Housing is local, so if you live in a town with an economy dependent on a small number of industries, and those jobs dry up, people are going to be leaving town. That would make that specific area’s housing prices crash. If it’s a major reducing in jobs (i.e. - the only factory in town closed, taking all the jobs with it), then there might be a permanent oversupply of empty houses (i.e. - Detroit).
I was about to say. I haven’t read the article, but wouldn’t that happen only if the housing market crashes?
Housing is local, so if you live in a town with an economy dependent on a small number of industries, and those jobs dry up, people are going to be leaving town. That would make that specific area’s housing prices crash. If it’s a major reducing in jobs (i.e. - the only factory in town closed, taking all the jobs with it), then there might be a permanent oversupply of empty houses (i.e. - Detroit).
The article doesn’t base it on anything other than, sellers want to sell. It’s all assumptions based on other assumptions.