This paper examines the effects of the housing boom of the early 2000s on unemployment in U . S . metropolitan areas. A region’s share of housing units built between 2000 and 2006 has no effect on unemployment prior to the start of the Great Recession, but the extent of a region’s housing boom increases unemployment in over one‐half of the months analyzed during and immediately following it. Regression results based on a cluster analysis of metropolitan areas indicate that regions characterized by high growth rates of construction, retail, and hospitality employment during the early 2000s were hit particularly hard by the recession.
Gabe, T. M. (n.d.). Effects of the Housing Boom and Bust on U.S. Metro Employment. Growth and Change, 44(3), 391–414. Retrieved from http://resolver.scholarsportal.info/resolve/00174815/v44i0003/391_eothbaboume.xml.