Don’t Confuse Housing Recovery with Housing Strength
This week, we look at housing and conclude that, yes, it is contributing to growth again, but it is not contributing much. 2017 is not 2007. Ten years ago, housing contributed two percentage points to annual GDP growth. Now, it accounts for no more than a few tenths. Builders remain cautious, regulation continues to prevent young buyers from becoming homeowners. And, with the Fed raising rates, it’s not likely to get much better in a hurry.