Don’t Worry About a Housing Bubble

Peter Coy writes over at Bloomberg about the worries of bubbles forming in the economy. He explains that housing is not one…

THIS IS NOT 2008: “The peak of the homeowner vacancy rate, at just shy of 3%, was 2007-08, when there really was a bubble in the housing market.”

  • 2021 COULDN’T BE MORE DIFFERENT: “The homeowner vacancy rate is 0.9%, equaling the lowest in Census Bureau records going back to 1956”
  • WHAT THIS MEANS: The current shortage of houses is pulling on the basic supply and demand levers. With demand up and supply down there is no place for prices to go but up

THIS DOESN’T MEAN THERE AREN’T PROBLEMS: “To be clear, this is nothing to be happy about, even if current homeowners are pleased to see their equity growing. Affordability is falling, especially for first-time buyers.”

KEEP READING at Bloomberg