U.S. Outlook: Is housing ever going to recover?

Scott Anderson
Posted by Scott Anderson
Chief Economist

This week brought another round of lackluster housing news.

In fact, two indicators have prompted us to trim our housing starts forecasts for the first half of this year.

Graph showing downward trend in privately owned housing startsFor more on what this means and other economic developments this week, see my full analysis. Highlights are outlined below, followed by a link to the full U.S. Outlook report, delivered on April 17.

Key observations:
  • The period of chronically high unemployment and poor career prospects for recent graduates with high student loan debt appears to be largely behind us.
  • In fact, household formation is making a huge comeback.
  • Housing affordability is up, with the most recent homebuyer affordability index (January) at the highest level since April 2013.
  • There are real fundamental reasons to remain optimistic about housing’s future.

Click here to read my full report.

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