thriving economy,’ I’ve written.”

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