Median home prices and energy costs

This chart is about the 2004-2006 housing bubble.  Was it just an effect of energy prices directly on home construction?

I start with this:

Energy costs of house construction

I add on the energy of construction by personal estimate, and get the energy input to a new home is about 30 grand.  But energy costs tripled.  In the chart above the green line is median house cost, USA, divided by 1000.  So the cost of the median home went from 200k to about 390k, but the energy cost per home went from 30k to about 80k during the same period. That alone accounts for most of the bubble.

The red line are permits for new construction. The blue line is the ten year. The collapse in housing permits was mainly the energy cost and somewhat mortgage costs.

The real problem in housing was the collapse of the construction business in California and Florida. But California was dead by that time, all the truckers stopped working. The entire episode was mainly energy costs rising, and the transportation sector did a sudden stop, mostly in California.

Clearly an oil shortage.

The final proof is the outcome. We converted from a manufacturing economy to an oil producing economy. And we has planned on staying a manufacturing economy, it is built in to the pension system. We have a problem, as serious problem.

What about the financial crisis?

So what. The impact of the evidence is that the financial system sorts out its own stuff, they got it wrong, they share the cost of misjudging.   Pensions got fouled, certainly, but that is not a problem for the average worker, that was a problem specifically for the failed states, Illinois and California.  The lay offs, by this analysis were all a direct result of oil shortages.