Safe as Houses Again, or the Next Big Crisis?
The tug-of-war between falling property prices and higher rates may be at a turning point that entices homebuyers back in. But the Fed could tamp down any rally that props up inflation.
A development emphasizing energy microgrids in California. Construction jobs have held up despite the housing slump.
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An Englishman’s home is his castle. A house of one’s own is also the main component of what largely defines the “American Dream.” And everyone remembers that not so much more than a decade ago, a fall in house prices triggered the worst financial crisis in living memory. Now the sector is back to the forefront yet again after the Federal Reserve chairman, Jerome Powell, said he expects housing inflation to slow by the middle of this year. Across the world, the same issues arise; bringing down house prices is arguably essential to controlling inflation, but taken too far, they can cause a crisis. Here’s a tour of the problem, which is bigger than the just the US or single-family homes.