Despite the housing boom in certain markets (such as New York, Los Angeles, and San Francisco), the real estate market is nowhere near the economic driver it once was.
“Investment in residential property remains a smaller share of the overall economy than at any time since World War II, contributing less to growth than it did even in previous steep downturns in the early 1980s, when mortgage rates hit 20 percent, or the early 1990s, when hundreds of mortgage lenders failed,” report Neil Irwin.
The problem is that the housing market is holding back the economic recovery of the entire economy. Explains Irwin: “If building activity returned merely to its postwar average proportion of the economy… The additional building, renovating and selling of homes would add about 1.5 million jobs and knock about a percentage point off the unemployment rate, now 6.7 percent. That activity would close nearly 40 percent of the gap between America’s current weak economic state and full economic health.”
Irwin examines Roanoke, Virginia to describe the sluggish market. One big reason for the market's malaise: lack of demand, in many cases caused by new patterns of “household formation.”
FULL STORY: Why the Housing Market Is Still Stalling the Economy
Millennials Not Ready to Leave Mom's Basement
During the Great Recession, household formation in the U.S. was well below historic levels, dimming the demand for new homes. Although many sectors of the economy have experienced sustained recoveries, household growth still lags.
Wave of Household Growth Likely Cresting, Relieving Crowded Housing Markets
A recent series of data on the growth of households in the United States reveals the unprecedented scale of housing demand in recent years.
State of the Nation's Housing: Housing Production, Supply Still Coming Up Short
The Joint Center for Housing Studies of Harvard University released its annual "The State of the Nation's Housing" report this morning. There are some signs of post-recession normalcy in the housing market for high-income earners.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning
SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.
The Tiny, Adorable $7,000 Car Turning Japan Onto EVs
The single seat Mibot charges from a regular plug as quickly as an iPad, and is about half the price of an average EV.
Seattle's Plan for Adopting Driverless Cars
Equity, safety, accessibility and affordability are front of mind as the city prepares for robotaxis and other autonomous vehicles.
As Trump Phases Out FEMA, Is It Time to Flee the Floodplains?
With less federal funding available for disaster relief efforts, the need to relocate at-risk communities is more urgent than ever.
With Protected Lanes, 460% More People Commute by Bike
For those needing more ammo, more data proving what we already knew is here.
Urban Design for Planners 1: Software Tools
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Planning for Universal Design
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Smith Gee Studio
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City of Camden Redevelopment Agency
City of Astoria
Transportation Research & Education Center (TREC) at Portland State University
US High Speed Rail Association
City of Camden Redevelopment Agency
Municipality of Princeton (NJ)