Question

Between 1995 and 2005, the housing market in the United States was booming. Builders were having a difficult time keeping up with the demand for new houses. What was the most likely consequence of this situation?

a) Undocumented construction workers from other countries came to the United States.
b) The value of the dollar increased relative to the value of other currencies.
c) The value of homes decreased over the same period.
d) Salaries for unskilled workers in non-construction jobs declined.

Answer 1

The most likely consequence of the booming US housing market between 1995 and 2005 was the influx of undocumented construction workers to meet the high demand for new houses. The homeownership rates rose during this period, and housing was seen as a safe investment.

Step-by-step explanation:

Between 1995 and 2005, the United States housing market was experiencing a boom, with builders struggling to keep up with the demand for new houses. The most likely consequence of this situation was option (a), where undocumented construction workers from other countries came to the United States. This influx was a result of the high demand for labor to build new homes, and the necessity to fill positions quickly often led to hiring workers irrespective of their documentation status.

During this period, the homeownership rates increased significantly. This rise was facilitated by factors such as the sense of economic security, changes in bank regulations making it easier and cheaper for banks to offer home loans, and a shift towards considering housing as a safe financial investment. The demand for new houses raised the number of construction jobs, which could have attracted more workers, including undocumented ones, to meet the labor needs.