Date of Submission
Open Access Senior Thesis
Bachelor of Arts
© 2016 Bruce D Service
Using MSA level data, the paper shows, that geographic areas which experienced the largest housing bubble generally suffered a more serious subsequent economic downturn. More specifically, the paper establishes that MSAs with larger declines in housing permits had larger increases in unemployment. There also appears to be strong evidence of a correlation between the magnitude of a housing boom and the timing of the decline in housing permits. MSAs which experienced larger real housing inflation offered early indications of the subsequent Great Recession.
Service, Bruce Dale, "What Goes Up Must Come Down: The Relationship between the Housing Market Boom and the Subsequent Economic Downturn: Evidence from the MSA Level" (2017). CMC Senior Theses. 1502.