Auto Industry Recovery vs. Housing Industry Recovery

Real Estate Agent with Keller Williams Realty Louisville East (502) 664-7827

The economic crisis is now about 5 or 6 years old. Cars break down and must be replaced. Houses do not need to be replaced.

Homeowners do not have to buy a new house every number of years. Homeowners can stay in the same house for decades. Renters do not have to buy a house. Pent up demand for housing can stay pent up.

By contrast, as cars age, they can literally stop running. As cars age, the maintenance cost can far exceed the cost of a replacement car. Millions of consumers must upgrade their car so they can get to work, go to grocery store and drive the kids around.

My simple-minded analysis of auto industry performance versus housing industry performance;

Cars: Must be replaced.

Houses: Don't have to be replaced.

This is why I do not extrapolate from the reported auto industry recovery to the housing industry.



Posted by



Dave Halpern, Realtor

The Dave Halpern Real Estate Group

Keller Williams Realty Louisville East


(502) 664-7827



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Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker


That's a very good analysis and your point is well-taken.


Jun 17, 2011 04:58 AM #2
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

James and Brian, thanks for backing my analysis. I can't back it up with a million dollar study full of Harvard economists. I'm just a humble observer of what happens in my neck of the woods.

Jun 17, 2011 05:14 AM #3
Mike Saunders
Lanier Partners - Athens, GA

Dave - I have two vehicles, each over 7 years old, they still work very well and I hope to have them at least another 3 years or more. That being said, I agree, the two are different. One does drive the national economy and the other local economies.

Jun 17, 2011 07:56 AM #4
Barb Van Stensel
Chicago, IL

Here's the flip side of the coin:  How many car owners maintain their cars and keep them running smooth to last as long as they can?

People assume that when they buy a home, it will last.  It will last longer if maintained just like the car.

Jun 17, 2011 12:34 PM #5
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