With the recent yield-curve inversion in March, talks of the next recession are becoming more frequent and news outlets are saying the housing market is slowing. The data however tells a different story. Housing demand remains strong and the market is actually severely under supplied, which is opposite of the last recession. In addition, Millennials who have been sitting on the sidelines are becoming a significant force in the market while retiring baby boomers remain as active as ever. Another important factor to consider is the speculation that was present in 2008 does not exist today. What this generally means is that when the next recession does occur the effects on the housing market are likely to be mild.
For a deeper dive on the data and to see what other factors are likely to effect housing we recommend you take a look at a recent report from our colleagues at RCLCO. Follow this link to view the article in it’s entirety – https://www.rclco.com/publication/impact-of-the-next-recession-on-residential-real-estate-markets/. They also put together the below infographic which does a great job summarizing where we are today and how past recessions impacted housing.
We hope you find this information helpful. Sincerely,
The Convergence Team