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'{{About|the general phenomenon of housing bubbles|housing bubbles in various countries|Real estate bubble#See also{{!}}below}} A '''real estate bubble''' or '''property bubble''' (or '''housing bubble''' for residential markets) is a type of [[economic bubble]] that occurs periodically in local or global [[real estate]] markets. It is characterized by rapid increases in [[real estate appraisal|valuations]] of [[real property]] such as [[House|housing]] until they reach unsustainable levels and then decline. The questions of whether real estate bubbles can be identified and prevented, and whether they have broader [[macroeconomic]] significance are answered differently by [[schools of economic thought]], as detailed below. The [[financial crisis of 2007–2010]] was related to the bursting of real estate bubbles around the world, which had begun during the mid 2000s. <ref>Michael Simkovic, [http://ssrn.com/abstract=1924831 "Competition and Crisis in Mortgage Securitization"]</ref><ref>{{cite news| url=http://voices.washingtonpost.com/ezra-klein/2009/05/bill_clinton_and_the_housing_b.html | work=Washington Post | title=Bill Clinton and the Housing Bubble | date=2009-05-28 | accessdate=2011-09-22 | first1=Ezra | last1=Klein}}</ref> ==Identification and prevention== [[File:Case-shiller-index-values.jpg|thumb|Some{{who|date=September 2011}} argue that a [[house price index]] such as the [[Case-Shiller index]] allows the identification of real estate bubbles.]] {{Unreferenced section|date=May 2011}} As with all types of [[economic bubble]]s, whether real estate bubbles can be identified or prevented is contentious. Bubbles are generally not contentious in [[hindsight]], after a peak and crash. Within [[mainstream economics]], some argue that real estate bubbles cannot be identified as they occur and cannot or should not be prevented, with government and central bank policy rather cleaning up after the bubble bursts. Others, such as American economist [[Robert Shiller]] of the Case-Shiller Home Price Index of home prices in 20 metro cities across the United States, indicated in May 31, 2011 that a "Home Price Double Dip Confirmed"<ref>{{cite news|last=Christie|first=Les|title=Home prices: 'Double-dip' confirmed|url=http://money.cnn.com/2011/05/31/real_estate/march_home_prices/index.htm|newspaper=CNN Money|date=May 31, 2011}}</ref> and British magazine ''[[The Economist]],'' argue that [[#Housing market indicators|housing market indicators]] can be used to identify real estate bubbles. Some argue further that governments and central banks can and should take action to prevent bubbles from forming, or to deflate existing bubbles. ==Macroeconomic significance== {{Unreferenced section|date=May 2011}} Within [[mainstream economics]], economic bubbles, and in particular real estate bubbles, are not considered major concerns.{{dubious|date=December 2010}} Within some schools of [[heterodox economics]], by contrast, real estate bubbles are considered of critical importance and a fundamental cause of [[financial crises]] and ensuing [[economic crises]]. The mainstream economic view is that economic bubbles bring about a temporary boost in wealth and a redistribution of wealth. When prices increase, there is a positive [[wealth effect]] (property owners feel richer and spend more), and when they decline, there is a negative wealth effect (property owners feel poorer and spend less). These effects, it is argued, can be smoothed by [[counter-cyclical]] monetary and fiscal policies. The ultimate effect on owners who bought before the bubble formed and did not sell is zero. Those who bought when low and sold high profited, while those who bought high and sold low (after the bubble has burst) or held until the price fell lost money. This redistribution of wealth, it is also argued, is of little macroeconomic significance. In some schools of heterodox economics, notably [[Austrian economics]] and [[Post-Keynesian economics]], real estate bubbles are seen as an example of [[credit bubble]]s (pejoratively, [[speculative bubble]]s), because property owners generally use borrowed money to purchase property, in the form of [[Mortgage loan|mortgages]]. These are then argued to cause financial and hence economic crises. This is first argued empirically – numerous real estate bubbles have been followed by economic slumps, and it is argued that there is a cause-effect relationship between these. The Post-Keynesian theory of [[debt deflation]] takes a demand-side view, arguing that property owners not only feel richer but borrow to (i) consume against the increased value of their property --- by taking out a [[home equity line of credit]]), for instance; or (ii) speculate by buying property with borrowed money in the expectation that it will rise in value. The latter view is associated with [[Financial Instability Hypothesis]] of [[Hyman Minsky]]. When the bubble bursts, the value of the property decreases but not the level of debt. The burden of repaying or defaulting on the loan depresses [[aggregate demand]], it is argued, and constitutes the proximate cause of the subsequent economic slump. [[Image:Real Melbourne House Prices 1965 - 2010b.JPG|thumb|alt=Melbourne House Prices and Wages 1965 to 2010|200px|right|Melbourne House Prices and Wages 1965 to 2010]] ==Recent real estate bubbles== ===1990: Japan=== The crash of the [[Japanese asset price bubble]] from 1990 on has been very damaging to the [[Japanese economy]],<ref>{{cite news |url=http://www.nytimes.com/2005/12/25/business/yourmoney/25japan.html?pagewanted=all |title=Take It From Japan: Bubbles Hurt |publisher=''New York Times'' |date=December 25, 2005 |first=Martin |last=Fackler |accessdate=2009-06-23}}</ref>. The crash in 2005 affected [[Shanghai]], [[China]]'s largest city.<ref>{{cite news |url=http://articles.latimes.com/2006/jan/08/business/fi-chinabubble8 |title=A Home Boom Busts |date=January 8, 2006 |first=Don |last=Lee |publisher=''Los Angeles Times'' |accessdate=2009-06-23}}</ref> In comparison to the stock-market bubbles, real estate bubbles take longer to deflate: prices decline slower because the real estate market is less liquid. Commercial real estate generally moves in tandem with the residential properties, since both are affected by many of same factors ([[e.g., interest rates]]) and share the "[[wealth effect]]" of booms.{{Or|date=May 2011}} Therefore this article focuses on housing bubbles and mentions other sectors only when their situation differs. ===2007: many countries=== {{As of|2007}}, real estate bubbles had existed in the recent past or were widely believed to still exist in many parts of the world,<ref name="LVRG">{{cite web |url=http://lvrg.org.au/blog/2009/06/from-subprime-to-terrigenous-recession.html |title=From the subprime to the terrigenous: Recession begins at home |first=Gavin R. |last=Putland |date=June 1, 2009 |publisher=Land Values Research Group |accessdate=2009-06-23}}</ref> especially in the [[United States housing bubble|United States]], [[Argentina]],<ref>{{cite web |url=http://www.globalpropertyguide.com/Latin-America/Argentina/Price-History |title=The good times are here again |publisher=Global Property Guide |date=February 28, 2008 |accessdate=2009-06-23}}</ref> [[British property bubble|Britain]], [[Netherlands]], [[Italy]], [[Australia]], [[New Zealand property bubble|New Zealand]], [[Irish property bubble|Ireland]], [[Spanish property bubble|Spain]], [[Lebanese housing bubble|Lebanon]], [[France]], [[Polish property bubble|Poland]],<ref>{{cite web |url=http://www.globalpropertyguide.com/Europe/Poland/Price-History |title=The end of Poland’s house price boom |publisher=Global Property Guide |date=August 25, 2008 |accessdate=2009-06-23}}</ref> [[South Africa]], [[Israel]], [[Greece]], [[Bulgaria]], [[Croatia]],<ref>{{cite web |url=http://www.globalpropertyguide.com/Europe/Croatia/Price-History |title=Real estate prices in Adriatic Coast up, Zagreb down |publisher=Global Property Guide |date=August 19, 2008 |accessdate=2009-06-23}}</ref> [[Norway]], [[Singapore]], [[South Korea]], [[Sweden]], [[Baltic states]], [[India]], [[Romania]], [[Russia]], [[Ukraine]] and [[China]].<ref>{{cite web |url=http://www.globalpropertyguide.com/Asia/China/Price-History |title=Looming housing slump in China |publisher=Global Property Guide |date=September 1, 2008 |accessdate=2009-06-23}}</ref> Then U.S. Federal Reserve Chairman [[Alan Greenspan]] said in mid-2005 that "at a minimum, there's a little 'froth' (in the U.S. housing market) … it's hard not to see that there are a lot of local bubbles."<ref>{{cite news |url=http://www.nytimes.com/2005/12/25/weekinreview/25track.ready.html?pagewanted=all |title=2005: In a Word: Frothy |first=David |last=[[David Leonhardt|Leonhardt]] |date=December 25, 2005 |publisher=''New York Times'' |accessdate=2009-06-23}}</ref> The ''[[The Economist|Economist]]'' magazine, writing at the same time, went further, saying "the worldwide rise in house prices is the biggest bubble in history".<ref>{{cite news |url=http://www.economist.com/opinion/displaystory.cfm?story_id=4079027 |title=The global housing boom |date=June 16, 2005 |work=The Economist}}</ref> Real estate bubbles are invariably followed by severe price decreases (also known as a '''house price crash''') that can result in many owners holding. As of the end of 2010, 11.1 million residential properties, or 23.1% of all U.S. homes, were in [[negative equity]] at Dec. 31, 2010.<ref>{{cite web|last=Philyaw|first=Jason|title=Underwater mortgages back above 11 million in 4Q|publisher=CoreLogic}}</ref> Commercial property values remain around 35% below their mid-2007 peak in the United Kingdom.<ref>PropertyMall http://www.propertymall.com/press/article/24577</ref> As a result, banks have become less willing to hold large amounts of property backed debt, a likely key issue in affecting a recovery worldwide in the near term. == Housing market indicators == [[File:Graph-house-prices-1975-2006.gif|360px|right|thumb|UK house prices between 1975 and 2006 adjusted for inflation.]] [[File:Shiller IE2 Fig 2-1.png|300px|right|thumb|[[Robert Shiller]]'s plot of U.S. home prices, population, building costs, and bond yields, from ''[[Irrational Exuberance (book)|Irrational Exuberance]]'', 2d ed. Shiller shows that inflation adjusted U.S. home prices increased 0.4% per year from 1890–2004, and 0.7% per year from 1940–2004, whereas U.S. census data from 1940–2004 shows that the self-assessed value increased 2% per year.]] In attempting to identify bubbles before they burst, economists have developed a number of [[financial ratio]]s and [[economic indicator]]s that can be used to evaluate whether homes in a given area are fairly valued. By comparing current levels to previous levels that have proven unsustainable in the past (''i.e.'' led to or at least accompanied crashes), one can make an educated guess as to whether a given real estate market is experiencing a bubble. Indicators describe two interwoven aspects of housing bubble: a valuation component and a debt (or leverage) component. The valuation component measures how expensive houses are relative to what most people can afford, and the debt component measures how indebted households become in buying them for home or profit (and also how much exposure the banks accumulate by lending for them). A basic summary of the progress of housing indicators for U.S. cities is provided by ''[[Business Week]]''.<ref>{{cite web |url=http://bwnt.businessweek.com/housing_boom/index.asp |archiveurl=http://web.archive.org/web/20071130085352/http://bwnt.businessweek.com/housing_boom/index.asp |title=Interactive Table: How Bubbly Is Your Housing Market? |publisher=''Business Week'' |date=April 11, 2005 |accessdate=2009-06-23 |archivedate=Nov 20, 2007}}</ref> See also: [[real estate economics]] and [[real estate trends]]. === Housing affordability measures === * The ''price to income ratio'' is the basic affordability measure for housing in a given area. It is generally the ratio of [[median]] house prices to median familial [[disposable income]]s, expressed as a percentage or as years of income. It is sometimes compiled separately for [[first time buyer]]s and termed ''attainability''.{{Citation needed|date=May 2011}} This ratio, applied to individuals, is a basic component of mortgage lending decisions.{{Citation needed|date=May 2011}} According to a back-of-the-envelope calculation by [[Goldman Sachs]], a comparison of median home prices to median household income suggests that U.S. housing in 2005 is overvalued by 10%. "However, this estimate is based on an average mortgage rate of about 6%, and we expect rates to rise," the firm's economics team wrote in a recent report.<ref>[http://mailman.lbo-talk.org/pipermail/lbo-talk/Week-of-Mon-20050314/005140.html]{{dead link|date=June 2009}}</ref> According to Goldman's figures, a one-percentage-point rise in mortgage rates would reduce the fair value of home prices by 8%.{{Citation needed|date=May 2011}} * The ''deposit to income ratio'' is the minimum required [[downpayment]] for a typical mortgage {{Specify|date=March 2007}}, expressed in months or years of income. It is especially important for first-time buyers without existing [[home equity]]; if the downpayment becomes too high then those buyers may find themselves "priced out" of the market. For example, {{As of|2004|lc=on}} this ratio was equal to one year of income in the UK.<ref>[[Nottingham Trent University]] [http://www.ntu.ac.uk/nbs/school/acad/afe/10710.pdf paper]{{dead link|date=June 2009}}</ref> <br break="none"> Another variant is what the United States's [[National Association of Realtors]] calls the "housing affordability index" in its publications.<ref>{{cite web |url=http://www.realtor.org/research/research/housinginx |title=Affordable Housing Real Estate Resource: Housing Affordability Index |publisher=National Association of Realtors |accessdate=2009-06-23}}</ref> (The NAR's methodology was criticized by some analysts as it does not account for inflation.<ref>[http://www.cepr.net/housing_affordability_index.htm]{{dead link|date=June 2009}}</ref> Other analysts, however, consider the measure appropriate, because both the income and housing cost data is expressed in terms that include inflation and, all things being equal, the index implicitly includes inflation{{Citation needed|date=February 2007}}). In either case, the usefulness of this ratio in identifying a bubble is debatable; while downpayments normally increase with house valuations, bank lending becomes increasingly lax during a bubble and mortgages are offered to borrowers who would not normally qualify for them (see Housing debt measures, below).{{Or|date=May 2011}} * The ''Affordability Index'' measures the ratio of the actual monthly cost of the mortgage to take-home income. It is used more in the United Kingdom where nearly all mortgages are variable and pegged to bank lending rates. It offers a much more realistic measure of the ability of households to afford housing than the crude price to income ratio. However it is more difficult to calculate, and hence the price to income ratio is still more commonly used by pundits. In recent years, lending practices have relaxed, allowing greater multiples of income to be borrowed. Some speculate that this practice in the longterm cannot be sustained and may ultimately lead to unaffordable mortgage payments, and repossession for many.{{Citation needed|date=May 2011}} * The ''Median Multiple'' measures the ratio of the median house price to the median annual household income. This measure has historically hovered around a value of 3.0 or less, but in recent years has risen dramatically, especially in markets with severe public policy constraints on land and development.{{citation needed|date=September 2011}} [[File:EconomistHomePrices20050615.jpg|thumb|right|Inflation-adjusted home prices in [[Japan]] (1980–2005) compared to home price appreciation in the [[United States]], [[Great Britain|Britain]], and [[Australia]] (1995–2005).]] === Housing debt measures === * The ''housing debt to income ratio'' or ''debt-service ratio'' is the ratio of mortgage payments to disposable income. When the ratio gets too high, households become increasingly dependent on rising property values to service their debt. A variant of this indicator measures total home ownership costs, including mortgage payments, utilities and property taxes, as a percentage of a typical household's monthly pre-tax income; for example see [[RBC]] Economics' reports for the Canadian markets.<ref>[http://www.rbc.com/newsroom/20050602affordability.html June 2, 2005 report]{{dead link|date=June 2009}}</ref> * The ''housing debt to equity ratio'' (not to be confused with the corporate [[debt to equity ratio]]), also called [[loan to value]], is the ratio of the mortgage debt to the value of the underlying property; it measures [[financial leverage]]. This ratio increases when the homeowner takes a [[second mortgage]] or [[home equity loan]] using the accumulated equity as collateral. A ratio greater higher than 1 implies that owner's [[Equity (finance)|equity]] is negative. === Housing ownership and rent measures === * The ''ownership ratio'' is the proportion of households who own their homes as opposed to [[renting]]. It tends to rise steadily with incomes. Also, governments often enact measures such as [[tax cut]]s or subsidized financing to encourage and facilitate [[home ownership]]. If a rise in ownership is not supported by a rise in incomes, it can mean either that buyers are taking advantage of low [[interest rate]]s (which must eventually rise again as the economy heats up) or that home loans are awarded more liberally, to borrowers with poor credit. Therefore a high ownership ratio combined with an increased rate of [[subprime lending]] may signal higher debt levels associated with bubbles. * The ''[[price-to-earnings ratio]]'' or ''[[P/E ratio]]'' is the common metric used to assess the relative valuation of [[equities]]. To compute the P/E ratio for the case of a rented house, divide the [[price]] of the house by its potential [[Earnings per share|earnings]] or [[net income]], which is the market annual [[renting|rent]] of the house minus expenses, which include maintenance and property taxes. This formula is: :: <math>\mbox{House P/E ratio} = \frac{\mbox{House price}}{\mbox{Rent} - \mbox{Expenses}}</math> :The house [[P/E ratio|price-to-earnings ratio]] provides a direct comparison to P/E ratios used to analyze other uses of the money tied up in a home. Compare this ratio to the simpler but less accurate ''price-rent ratio'' below. * The ''price-rent ratio'' is the average cost of ownership divided by the received rent income (if buying to let) or the estimated rent that would be paid if renting (if buying to reside): :: <math>\mbox{House Price-Rent ratio} = \frac{\mbox{House price}}{\mbox{Monthly Rent x 12}}</math> :The latter is often measured using the "owner's equivalent rent" numbers published by the [[Bureau of Labor Statistics]]. It can be viewed as the real estate equivalent of stocks' [[PE ratio|price-earnings ratio]]; in other terms it measures how much the buyer is paying for each dollar of received rent income (or dollar saved from rent spending). Rents, just like corporate and personal incomes, are generally tied very closely to [[supply and demand]] fundamentals; one rarely sees an unsustainable "rent bubble" (or "income bubble" for that matter). Therefore a rapid increase of home prices combined with a flat renting market can signal the onset of a bubble. The U.S. price-rent ratio was 18% higher than its long-run average as of October 2004.<ref>{{cite journal |title=House Prices and Fundamental Value |first1=John |last1=Krainer |first2=Chishen |last2=Wei |url=http://www.frbsf.org/publications/economics/letter/2004/el2004-27.html |publisher=[[Federal Reserve Bank of San Francisco]] |date=October 1, 2004}}</ref> * The ''gross rental yield'', a measure used in the United Kingdom, is the total yearly gross rent divided by the house price and expressed as a percentage: :: <math>\mbox{Gross Rental Yield} = \frac{\mbox{Monthly Rent x 12}}{\mbox{House Price}} \mbox{ x } 100%</math> :This is the reciprocal of the house price-rent ratio. The ''net rental yield'' deducts the landlord's expenses (and sometimes estimated rental voids) from the gross rent before doing the above calculation; this is the reciprocal of the house P/E ratio. :Because rents are received throughout the year rather than at its end, both the gross and net rental yields calculated by the above are somewhat less than the true rental yields obtained when taking into account the monthly nature of rental payments. * The ''occupancy rate'' (opposite: ''vacancy rate'') is essentially the number of occupied units divided by the total number of units in a given region (in commercial real estate, it is usually expressed in terms of area such as square meters for different grades of buildings). A low occupancy rate means that the market is in a state of [[oversupply]] brought about by speculative construction and purchase. In this context, supply-and-demand numbers can be misleading: sales demand exceeds supply, but rent demand does not. === Housing price indices === {{Main|House price index}} [[File:Case-shiller-index-values.jpg|thumb|The Case–Shiller index (national, quarterly) 1987–2008, showing a housing bubble peaking in 2006.]] Measures of house ''price'' are also used in identifying housing bubbles; these are known as [[house price index|house price indices]] (HPIs). A noted series of HPIs for the United States are the [[Case–Shiller index|Case–Shiller indices]], devised by American economists [[Karl Case]], [[Robert J. Shiller]], and [[Allan Weiss]]. As measured by the Case–Shiller index, the US experienced a housing bubble peaking in the second quarter of 2006 (2006 Q2). ==Real estate bubbles in the 2000s== By 2006, several areas of the world were thought to be in a bubble state, although this contention was not without controversy. This hypothesis was based on observation of similar patterns in real estate markets of a wide variety of countries.<ref>{{cite web |url=http://www.globalpropertyguide.com/real-estate-house-prices/A |title=House Prices Worldwide |publisher=Global Property Guide |accessdate=2009-06-23}}</ref> This includes similar patterns of overvaluation and excessive borrowing based on those overvaluations. The [[subprime mortgage crisis]], with its accompanying impacts and effects on economies in various nations, has given some credence to the idea that these trends might have some common characteristics.<ref name="LVRG"/> For individual countries, see: *[[Australian property bubble]] *[[British property bubble]] *[[Bulgarian property bubble]] *[[Canadian property bubble]] *[[Chinese property bubble]] *[[Danish property bubble]] *[[Indian property bubble]] *[[Irish property bubble]] *[[Israel's housing bubble]] *[[Japanese asset price bubble]] *[[Lebanese housing bubble|Lebanese property bubble]] *[[Polish property bubble]] *[[Romanian property bubble]] *[[South Korean property bubble]] *[[Spanish property bubble]] *[[United States housing bubble]] *[[Greek property bubble]] ==See also== *[[Real estate pricing]] *[[Real estate appraisal]] *[[Real estate economics]] *[[Deed in lieu of foreclosure]] *[[Economic bubble]] *[[Foreclosure consultant]] *[[:Category:Real estate bubbles of 2000s]] *[[Estate (house)]] ==References== {{Reflist}} ==External links== *''[[Barron's Magazine]]'' * [[John Calverley]] (2004), ''[[Bubbles and how to survive them]]'', N. Brealey. ISBN 1-85788-348-9 *''[[The Economist]]'', December 8, 2005, "[http://www.economist.com/finance/PrinterFriendly.cfm?story_id=5283797 Hear that hissing sound?]." *''[[The Economist]]'', June 16, 2005, "[http://www.economist.com/opinion/displayStory.cfm?story_id=4079458 After the fall]." *''[[The Economist]]'', June 16, 2005, "[http://www.economist.com/opinion/displaystory.cfm?story_id=4079027 In come the waves]." *''[[The Economist]]'', April 20, 2005, "[http://www.economist.com/agenda/displayStory.cfm?story_id=3886356 Will the walls come falling down?]" *''[[The Economist]]'', May 3d, 2005, "[http://www.economist.com/finance/displayStory.cfm?story_id=3722894 Still want to buy?]" *''[[The Economist]]'', May 29, 2003, "[http://www.economist.com/displayStory.cfm?Story_id=1794873 House of cards]." *''[[The Economist]]'', May 28, 2002, "[http://www.economist.com/opinion/displaystory.cfm?story_id=1057057 Going through the roof]." *[[Fred Foldvary]] (1997). "The Business Cycle: A Georgist-Austrian Synthesis." American Journal of Economics and Sociology 56 (4) (October 1997): 521–41. * {{Cite news |first= Steven |last= Gjerstad |author=[[Steven Gjerstad]] |authorlink= |coauthors= and [[Vernon L. Smith]] |title= [[From Bubble to Depression? Why the Housing Bubble Crashed the Financial System but the Dot-com Bubble Did Not]]| url=http://online.wsj.com/article/SB123897612802791281.html |archiveurl= |work= [[Wall Street Journal]] |publisher= |location= |page= A15 |pages= |language= |doi= |date=2009-04-06 |month= |year= |archivedate= |accessdate= |quote= }} *''[[The New York Times]]'', December 25, 2005, [http://www.nytimes.com/2005/12/25/business/yourmoney/25japan.html?ei=5090&en=32ab31a39ab94fe6&ex=1293166800&adxnnl=1&partner=rssuserland&emc=rss&adxnnlx=1135520091-wtUvV/njj/McXMan+wQK8w&pagewanted=all Take It From Japan: Bubbles Hurt]. *[[Robert Kiyosaki]] (2005). [http://www.richdad.com/pages/article_dollar_crisis_part1.asp All Booms Bust]'', ''[[Rich Dad, Poor Dad]]'' *[[Burton G. Malkiel]] (2003). ''The Random Walk Guide to Investing: Ten Rules for Financial Success'', New York: W. W. Norton and Company, Inc. ISBN 0-393-05854-9. *[[Robert Shiller|Robert J. Shiller]] (2005). ''Irrational Exuberance'', 2d ed. Princeton University Press. ISBN 0-691-12335-7. *[[John R. Talbott]] (2003). ''[[The Coming Crash in the Housing Market]]'', New York: McGraw-Hill, Inc. ISBN 0-07-142220-X. *[[Andrew Tobias]] (2005). ''The Only Investment Guide You'll Ever Need'' (updated ed.), Harcourt Brace and Company. ISBN 0-15-602963-4. *[[Eric Tyson]] (2003). ''[[Personal Finance for Dummies]]'', 4th ed., Foster City, CA: IDG Books. ISBN 0-7645-2590-5. *Benjamin Wallace-Wells, "[http://www.washingtonmonthly.com/features/2004/0404.wallace-wells.html There goes the neighborhood]", ''[[Washington Monthly]]'', 2004 April. *[[Elizabeth Warren]] and [[Amelia Warren Tyagi]] (2003). ''[[The Two-Income Trap: Why Middle Class Mothers and Fathers are Going Broke]]'', New York: Basic Books. ISBN 0-465-09082-6. *[[Dean Baker]], [[Financial Bubbles (Stocks and Housing) and How You Can Protect Yourself Against Them]], [[Center for Economic and Policy Research]] Economics Seminar Series.[http://www.cepr.net/index.php?option=com_content&task=view&id=10&Itemid=36][http://www.cepr.net/index.php/component/option,com_issues/task,view_issue/issue,11/Itemid,22/ Center for Economic and Policy Research] *{{PDFlink|[http://www.cepr.net/documents/housing_indicators_2006_06.pdf Is the Housing Bubble Collapsing? 10 Indicators to Watch]|153&nbsp;[[Kibibyte|KiB]]<!-- application/pdf, 156995 bytes -->}} Report by Dean Baker, June 2006 *{{PDFlink|[http://www.imf.org/external/pubs/ft/weo/2003/01/pdf/chapter2.pdf When Bubbles Burst]|354&nbsp;[[Kibibyte|KiB]]<!-- application/pdf, 363150 bytes -->}}, World Economic Outlook, International Monetary Fund, April 2003. *''[http://www.bergenjerseyforeclosures.com/blog/info/entry/where_should_house_prices_really Where should house prices really be and how did they get so high?]'' 2008 Analysis of how the US Real Estate Bubble developed and historical house price to income ratios that show just how big the bubble was and how far house prices are likely to fall. *{{PDFlink|[http://www.imf.org/external/pubs/ft/weo/2004/02/pdf/chapter2.pdf The Global House Price Boom]|367&nbsp;[[Kibibyte|KiB]]<!-- application/pdf, 376750 bytes -->}}, World Economic Outlook, International Monetary Fund, September 2004. *[http://ca.lp.org/lp20050802.shtml ''California’s Real Estate Bubble''] by [[Fred E. Foldvary]], covers the California, U.S., and global bubble from a [[Libertarianism|libertarian]] perspective. *[http://www.demographia.com/dhi-ix2005q3.pdf Demographia International Housing Affordability Survey] Comparative housing affordability for 100 large markets in the U.S., U.K., Canada, Australia, New Zealand and Ireland. *{{PDFlink|[http://www.levy.org/pubs/sa%5Fjan%5F06.pdf Are housing prices, household debt, and growth sustainable?]|342&nbsp;[[Kibibyte|KiB]]<!-- application/pdf, 350331 bytes -->}}, Levy Economics Institute of Bard College, January 2006. *{{PDFlink|[http://prices.kyero.com/files/2010/07/kyero-spanish-property-market-summary-q2-2010.pdf Spanish Property Market Summary (Data Included from 1985 to 2010)]|459&nbsp;[[Kibibyte|KiB]]<!-- application/pdf, 470,425 bytes -->}} Kyero.com, July 2010 *[http://vancouvercondo.info/coaster 35 years of house price in Vancouver BC as a rollercoaster] currently the least affordable market in North America. *[http://riotimesonline.com/brazil-news/rio-real-estate/rio-real-estate-shielded-from-burst/ Rio Real Estate Shielded From Burst] *[http://ideas.repec.org/a/erv/contri/y2011i2011-0513.html#statistics/ Housing Bubble Detection, J F Bellod] * [http://bdstanlong.com Real estate in hanoi, viet nam] {{DEFAULTSORT:Real Estate Bubble}} [[Category:Real estate bubbles| ]] [[Category:Economic problems]] [[Category:Economic bubbles]] [[da:Boligboble]] [[de:Immobilienblase]] [[es:Burbuja inmobiliaria global]] [[eu:Higiezinen burbuila]] [[fr:Bulle immobilière]] [[it:Bolla immobiliare]] [[he:בועת נדל"ן]] [[lt:Nekilnojamojo turto burbulas]] [[nl:Vastgoedzeepbel]] [[ru:Пузырь на рынке недвижимости]] [[fi:Asuntojen hintakupla]] [[sv:Fastighetsprisbubbla]] [[zh:房地产泡沫]]'