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Opinion on economic issue - Essay Example

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In this regard, it has been recognized that the price of home and shelter is increasing every day. With regard to this particular issue several problems…
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Opinion on economic issue
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Download file to see previous pages In this context, in order to identify the potential causes of the rising rental inflation in the US, the study has relied on varied academic articles and business reports.
In accordance with the viewpoint of Madigan, the average rent of the apartments had increased to 3.1% in the US market during the last year in comparison to the year 2012 (Madigan, “Why Rising Rents Haven’t Pumped Up Inflation”). On the other hand, Keely, Ark, Levanon, and Burbank, arguably claimed that the cost of housing property is decreasing in the US market in the recent days. In this regard, Keely, Ark, Levanon, and Burbank argued that the buying demand of the housing property has been dramatically reduced during the last few years in the US. Contextually, several economists have believed that rising price of food and energy has influenced the demand of real-estate in a negative manner (1-49). On the other hand, Madigan claimed that rising prices of medical services, education and communication services have indirectly affected the demand of the real-estate in the US marketplace (Madigan, “Why Rising Rents Haven’t Pumped Up Inflation”). However, Keely, Ark, Levanon, and Burbank arguably claimed that the rental demand on the US market has dramatically increased in the last few years (1-49). In this regard, it can be asserted that financial crisis and high rate of interest as well as the mortgage burden has affected the demand of the household buyers. On the contrary, it has influenced the tendency of renting residential, which has caused high inflation in the domestic market place (Madigan, “Why Rising Rents Haven’t Pumped Up Inflation”; Keely, Ark, Levanon, and Burbank 1-49).
Based on the above discussion, it has been recognized that the cost of real-estate property has reduced in the US market due to high rate of interest. At the same time, it has been also recognized that 38.2% of the US population are associated with mortgage household property, which signify that the ...Download file to see next pagesRead More
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