by Douglas Holtz-Eakin, Andrew Winkler
American Action Forum
November 19, 2012
While housing markets across Florida were hit hard by the housing bubble and bust, certain parts of the state are improving. Housing markets across the country, the majority of which are now improving, remain threatened by policies in Washington. The next Congress will have to address a debt the size of the U.S. economy. The key to sustained growth is to eschew heavy-handed interventions and instead pursue an agenda of job and income growth. Unemployment is still highly elevated in parts of Florida and the state’s laws have delayed the clearing of foreclosures from the market. While the benefits of strong growth and the timely clearing of distressed properties has been evident in cities like Phoenix, Arizona, Florida faces significant roadblocks, many of them self-induced, before an accelerated path to recovery can be consistently achieved around the state. The threats stemming from federal fiscal and regulatory policy should also not be underestimated.