Another negative: a lot of people bought houses out in the boonies and were willing to do the commute because their houses were going up-up-up in value. No one will want these houses in the boonies now. The pool of buyers for these houses (and there have been a lot of them built in the last few years all over the country) will be close to non-existant. The banks will not be able to sell them at any price since the market will be illiquid. Defaults will cascade since no one who needs to sell will be able to. In the better locations, houses will still sell, but at much reduced prices.
