The U.S. may or may not enter a recession this year, but if it does, housing is unlikely to be the cause, because it never really recovered in the first place, according to a New York Times commentary. The U.S. has had 11 recessions since the end of World War II, and all but two were preceded by a big decline in the housing market. “Housing is not in a position to lead this thing down,” said Edward Leamer, an economics professor at the University of California, Los Angeles. How much it can help prolong the overall recovery is another matter, according to the commentary. Home sales and prices have been sluggish in the face of rising interest rates. Still, the pace of construction, combined with pent-up demand from young adults, suggests that the sector should at least remain stable in the face of uncertainty elsewhere.
*The views expressed in this commentary are from the author/publication cited, are meant for informative purposes only, and are not an official position of ABI.
