The Policy Analysis Team recently read with interest a report prepared for The United States Conference of Mayors and The Council for the New American City entitled "The Mortgage Crisis: Economic and Fiscal Implications for Metro Areas." The report details how the recent real estate bubble, during which property values rose at unprecedented rates, led to a prolifieration of sub-prime loans. These loans, in turn, lead to an increase in foreclosures. The report warns of economic impacts to metro areas such as property value declines, fewer new home starts and decreases in government revenue.
Read thwe report here.
