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.”
Read the 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.
Desperate measures: Advocates weigh draining Lake Powell to fill Colorado River
Draining the reservoir could reduce evaporation losses by a couple hundred thousand acre-feet.
Eastern Nebraska is running out of electricity
Data centers and electrification are straining eastern Nebraska’s grid, throttling economic development.
Malls are becoming the midtowns of the future
Mall and office park redevelopments are a generational opportunity to create new nodes of urbanity.
NYC breaks ground on anti-flooding infrastructure project
New York City's new system will reduce stormwater flows to local sewers by 90%.
One Kentucky town’s secret to affordable housing
The Smoketown Community Land Trust has already built seven affordable homes for community members.
Houston gains petal-shaped cooling infrastructure to make streets more ‘delightful’
The city has installed the pavilions along 15 blocks in Houston.
FREE Course: Walkable City 1: Why Walkability?
After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.
Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold
The course focuses on the opportunities and imperatives that shape reinvention of mall sites.
City of Rosemead
Rutgers University, Edward J. Bloustein School of Planning and Public Policy
One Hundred Miles
University of Michigan School for Environment and Sustainability (SEAS)
Hunter College, City University of New York (CUNY)
The Architects Foundation
City of Cambridge
Montrose County
The Pocatello Development Authority