Andrew Sullivan posts a great interactive graph of foreclosures. What jumps out to me is how much the state you live in matters: state policies matter. I have no idea what state policies are in play here (my only experience with state housing policy is some work I did on title insurance - and I don't think that's involved here), but it's clear that they matter. Sometimes you have foreclosure in specific urban areas, but look at how Tennessee, Georgia, Florida, Ohio, etc. jump out at you. The bursts in foreclosures follow the state border. There's no obvious reason why that would be the case except for differences in state policy.
"There's no obvious reason why that would be the case except for differences in state policy."
ReplyDeleteThe alternative explanation is that it depends more on policies during the boom. In places where planning laws where restrictive few new homes would be built during the boom. In places where they are loose many new homes would be built. Then in the bust house prices would fall more than in the places with more restrictive planning laws.
It's not clear exactly how that would relate to foreclosures. But it could certainly have an effect.
Right, I think that makes sense too. It would relate to foreclosures, presumably, if easier legislation lifted another roadblock towards families getting houses that they can't ultimately afford.
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