Wednesday, 12 August 2015

Why housing isn't back in a bubble

This is the third of three articles about the US housing market.  Ex-housing, the US is in deflation currently at -1% YoY.  So the only current "inflation risk" that might justify the Fed raising rates is the appreciation in house prices.  In my previous two posts, I explained that both housing and apartment demand are supported by increased demographic demand, as the Millennial generation creates about the same affect on single and multi-unit housing as their Boomer parents and grandparents did 50 years ago.


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