3 Reasons Why The U.S. Housing Market Might Be About To Crumble

Sep. 18, 2022 9:00 AM ETAMH, AMH.PG, AMH.PH, AVB, BSRTF, BX, CPT, HOM.DB.U:CA, HOM.U:CA, INVH, XHB83 Comments

Summary

  • Homes are historically unaffordable.
  • New inventory is surging, sales volumes are plummeting, and interest rates are also rising.
  • Why homeownership's loss is multifamily's gain. We highlight 3 apartment REITs to buy today.
  • I do much more than just articles at High Yield Investor: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Real Estate Market Falls

ADragan

Co-produced by Austin Rogers.

In the last year or so, the fundamentals for nearly any kind of housing in the United States have scarcely ever looked better

  • Home prices have soared 30-40% or more
  • Rent rates have climbed
housing vacancy

Yardeni Research

30 Year Mortgage Rate data

YCharts

US home affordability

YCharts

US Housing Starts

YCharts

glut of newly built homes has quickly surged to its highest level since March 2009.

Federal Reserve

US Existing Home Sales

YCharts

US Existing Home Sales

YCharts

multifamily outperformance

BSR REIT

Armada Hoffler apartment complex

Armada Hoffler

Household formation: owners vs. renters

Yardeni Research

AvalonBay Communities apartment complex

AvalonBay Communities

BSR REIT apartment complex

BSR REIT

Camden Property Trust apartment complex

Camden Property Trust

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