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Rising prices of accommodations causing housing bubble?

When things get tough in life, we have this intense urge to cut everything back to the bare essentials. Tiny houses, minimalism, less-is-more, back-to-basics – these are all strategies to make sure that we are getting our most basic needs met daily without getting distracted by the shiny objects in life. According to the 75 years of psychology, the basic requirements for the existence of human life are food, shelter, water, sleep, connection, and novelty. These six needs, when met, allow for a person to develop the self-esteem, security, belonging, actualisation, and the other expressions of contentedness.
However, when it comes to the basic necessity of accommodation, it isn’t as easy to get it as other necessities as the cost of getting them in the United States is surging upwards. As the astonishing statistics portray, the value of all homes in the U.S.increased by $1.7 trillion to $27.5 trillion. This increase in the overall prices may be a point of cheering for the sellers of houses; it may not be fair to the nation’s economy as opined by Joseph Giglio, an executive professor of General Management in the D’Amore-McKim School of Business at the Northeastern University. He cautions everyone how this rise in home prices could be a prescient sign of another housing bubble.
A real estate bubble or housing bubble is a type of economic bubble that occurs periodically in local or global real estate markets and typically follows a land boom. Joseph analysed the reasons behind this land boom and claimed, “the onset of soaring oil prices shattered this comfortable trade-off. As gasoline prices skyrocketed, the costs of auto commuting became an increasing burden.” Not only this, he feels that the low-interest rates were majorly responsible for sparking a new wave of home buying.
Harminder Singh