COAST TO COAST, DECLINING HOME PRICES AND RISING FORECLOSURES WILL COST U.S. FAMILIES OVER $2.6 TRILLION
As Senate Passes Legislation to Address the Housing Crisis and White House Threatens Veto, Analysis by Joint Economic Committee Shows Steep and Ongoing Costs of Housing Crisis
Washington, D.C. – While the White House has threatened to veto a number of housing bills being debated in Congress, including the recently passed Senate housing bill intended to aid families who are in danger of losing their homes, Senator Charles E. Schumer, Chairman of the Joint Economic Committee (JEC), released reports showing that the bursting housing bubble could cost over $2.6 TRILLION in household wealth from record numbers of subprime foreclosures and falling home prices.
The state-by-state report was prepared by the majority staff of the Joint Economic Committee and shows that nationally, home prices will decline over 11% from 2007-2009 and families in a majority of states will lose over $2.6 Trillion in housing wealth in that same period. Moreover, an additional 1.2 million families who took out subprime mortgages stand to lose their homes to foreclosure in 2008 and 2009 alone.
Schumer said, “The White House continues to ignore the 800 pound gorilla in the room – the nation’s foreclosure and housing crisis is the central cause of this recession; and unless we address it quickly, millions of American families will continue to see their economic fortunes decline. Families stand to lose over $2.6 trillion in housing wealth and in many cases and another 1.2 million families will likely lose their homes.”
The state by state charts can be found at www.jec.senate.gov.
The Joint Economic Committee, established under the Employment Act of 1946, was created by Congress to review economic conditions and to analyze the effectiveness of economic policy.
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