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How the Government Distorts the Housing Market

If materials cost increases from the trade wars moderate, housing production could pick up.

By Les Shaver | January 17, 2020 at 06:53 AM
Photo by Shutterstock.

If you want to understand the ups and downs of housing over the past 20 years, it’s a good idea to start with government policy, says Cortland’s Chief Economist Brad Dillman.

It started in the late 90’s and 2000’s with the Federal government’s push to raise the home ownership rate, coupled financial deregulation and low interest rates coming out of the dot com recession. “We were off to the races with the housing boom and the housing bubble,” Dillman says.

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