Investment in housing, a highly cyclical component of GDP, is a significant source of its fluctuations. The recent events in the housing market have at the center of the meltdown of the financial markets and the deep recession that began in late 2007. This note provides some background information about the so-called real estate bubble and it will be some of the most important sources of volatility in investment in housing and real estate markets.

Investment in housing, a highly cyclical component of GDP, is a significant source of its fluctuations. The recent events in the housing market have at the center of the meltdown of the financial markets and the deep recession that began in late 2007. This note provides some background information about the so-called real estate bubble and it will be some of the most important sources of volatility in investment in housing and real estate markets.
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Alan R Beckstein
12 pages.
Publication Date: Dec 21, 2009. Prod #: UV3931-PDF-ENG
Investment in housing HBR case solution