A Drop in the Price of West Palm Beach Homes May Lead to a Recession
Since 1998, West Palm Beach homes have become increasingly unaffordable. This is due to the fact that the prices of West Palm Beach homes have been increasing faster than local incomes. In the late 90´s “a household earning the U.S. average family income had 41 percent more income than necessary to qualify for a mortgage on the average-priced home.” In the past seven years, that figure has dropped to 20 percent.
Eventually, the prices of West Palm Beach homes will have to cool, and some economists fear that when they do there will be a recession. The “slowdown will have national implications, although areas that have benefited most from the housing boom are likely to be hit the hardest.”
The strong demand for West Palm Beach homes created a lot of jobs in the construction, banking and real estate industries. When the market cools, “a basic driver for the local economy” will practically disappear. “Areas with a more diversified income base, such as manufacturing communities, are likely to weather the coming economic decline better.”
Eventually, the prices of West Palm Beach homes will have to cool, and some economists fear that when they do there will be a recession. The “slowdown will have national implications, although areas that have benefited most from the housing boom are likely to be hit the hardest.”
The strong demand for West Palm Beach homes created a lot of jobs in the construction, banking and real estate industries. When the market cools, “a basic driver for the local economy” will practically disappear. “Areas with a more diversified income base, such as manufacturing communities, are likely to weather the coming economic decline better.”
