Consumption and House Prices in Ireland

Consumption and House Prices in Ireland
by Vincent Hogan and Pat O’Sullivan, Autumn 2007
esri.ie/UserFiles/publicatio … _Hogan.pdf

I think I have commented on this topic before.

House price bubbles tend to be *coincident *with consumption booms, they aren’t a dominating *causal *factor. And vice versa.

Consumption will fall because unemployment is rising and current and permanent income drops (which will be a result of falling construction in part), not because house prices are falling per se.