For decades, the real estate market in the United States was a big-time moneymaker for big players like Apple and Microsoft, and a major driver of global growth.
But as the U.S. economy slowed, the value of real estate assets plummeted.
The median price of a single-family home fell by 17.6% between 2014 and 2016, according to data from real estate analytics company Zillow.
The average price of an existing home fell 20% in that same time frame, according a study by real estate research firm Zillows, and in many cases, even declined by more than 20%.
Meanwhile, home values in major metropolitan areas like Los Angeles, San Francisco, and Seattle all fell during the same time period.
The crash in real estate value meant that Americans spent less on their homes.
But when it came to the stock market, the market was much more volatile.
As a result, many Americans saw their purchasing power plummet, according in a recent report by the Center for Retirement Research at the University of Southern California.
This is a trend that has continued into the future, as the stock and bond markets have shown significant volatility in the past decade.
For many Americans, buying a home is a financial risk.
This year alone, the median price dropped by 13.5% on the S&P 500, according an analysis by Zillower.
This represents a drop of nearly $3,400 a year for the average American household, or about $14,200 a year.
The biggest hit on the American economy came in 2018, when the stock markets plummeted by nearly 30%.
The biggest losses on Wall Street in 2018 were on large American corporations, which lost more than $3 trillion, according research firm Morningstar.
But that loss of wealth on Wall St. didn’t stop there.
In 2018, the average value of a home fell 9.3% for homeowners, and this was due in part to the massive price declines across the country, according Zillotow.
The U.K. also saw a significant drop in the value it was able to purchase.
The country’s housing market collapsed as a result of Brexit, which saw the UK’s pound plummet by 25% and the dollar lose half a percent against the dollar.
The loss of value of British property and assets has also led to a large decline in consumer confidence.
In the United Kingdom, homeownership rates dropped from 69% in 2014 to 63% in 2016, Zilloview reported.
In the U, the price of houses is a major factor that can help a buyer in the short term, according Matthew Johnson, CEO of the Center on Home Finance at the Urban Institute.
He told Axios that the price drop in 2018 could have helped the country’s overall economy.
“If it was just the stock, we wouldn’t be in this predicament right now,” he said.
“We’ve been in a situation where we’ve had these very long periods of time in which the value is lower than the market value,” Johnson said.
“But this has not really been the case for homeownership in the U., and I think that is because homeownership has been a key driver of growth in the economy.”
As for the future of housing in the country?
The housing market may be back in the saddle.
However, Johnson said the price falls of the past couple of years have not translated into a new trend.
“In the United states, it’s still very much an expensive industry,” he explained.
“We’re not going to see a large rise in the market prices in the next couple of decades.”