Two Bright Spots in a Cooling Housing Market
Unlike previous crashes, multifamily rentals remain strong, with ample construction to provide jobs and a backlog that should last well into 2023.
Apartments are still going strong.
Photographer: George Rose/Getty Images North AmericaSurging mortgage rates and uncertainty about the economy have put the housing market on ice. Mortgage purchase applications dropped Wednesday morning to their lowest level in 25 years and single-family housing starts will soon be down 20% on a year-over-year basis. Historically, a drop of more than 20% in single-family housing starts has meant pretty good odds for an overall recession.
Yet the US economy added 263,000 jobs in September. And while the labor market is somewhat cooler from earlier in the year, it's a long way from anything that could be characterized as weak.