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Did Credit Market Policies Cause the Housing Bubble?
  • Edward L Glaeser, Harvard University
  • Joshua D Gottlieb, University of British Columbia
  • Joseph Gyourko, University of Pennsylvania
Between 2000 and 2006, the CaseShiller/Standard and Poor’s Housing Price Index increased by 74 percent in real terms, as America experienced a massive housing bubble. Moreover, prices in some metropolitan areas grew even faster. Prices in Los Angeles, for example, rose by 130 percent during this period while prices in greater Tampa rose by 97 percent over this time. As the bubble burst, that index dropped by a third and major financial institutions became insolvent, at least partially because of housing-related losses. What caused this great boom-bust cycle that tore through America’s housing markets?
Publication Date
May, 2010
© 2010 by the President and Fellows of Harvard College. The contents reflect the views of the authors (who are responsible for the facts and accuracy of the research herein) and do not represent the official views or policies of the Rappaport Institute or the Taubman Center for State and Local Government.
Citation Information
Edward L Glaeser, Joshua D Gottlieb and Joseph Gyourko. "Did Credit Market Policies Cause the Housing Bubble?" (2010)
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