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It Isn't Getting Better
Published on August 16, 2011 by Sara Foss

Over on his blog Bank Talk, my friend Adam Rust explains why the housing market is going to continue to struggle.

The piece is a bit wonkish, but what Adam seems to be saying is that whether you decide to buy a house or rent is determined by economics, and that when people don't have a lot of money, they opt to rent instead of buy. This seems fairly obvious, but since economists throughout the land failed to foresee the collapse of the housing market, and remain somewhat baffled by the lackluster pace of the recovery, I think it bears mentioning.

Of course, I am not particularly bothered by low housing prices, or being a renter, as I wrote in a column titled "In Praise of Renting" earlier this year at the DG.

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