By the end of January mortgage interest rates had risen to close to four-year highs, and the expectation of that rise briefly boosted mortgage applications for home purchase to eight-year highs. But demand has since edged back, and single-family activity will continue to be constrained by very low inventory. The multifamily rental vacancy rate dropped to 8.3% in the final quarter of 2017, reversing much of the rise seen over the previous three quarters. A decline in the share of young adults living with their parents is starting to boost household formation and, with so few homes for sale, demand for rental accommodation will hold-up.
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