Abstract
The global financial crisis of 2007–2009 helped attendant in a stronger consensus about the central role that housing plays in shaping economic activity, particularly during large boom and bust episodes. This research regards the causes, consequences, and policy implications of housing crises with a broad focus that includes empirical and structural analysis, insights from the current experience in the local and perspectives from around the globe. Furthermore, research indicates that fundamentals such as productivity, income, and demographics play an important role in generating sustained movements in house prices. The objective of this study is to investigate the influence of current financial crisis on the economies, societies, health and political systems of advanced countries and problems originated from this crisis. For this purpose, first we focused on macroeconomic variables to measure the impact on the economies of advanced countries. Then we have studied microeconomic variables to measure the impact of this crisis on the behavior of the citizens of advanced countries. The applied methods based on reviewing 15 different literatures from diversified peer reviewed journal regarding the factors that are affecting on the residential crisis from local and global perspectives. Our study found that this crisis has created a wave of unrest among the middle and low income segments of society, widen social gap, generated sense of security. The results are recommending that the housing and reconstruction organisations should adopt the building of apartments rather than flat houses and providing payments and mortgages for increasing the home ownership in Iraq and the world.