Throughout 2005, Average Home Prices in the United States Soared

Essay

Throughout 2005, average home prices in the United States soared to record highs. Clearly those individuals who were purchasing homes were paying more for them. But what about the people who were not buying homes? In particular, were people who did NOT own homes affected by this housing bubble? Explain. (Hint: What impact did this substantial increase in the price of owner-occupied housing have on the price of rental housing?)