Eddison Walters Housing Market Globalization Theory: Building On, Eddison Walters Real Estate Housing Technology Structural Change Transformational Theory (Published)
Today’s housing affordability crisis is caused by the failure to acknowledge technological advancements that globalized housing markets that were once local. Policymakers, banking regulators, and the academic community slept at the wheel. On the heels of the Dot.com bubble, policymakers eagerly stepped in to avoid another economic crisis, accepting the false theory of a real estate housing bubble. Policymakers never considered that the growth in home prices could be real. Two decades after the declaration of a housing bubble, home prices continue to increase rapidly today. Evidence is clear the housing bubble never existed. The growth in home prices was real. Despite all the evidence suggesting real estate housing bubbles never existed. Policymakers have struggled to address today’s housing affordability crisis because of the failure to change course on ineffective policies implemented to address a real estate housing bubble that never existed. Lower interest rates will not solve the housing crisis we face today. The experts who concluded housing bubbles existed were wrong. The idea that lower interest rates will decrease housing costs suggests policymakers do not understand the problem. The failure to understand the structural transformation of the housing market means policymakers worldwide are still at a loss for solutions to address today’s housing affordability crisis (Walters, 2024). The increased housing costs from the technological-structural transformation of the housing market between 1995 and 1999 resulted in globalized markets (Walters, 2024). The globalization of housing markets caused a significant shift in the demand curve of the global housing market that policymakers failed to address because policymakers accepted the misinformation of real estate bubbles as suggested by Eddison Walters Risk Expectation Theory of The Global Financial Crisis of 2007 and 2008 in Walters (2018). Walters and Djockic (2019) and Walters (2019) presented evidence supporting the theory developed by Walters (2018). The current research presents Eddison Walters Housing Market Globalization Theory that builds on Eddison Walters Real Estate Housing Technology Structural Change Transformational Theory.
Keywords: Eddison Walters Housing Market Globalization Theory, Eddison Walters Risk Expectation Theory, Walters Real Estate Bubble Impossibility Price Transparency Theory
The 3 Decades Global Financial Policy Failure in Housing Market, Runaway Home Prices, Today’s Growing Homeless Crisis: Eddison Walters Real Estate Housing Technology Structural Change Transformational Theory (Published)
Failure to address technological-driven structural changes in the real estate market that began three decades ago has caused runaway home prices that developed countries are experiencing today. The real estate crash that preceded the Global Financial Crisis, and the entire Global Financial Crisis resulted from the panic that was created about the rapid increase in home prices that was falsely labeled a real estate bubble by the media which was quickly adapted by policymakers. Policymakers and the media blamed greedy mortgage brokers for the rapid increase in home prices, accusing mortgage brokers of providing mortgages to too many people for homes that the borrowers could not afford. It turns out that the media and policymakers were completely wrong when mortgage brokers were falsely blamed for creating a real estate bubble because a real estate bubble never existed. The true cause of the rapid increase in home prices was the early stages of a real estate boom from technological-driven structural changes in the real estate market. Failure to address structural changes in the real estate housing market which started three decades ago, has resulted in runaway home prices in the United States and developed countries around the world. As a result of the failure widespread economic hardship from homelessness is a significant risk as working families find themselves priced out of the housing market. Three decades of economic policy failures and the mismanagement of the housing sector have resulted in a looming housing crisis that continues to increase as developed countries face runaway home prices. Policymakers throughout developed countries eagerly accepted the media-driven misinformation of a real estate bubble without any evidence presented supporting the narrative. The failure of policymakers to gain an understanding of factors that have been driving the rapid increase in home prices which began three decades ago, resulted in the real estate crash, Global Financial Crisis, and Great Recession. Much of the economic hardship and the looming housing crisis facing working families today could have been avoided. For many working American families, the prospect of home ownership no longer exists due to skyrocketing home prices. The looming homeless crisis facing the developed world today is the direct result of economic policy failures that have ignored the structural changes in the housing market for three decades. The move from print media real estate listings to online real estate listings and the adaptation of online mortgage loan applications along with automated mortgage underwriting between 1995 and 1999, exponentially increased the quantity of inventory needed in the housing market of developed countries. The shift in the demand curve for housing structurally changed the housing market in developed countries resulting in the complete transformation that saw the demand for housing skyrocket by 2000. New homebuyers who previously only had access to local housing markets before the transformation of the housing market began in 1995, had full access to homes listed anywhere online in other real estate markets by the end of 1999. The increased demand caused the rapid growth in home prices. Failure to implement policies to drastically increase home inventory in developed countries to address the structural transformation of the housing market which drastically increased the demand for homes was a significant economic policy failure. Instead of implementing policies to significantly increase home inventory, new construction was idle for over a decade as policymakers adopted the media-driven misinformation of a real estate bubble and supported policies to address the nonexistent real estate bubble.
Keywords: Eddison Walters Real Estate Housing Technology Structural Change Transformational Theory, Eddison Walters Risk Expectation Theory, Global Financial Crisis