In this article the author expresses that home prices and renting prices will be declining within the coming year. The reason for this is due to there being way more people in the population than there is will housing expansion. In the article it expresses that from the people who own property that mortgage rates are getting higher being 6.70% which pushes monthly payments up 54% opposed to prior mortgage rates being 2.96% on the same exact loan amount, it then went into speaking on how with apartments that rent would be continuing to rise while people are not able to keep up with it due to their income not raising with the rent overall. The article then went on to explain that we will be seeing a housing downturn in the near future, but it will not be as unfortunate as the 2008-2009 recession. Due to those factors the article states that a recession will come and cause distress for some families, but there will not be widespread repercussions within the housing market overall.
The chapter that I feel like made the most connection to this article would be Chapter Three: “How to Anticipate Recessions and Downturns” In this chapter we learn about what causes a recession, how they work, and we also learn how to prepare for them. One specific connection from the chapter that I feel like relates back to the article the best is learning about monetary policy and how the federal government is able to slow down economy by tightening their monetary policy. What this does is decrease the supply of money or it will raise interest rates. This ties back into the article because it talks about how the costs of renting out homes and apartments have risen faster than incomes have been able to which increases the interest rate on payments overall.