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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (59266)	4/24/2006 1:50:50 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 110194

During World War II, virtually all residential construction was prohibited. Yet during this same period, Los Angeles became one of the primary production facilities for aircraft and ship building. what was that spike between 1942 and 1945 in LA real estate and then a subsequent decline? Looked pretty sharp like an event thing, but didn't coincide with anything except WWII? home.pacbell.net This influx of large numbers of highly paid workers had to be housed without much new construction. As a consequence, the number of people per building increased significantly. Every spare room in every home could be rented out to these workers at abnormally high prices. If you owned a home, apartment building, or any type of abode, the potential income which could be generated was phenomenal. As a consequence it should not be surprising that home prices in Los Angeles County rose dramatically during World War II, specifically from 1942 through 1946. By 1947, these workers were laid off and the prices of homes and apartment buildings declined to reflect the return of more normal conditions. The post-war housing boom peaked in 1967, which is clearly visible in lumber prices. It is interesting to note that peak home prices in 1967 were still significantly below the peak prices reached in 1947. Beginning in 1973, the demographics of the Baby Boom generation hit Los Angeles home prices. This demographic wave peaked sixteen years later in 1989. The most recent housing bubble, just ending, was the result of irresponsible credit policies and lending standards fostered by Alan Greenspan. .