About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (August 21, 2023)

handle is hein.crs/govempc0001 and id is 1 raw text is: Congjressional ____ ~ ~Research Service The U.S. Housing Recession August 21, 2023 Economists often look to the housing market as an indicator of the health of the economy. As the COVID- 19 pandemic accelerated, the housing market was relatively strong, characterized by robust demand, rising prices, and increased construction. Since the latter half of 2021, spending on residential construction has faltered, leading some to believe that the United States is or was in a housing recession. Some have speculated that lower spending in the housing sector is a sign that overall spending in the economy will decrease and that a housing recession will lead to an actual recession. This Insight discusses the concept of a housing recession, reviews housing market trends, and considers the extent to which housing market conditions may affect the broader economy. Background and Trends Economists use the phrase housing recession to refer to a downturn in the housing market. While many housing market indicators are considered in general discussions of housing recessions, for the purposes of this Insight, a housing recession will be defined by the amount of and spending on residential construction. Despite high home prices and rents, homebuilding has slumped. One of the main ways economists measure spending in the housing market is by tracking private fixed residential investment, a component of gross domestic product (GDP). Private fixed residential investment includes all spending on the construction of new single- and multi-family structures (both owner-occupied and rental), residential remodeling, and brokers' fees. This measure allows economists to not only track spending on housing but also tie it directly to overall economic activity. As shown in Figure 1, below, residential investment has been falling each quarter since the second quarter of 2021, most recently falling by 1.1% in the second quarter of 2023. Decreases in 2023 have been smaller than those throughout 2022, but as a result of nine straight quarters of decline, the level of residential investment is now about $167 billion less in real terms than it was in the first quarter of 2021. By this measure, one could assert that the United States is experiencing a housing recession. Congressional Research Service https://crsreports.congress.gov IN12227 CRS INSIGHT Prepared for Members and Committees of Congress

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most