The typical university tuition is over-priced. Once can get employable credentials or education with much less of an investment. That said, a comparison with the housing market does not provide a particularly clear parallel of the dynamics involved.
* In the housing market, there were a significant number of investors speculating and "flipping" properties. A major difference with college degrees is that they have a single owner.
* A brand new pool of college applicants becomes available each year. Based upon borrowing practices and selection of majors, they for the most part appear unaware of the consequences of the expense. The initial four-year degree is generally only acquired once per buyer.
* A house could be sold or re-possessed to immediately recapture some of its value. There is no way to resell a degree to effectively withdraw a portion of its cash value.
The common factor that will have a more immediate effect is the availability of government loans. If there would be a "credit crisis" for education that would result in student loans becoming more scarce, the resulting reduction in demand could lead to something of a "bubble burst" scenario.
* In the housing market, there were a significant number of investors speculating and "flipping" properties. A major difference with college degrees is that they have a single owner.
* A brand new pool of college applicants becomes available each year. Based upon borrowing practices and selection of majors, they for the most part appear unaware of the consequences of the expense. The initial four-year degree is generally only acquired once per buyer.
* A house could be sold or re-possessed to immediately recapture some of its value. There is no way to resell a degree to effectively withdraw a portion of its cash value.
The common factor that will have a more immediate effect is the availability of government loans. If there would be a "credit crisis" for education that would result in student loans becoming more scarce, the resulting reduction in demand could lead to something of a "bubble burst" scenario.