US housing outlook.
US property prices are well above the pre-2008-09 global financial crisis housing ‘bubble’ level but there is much variation across cities. Higher prices have not encouraged home construction, which remains low by historical standards. While household formation slowed in the first few years after 2008-09, it has picked up in recent years. However, fewer households are buying homes than before 2008-09, partially as zoning legislation is tightening in major cities and partly as demographic and social trends are increasing the average age of first-time homebuyers.
The political tide will continue shifting against 'big tech', making regions where the tech sector is key at risk of a house price crash.
The Council of Economic Advisors report will raise attention on homelessness, which is much worse in states with less affordable housing.
The rising cost of US higher education will continue delaying the average age at which households form, raising the age of homebuying.
