https://gdp--ds-gdp-inflation-vs-new-homes.us-central1.hosted.app/
https://github.com/thebigduck/GDP-v-HousingPrices-
The purpose of this project is to plot for comparative insights the GDP and GDP adjusted for Inflation, overlayed with Housing Prices in the United States.
- Data Cleaning
- Data Visualization
- Predictive Modeling
- R
- Firebase
- React
- Next.js
- Lookerstudio
The Struggle for Homeownership: Economic Indicators and Their Personal Impact in an Era of Inflation
Introduction This investigation casts a spotlight on the personal struggles tied to economic indicators and their direct impact on the US housing market. It probes the stark reality that, as economic figures rise, the dream of homeownership dims for many, given the widening gap between housing prices and average incomes.
Historical Context
1980s Stagflation: A time when economic hardship and high inflation eroded personal savings, challenging the notion of home as an attainable asset. 2008 Housing Market Crash: A devastating blow to individual wealth, with a long-lasting effect on the ability to invest in real estate. 2017 Economic Fluctuations: A period of deceptive economic growth, potentially leaving individuals vulnerable to market forces and policy decisions. Data Compilation The study examines data from the Federal Reserve Economic Data (FRED) database, with a focus on:
Median New House Prices (https://fred.stlouisfed.org/series/MSPNHSUS): A reflection of the increasing difficulty for individuals to afford homes. GDP (https://fred.stlouisfed.org/series/GDP): Benchmark for our economic prospertiy as a country. Real GDP per Capita (https://fred.stlouisfed.org/series/A939RC0Q052SBEA): A metric that accounts for inflation, which reveals the true economic standing of individuals. Methodological Framework
Federal Debt Types:
Debt - Foreign and International Investors: This category includes debt held by foreign governments and international investors. It reflects the global trust in U.S. financial stability but also indicates the country's reliance on foreign investment. Debt - Federal Reserve: Debt held by the Federal Reserve includes securities bought as part of monetary policy operations. This debt type can influence interest rates and liquidity in the financial system. Debt - Public: This includes all U.S. Treasury securities held by domestic and international investors, including individuals, corporations, and state or local governments. This category has shown the most substantial growth, particularly after economic crises.
- https://fred.stlouisfed.org/series/FDHBFIN
- https://fred.stlouisfed.org/series/GFDEGDQ188S
- https://fred.stlouisfed.org/series/GFDEBTN
- https://fred.stlouisfed.org/series/FDHBFRBN
Data Contextualization: Adjusting historical data for inflation to align with the real-world experience of individuals. Exploratory Inquiry: Analyzing the disconnect between GDP, Real GDP, and the practicality of homeownership, mindful of the individual’s plight. Key Findings
Economic Hardships: The analysis uncovers the harsh truth that economic growth does not equate to increased wealth or homeownership opportunities for many. Housing Market Exclusivity: The escalating cost of homes is outpacing income growth, pushing the prospect of homeownership out of reach for the average person. Inflationary Erosion: The disparity between nominal and Real GDP growth rates highlights how inflation undermines the individual’s financial stability and purchasing power. Projections and Consequences
Homeownership Challenges: The study forecasts a continuing decline in homeownership rates, as economic pressures and inflated housing costs persist. Investment Impediments: For most, the largest investment of their lives—buying a home—is becoming increasingly unattainable. Final Reflections Our examination of economic indicators, in relation to housing prices and personal financial health, underscores the urgent need for policies that bridge the gap between economic growth and the real benefits felt by individuals, particularly in the context of homeownership.
My sources are :
- https://fred.stlouisfed.org/series/MSPNHSUS
- https://fred.stlouisfed.org/series/GDP
- https://fred.stlouisfed.org/series/A939RC0Q052SBEA
- https://fred.stlouisfed.org/series/FDHBFIN
- https://fred.stlouisfed.org/series/GFDEGDQ188S
- https://fred.stlouisfed.org/series/GFDEBTN
- https://fred.stlouisfed.org/series/FDHBFRBN
Clone this repo (for help see this tutorial).