The Effect of Lost Jobs on the Housing Market
The U.S. Housing market has supplied one third of all jobs created since 2001. These include jobs for builders, bankers, realtors, building suppliers, and many other dependent businesses. High house prices have enabled homeowners to take out equity on their homes (equity is the amount of money which their home is worth after all of the mortgage and any other debts or costs against the property are subtracted), boosting consumer spending and the economy.
As the housing crisis gets worse what will happen to the millions of workers the housing market has created? The single fact is that their jobs will be lost. When their jobs are lost, without any income, they could very well lose their homes just like many other unemployed people. This will lead to an even worse economy because when people do not have any money it is difficult for them to meet their basic needs. Then the banks kick in, giving out loans to the people who need them. These people then have a hard time paying the loans back since they don't have much money. This whole cycle causes the economy to fail which is happening in the United States. You can tell by the continued loss of jobs in the housing market and the fall in the amount of houses bought that the housing crisis is going to get a whole lot worse before it gets any better.