One of the factors leading up to the Great Recession was the unprecedented run-up in residential housing prices. With the benefit of hindsight we can blame speculation for some of the price rise. But were there some positive outcomes also?
- Certainly homeowners who were able to sell before their prices crashed benefited
- But new research shows perhaps another unexpected benefit
- Elderly homeowners who were able to convert some of their price gains to cash and used it to hire home health care services
- Research shows a rise in this kind of activity during the housing boom
- These services allow elderly homeowners to receive professional care in their home rather than going to a hospital or nursing home
- Of course, when home prices plunged, this activity dropped – and unfortunately, some homeowners had trouble paying the loan
- But shows the widespread implications of the housing market