New research shows that borrowing money at the beginning of the 21 st century has been a great investment, but you should also be mindful of the risks associated with doing so.
The research, published in the journal Banking and Finance, found that the average household in the U.S. borrowed more in 2011 than in 2003, and the average annual amount of borrowing doubled in just five years.
The study also found that homeownership rates fell in the first five years of the recovery, and they are now below the long-run average.
So what’s the reason for this reversal?
There are a number of factors that have played a part.
The first was the Great Recession.
The country has experienced some of the worst economic downturns in its history, and it’s been especially hard on the middle class.
The median household income fell from $61,000 in 2009 to $57,000 by 2021, according to the Census Bureau.
That was one of the largest drops among all major income groups.
The unemployment rate rose to 10.1% in 2021 from 8.8% in 2009.
Those are not small changes.
But those drops were caused by an economic recession that had lasted for nearly six years and left millions of Americans out of work for long periods of time.
A major part of the economic recovery has been the return of home ownership, as homeownership rose steadily over the last decade.
That’s partly because of the Great Depression, which had a massive impact on the economy.
The Great Recession also coincided with a sharp increase in household debt, which was the biggest contributor to the financial crisis.
The average household owed $2,000 more in total debt in 2011 compared to 2003, but the average debt increased by $1,300 in just a few years.
So, homeownership is still a big part of household finances.
The next factor contributing to the decline in home ownership was the economic recession.
The number of Americans working in the United States dropped sharply during the Great Stagnation.
That led to a drop in home values.
Many people who were able to move back home to be with family, friends, or relatives could no longer afford to live in their old houses.
And many families that had already experienced significant economic hardships suffered even more.
So the average homeowner in the US now owes $4,200 in mortgage payments, which is about $15,000 less than they did five years ago.
That trend is expected to continue into the future, as more and more Americans move back to their old homes, and more of the population is starting to see their income stagnate.
The Bottom Line There are many reasons that the economy is slowing, but one of them is that the housing market is still struggling to recover from the Great Collapse.
And that’s a problem for all households, not just the middle and upper class.
A decline in homeownership could be a huge factor in the economic slowdown, as well.
If you own a home, you could be paying higher interest rates than before, as home values have already declined and people who can afford to pay those interest rates could have difficulty refinancing their mortgage.
That could lead to higher mortgage payments over time.
The same goes for a reduction in the number of jobs.
According to the Bureau of Labor Statistics, the unemployment rate in the year ending in June 2019 was 4.4%, compared to 9.4% in June 2017.
The jobless rate fell from 8% to 6.6% during the recovery.
But it is expected that it will drop further in the coming months.