There is a good saying in China, which is "food, clothing, housing and transportation".
These four short words perfectly explain the four most basic needs of people in their daily lives.
In fact, this word is not only applicable to China, but is also commonly used around the world.
Even though foreigners have blond hair, white skin and blue eyes, they still need food, clothing, housing and transportation in their daily lives!
For a natural person, clothing, food and transportation are easy to take care of, but "housing" is definitely a big burden, especially for a family. If there is no fixed place to live, can it still be called a home?
Therefore, since ancient times, not only the Chinese, but even foreigners have attached great importance to housing.
This tradition continues to this day and is still applicable.
Don't think that only Chinese people like to buy houses and land in this world. Foreigners are also like this. Don't you see those rich foreigners, each of them has a villa, a manor or even a castle? Even poor foreigners have to buy an apartment to live in.
Therefore, in foreign countries, since the Industrial Revolution, especially after entering the 20th century, the real estate business has become a very important business. In the development process of any developed country in the world, the real estate business has become an important part of its economic composition, and no one can ignore it.
Even in modern times, the real estate business around the world is still a very important part of the economic structure of each country, and no government can ignore the real estate business.
Take the United States, the world's largest country, for example, real estate business is also very important.
The real estate business in the United States is very developed and occupies an important position in the national economy. Of course, because the United States is the fourth largest country in the world, with a land area similar to that of China, but a population several times smaller than that of China, not even a fraction of China's population, the real estate economy is not as important in the economic composition of the United States as it is in China today.
But even so, once the US real estate economy is in crisis, it will inevitably lead to turmoil at the basic level of the economy. As the world's largest economy, once the basic level of the US economy is in turmoil, it will inevitably lead to various economic crises, thus affecting the whole world.
In fact, since the 1960s, the US real estate economy has experienced four "crises" in succession. Every time a real estate economy crisis occurs, the economy of the entire United States and even the world will be turbulent.
According to official data from the United States, the actual transaction housing prices in the United States rose nearly 14 times in the 47 years from 1963 to 2011, and rose 16.7 times from the peak in 1963 to 2007. During these 47 years, the average annual increase in housing prices in the United States was 5.9%. In general, the housing prices in the United States fluctuated slightly, but the general trend was a steady increase.
During these 47 years, the U.S. real estate economy has experienced four major fluctuations, the first of which occurred in 1969.
In that year, due to the Vietnam War, the Arab countries' sharp increase in oil prices and the oil embargo, the United States experienced its fifth economic crisis since World War II, causing mortgage interest rates to rise from 7% to 8-11% and housing market prices to fall, thus starting the "first real estate crisis."
The real estate crisis lasted for about three years. House prices bottomed out in 1972, then quickly returned to pre-crisis levels and began a sharp rise in the first few years.
The second real estate crisis in the United States broke out in 1981. In that year, due to the instability in the Middle East and the sharp rise in oil prices, the US economy suffered from severe stagflation and a sharp increase in unemployment.
Under such circumstances, mortgage rates quickly rose to 18%, and primary lending rates reached 22%. People were full of pessimism about the market, believing that housing prices would be difficult to recover in the next decade, so real estate transactions shrank significantly.
But in fact, this real estate crisis lasted only two years, and then US house prices returned to the upward track.
As for the third real estate crisis in the United States, it occurred in 1991. However, compared with the previous two real estate crises that affected the entire country, this crisis did not affect a large area and only broke out in a few limited states such as California.
The third real estate crisis also lasted about two years. Then, starting in 1993, the US real estate economy entered a fourteen-year period of prosperity until the fourth real estate crisis.
Compared with the previous three real estate crises, the real estate crisis that broke out in 2007 almost killed the United States, and not only did it severely damage the U.S. economy, but it also triggered an economic crisis around the world. And unlike the economic crises caused by the previous three real estate crises, the global economic crisis caused by this fourth real estate crisis is much more serious. Not only did the U.S. economy suffer, but the economies of many countries in Europe, Asia, and Oceania also suffered. The global financial crisis caused by this real estate crisis has caused more serious consequences than the U.S. stock market crash in 1987, and is even hailed as the most serious economic crisis after the Great Depression in the United States in the 1930s!
The root cause of this US real estate crisis lies in the greed of investors!
In the late 1970s and early 1980s, the stagflation crisis broke out in the United States, which not only led to the second real estate crisis in the United States, but also affected the financial situation of the whole world.
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