Where Is The U.S. Housing Market Heading?

Feb. 02, 2023 4:06 PM ET, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 7 Comments

Summary

  • The housing/construction sector is dragging strongly on economic growth.
  • Right now, only the single-family market is dragging on growth. The downturn in multi-family and residential remodeling construction is still on the way.
  • Leading indicators of housing/construction have not turned higher.
  • The downward momentum of the construction sector will continue to influence the more lagging sectors of economic growth negatively.
  • Many pandemic excesses still need to be washed out of the construction cycle.
  • This idea was discussed in more depth with members of my private investing community, EPB Macro Research. Learn More »

A street of partially finished new homes in a new suburban housing development in Spokane, Washington, USA.

Kirk Fisher

The construction cycle in residential housing is the most important cycle in the economy.

The residential construction sector is often referred to as residential fixed investment, and although this sector only makes up 3%-6% of the total economy, the leading

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This article was written by

16.18K Followers

Eric Basmajian is the Founder of EPB Research, an economics-based research firm providing Business Cycle Research to asset managers and business owners.

Eric leads the investing group EPB Macro Research, where he applies his unique Business Cycle Framework, helping asset managers and business owners improve their portfolio strategy and long-term corporate planning. Learn More.

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