Short Term Consequences of the Housing Bubble

The housing bubble has many effects. What are the pluses and minuses of this housing bubble? Tthe below lists are just some of the effects of the housing bubble.

Short Term Pluses ( while the housing bubble has not popped)

• 'Helping' the economy
• Jobs being created
• Strong consumer spending
• Rising amount of assets
  

Short Term Minuses ( while the housing bubble has not popped )

• Significantly reduced amount of affordable housing
• People stretching and overextending themselves to buy houses ( 'house poor')
• Lack of investment in export orientated industries.
• Contributes to the trade deficit by encouraging more spending by people using home equity loans