The eviction crisis is starting to look a lot like the subprime mortgage crisis


Market Watch has the article The eviction crisis is starting to look a lot like the subprime mortgage crisis.

“Now, a new study shows that not all evictions are created equal. Scholars at Georgia State University, in conjunction with a ProPublica journalist, examined “serial” eviction filings, or those done repeatedly by a landlord against a tenant. By comparing serial evictions to ordinary ones, the researchers found patterns of landlord behavior and intentions, some of which are reminiscent of the worst of the housing crisis a decade ago.

This might be a warning about the source of the next crash. The housing shortage is pushing up rents and prices, but doesn’t seem to be spurring increased construction. What are the chances that real estate will be the cause of two crashes in a row? If we didn’t fix the problem that caused the last crisis, there is no reason why we shouldn’t expect a rerun.

Compare this to what happened in the 1930s. There were many laws and changes in regulations that were meant to prevent a repeat. Those changes were successful until they atarted being repealed in the 1980s.

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