Skip to main content

Housing market resilient to banking sector turmoil

The US housing market has been largely unaffected by the banking sector turmoil. Indeed, buyer sentiment rose to an 11-month high in April and activity appears to have bottomed out. Tighter credit conditions could yet weigh on the market, but the latest Senior Loan Officer survey reported only a modest tightening in the first quarter. We still expect buyers to face growing headwinds from a weakening economy, as the US enters a recession in the second half of the year. We think this will keep activity subdued and cause another dip in house prices. The recession will hit apartment demand too, which contracted in Q1. Alongside a surge in new supply that will prompt a small fall in rents this year.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access