Pianalto, Sandra

Our research has led us to understand that the housing market collapse is the result of a destructive cycle that feeds on itself. In our region, mortgage delinquencies led to a high number of foreclosures, which led to an oversupply of housing, which led to home prices depreciating and borrowers and financial institutions taking on big losses.

To break this cycle, a coordinated set of policies is needed to target multiple points of the breakdown in the housing market.