The Housing Bubble Facts
, from The Center for Economic and Policy Research:
Over 2 million housing units are being built annually, while the number of households is only growing by 1.4 million a year.
Some regions of the U.S. have experienced a 60 percent increase in real home prices, while the average for the country as a whole is 45 percent. Historically, real home prices have not increased, as house prices have just kept pace with the overall rate of inflation.
The collapse of the housing bubble will have a larger impact than the collapse of the stock bubble, since housing wealth is far more evenly distributed than stock wealth.
The collapse of the housing bubble will likely throw the economy into a recession and require a federal bailout of the mortgage market. It could lead to a loss of 3.6 to 4.5 percentage points of GDP.
Maybe it's a good time to cash out and rent an apartment for a while...