In 2007 when the housing market fell drastically it had quit an impact on the U.S. Economy. Not many people understand exactly how it effected the economy. It had a direct impact but also had many indirect impacts.

During the housing market crash, there was a steep down slope in employment. Many of the loss in jobs was direct, for example, residential construction saw a loss of 2.9 million jobs alone. There were also indirect losses such as in production of intermediate goods such as carpets, toilets, counter tops, and construction equipment. Since no houses were being built there was no need foe these intermediate goods.