Your Dream House Maybe Better Comes Later

(11/1/2013) Owning your dream house is a recent American dream, which also triggered the housing bubbles mid 2000's. After the biggest recession in 2008, the US employment situation grew very slowly even though the overall recovery is good.  The national average unemployment rate in the US is still around 7.2% now. People call it "jobless recovery." What is the cause of low-job growth in the economic recovery after 2008? One of the reasons maybe the higher house ownership. Based on this study of economics professor Andrew Oswald from Warwick University, the states with higher house ownership is significantly related to their higher unemployment (their research covered some European countries too). The reason: the labor mobility drops because the labor prefers a job near the house. It may sound ironic at first, but it is pretty reasonable. The global economy now just changes so fast. A booming industry in a city may move to another state in 5-10 years. The employees who buy houses during the booming years face a big change in the job market once several business employers move somewhere. Then they are stuck.

Your dream house maybe better comes later.