6 Ways The 2008 Market Crash Affect Us

The market crash dramatically affected the real estate business by increasing the cost of purchasing a home, and thus, monthly payment amounts for borrowers as well as making loans extremely difficult to receive. Throughout the market crash, real estate was affected as one of the hardest; one portion that was dramatically affected, was the price of home owning/renting. In the article,“6 Ways the 2008 Crash Is Still Affecting Us,” Nancy Mann Jackson explains that before the 2008 crisis, potential borrowers obtained mortgages easier, due to less stringent requirements, which led to people borrowing more than they could afford. Now people purchase homes that they can more realistically afford. The 2008 market crash damaged mortgages, this

led to the economic crisis affecting the housing prices by decreasing them dramatically. Additionally, as families struggled to qualify for mortgages, tenants struggled with paying their rent. Mark Uh states in his article, “From Own To Rent: Who Lost The American Dream?”, “Las Vegas saw the number of renter households jump nine percentage points to 49.4% of all households in the nine years prior to 2015.” (Uh). The number of renters rose sufficiently even several years later after the market crash incident. Over the years, people who lost their home had no choice but to rent which ideally made other people rich. As Amir Sufi and Atif Mian claim in their article “Why the Housing Bubble Tanked the Economy And the Tech Bubble Didn’t,” the housing bubble affected the economy dramatically as “the poor were much more vulnerable to a crash in housing prices in 2007 than the rich were. In fact, it was even worse for the poor because they used so much debt to purchase their homes.”(Sufi and Mian). Even if they already did own or rent during this economical crisis it was tough paying those bills. The lower middle class was in trouble because they would pay for their home while already being in debt. This troubled them because if you are in debt that means you owe money to the bank, and in this time period banks were already increasing housing payments so they had no money to fall back on which made it that much easier for them to be evicted.