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.
The End of Single-Family Zoning in Arlington County, Virginia
Arlington County is the latest jurisdiction in the country to effectively end single-family zoning.
The ‘Goldilocks Zone’ for Office Conversion
A formula for the ideal office-to-housing candidate.
Seattle Bus Lane Cameras Capture Over 100,000 Violations
An automated traffic enforcement pilot program caught drivers illegally using transit lanes more than 110,000 times in less than a year.
Millennials Now Majority Homeowners
Just over half of people in the ‘Y’ generation now own homes, but the largest generation also continues to dominate the rental market.
Minnesota Lawmakers Propose New Ridehailing, Delivery Fees
The proposed fees on transportation network companies and delivery services would help cover buddget shortfalls for transportation and transit in the state.
Part of Houston’s Main Street to Be Permanently Pedestrianized
A seven-block stretch downtown will remain closed to cars after the success of a pandemic-era outdoor dining program.
City of Malibu
Association of Metropolitan Planning Organizations
Strategic Economics Inc
HUD's Office of Policy Development and Research
HUD's Office of Policy Development and Research
HUD's Office of Policy Development and Research
City of Spearfish
City of Lomita
Urban Design for Planners 1: Software Tools
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Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
