The Unassuming Economist

From Paul Krugman:

“Oh, my. Bill Nordhaus has died. He was a great economist, an inspiring teacher, a wonderful academic citizen — and my first mentor. As an undergrad I took a seminar taught by Bill and Tjalling Koopmans on the economics of exhaustible resources. Bill liked my term paper well enough to hire me as a research assistant on his classic 1973 paper “The Allocation of Energy Resources.” 

Bill taught me how to be an economist, how to puzzle out a complex real issue and try to frame a model to make sense of that issue. He also showed me that economics can and should be a mission as well as a job. I’ll write more about his contribution and what it was like to work with him soon, probably after the midterms, when I have time to do it right.”

On cross-country:

• Spain’s housing quandary stretches worldwide – Reuters
• Public Hearing on housing markets without speculation – European Parliament

On China:

• China Property Woes Bring Strains to Huafa’s $62 Billion of Debt – Bloomberg
• A Tale of Two Chinas. China’s economy is deeply unbalanced, with a battered real-estate sector, weak consumption, and stark regional disparities coexisting with dynamic tech and export sectors. But provided that political stability is maintained, China could continue to be a global powerhouse even as hundreds of millions of its citizens remain poor. – Project Syndicate

On Australia and New Zealand:

• [Australia] Developers warn federal aluminium tariff will send housing to the wall – AFR
• [Australia] Banks Loosen Loan Approvals in Housing Slump – Bloomberg
• [New Zealand] Homes selling for less than asking price – but only just, Realestate.co.nz says – RNZ

On other countries:  

• [Canada] Carney’s Housing Agency Vows to Build as Canada Prices Plunge – Bloomberg
• [Canada] Price of new single-detached homes in Vancouver 5X more than construction cost; 2X more in Calgary – Fraser Institute
• [Germany] You can’t confiscate your way out of a housing shortage. Threatening property rights is a peculiar way to encourage more construction. – Washington Post
• [Germany] German home prices stagnate as interest rates pressure market, IW data show – Reuters
• [Hong Kong] Hong Kong’s ‘Apartment Horror’ Films Skewer Its Ghastly Property Market. In one of the world’s least affordable housing markets, high-density housing is a backdrop for exploring superstition and socioeconomic anxiety. – New York Times
• [Hong Kong] Why Hong Kong rents are hitting records while home price gains lose momentum – South China Morning Post
• [Portugal] Thousands rally outside Portugal’s parliament over housing crisis, police operations – Reuters
• [United Arab Emirates] Dubai Real Estate Market Insights | Q3 2026 – REIDIN
• [United Kingdom] UK Homebuilders Fall as First Time Buyer Support Disappoints – Bloomberg
• [United Kingdom] Autumn Budget 2026: key messages for homeowners, landlords and first-time buyers. Even though it only applies to first-time buyers purchasing a new-build property, from a housing perspective by far the most important element of the Budget was the clarification of how the Your First Home scheme will operate. – Savills

On prices, rent, and mortgage:    

• 10 housing markets where sellers are cutting home prices, per Redfin. Home price cuts are common in these 10 metros, drawn from Redfin’s ranking of the 50 most populous U.S. metros, led by Denver and Indianapolis – Quartz
• Rents Face Renewed Upward Pressure as the Housing Supply Wave Fades – Apollo
• A Punishing Housing Market Is Squeezing Renters. Higher mortgage rates and slowing residential construction are again giving landlords the upper hand. – New York Times
• Uptick for Non-Conventional Financing in 2025 – NAHB
• Case-Shiller: National House Price Index Up 2.1% year-over-year in August. FHFA House Prices Up 2.4% Year-over-year in August – Calculated Risk
• Inflation Adjusted House Prices 3.9% Below 2022 Peak. Price-to-rent index is 11.0% below 2022 peak – Calculated Risk
• US single-family home prices rise further in August, FHFA says – Reuters

On sales, permits, starts, and supply:     

• NMHC: “Apartment Market Conditions Weaken” in October Survey – Calculated Risk
• If You Care About Housing Abundance, Minimum Lot Sizes Deserve Much More Attention – AEI
• How a paperwork bottleneck adds 39 percent to your rent. See how many housing permits your metro area authorized this year and how that pace compares with previous years. – Washington Post
• Which Construction Occupations Will See the Largest Job Gains Over the Next Decade? – NAHB
• New Home Sales Decrease to 676,000 Annual Rate in September. Median New Home Price is Down 13% from the Peak due to Change in Mix – Calculated Risk
• US new home sales fall in September; median house price drops from year ago – Reuters
• High Frequency Data: Inventory Up, Demand Down Year-over-year – Calculated Risk
• 10 housing markets where home sellers outnumber buyers. Miami, Tampa, Detroit, and other metros show how far home sellers outnumber buyers as U.S. buyer counts sink to a record low. – Quartz
• New Home Sales Slip Slightly in September – Realtor.com

On other developments:     

• The Trump Administration is Making Homeownership More Affordable – US Treasury
• Fact Sheet: President Donald J. Trump Decreases Housing Costs for Americans – The White House
• Treasury Unveils New Rules for Big Investor Homebuyers After Congress Set Limits – Realtor.com
• Trump signs order aimed at reducing single-family housing costs – Reuters
• I joined Scott Galloway on the Prof G Pod. My conversation with Scott Galloway and Kyla Scanlon about the housing crisis – Home Economics
• Homes Are ‘Seriously Unaffordable’ in Nearly a Third of U.S. Counties, New Report Finds – Realtor.com
• A Quarter of Remodelers Started ADUs Over Past Twelve Months – NAHB
• Economics of Housing in the Tri-State Region – New York Fed
• Why Housing Affordability Is the Top Issue for Gen Z Voters Ahead of Midterms – Realtor.com
• H1 2026 Investor Report: Small Investors Take Over as Institutional Buyers Retreat – Realtor.com
• Affordability Challenges Push New Home Sales Lower – NAHB
• Builders’ Data Center Boost Fails to Offset Weak Housing Market – Bloomberg
• The Pain Keeps Piling Up for the US Housing Market – Bloomberg
• Home Vacancy and ‘Zombie’ Rates Tick Down in Fourth Quarter – ATTOM
• How to Thaw the Frozen Housing Market – Heritage Foundation

On cross-country:

• The housing crisis is now global. It shows just how undemocratic our nations have become. When we can’t even afford to rent or buy somewhere to live, we have to ask: did we give the financial sector too much power? – The Guardian
• Two Asian giants, one economic trap. Tokyo lost decades when a property bust led to an economic slump. Could the same phenomenon undo Xi Jinping’s ambitions? – FT
• The housing crisis is not only about rent. From Singapore to New York, the hidden affordability story lies in spending power, not housing costs. – DWS
• Africa’s explosive growth in cities. The continent’s urban centres are set to expand by 19mn people annually, or by nearly two Londons a year. But urbanisation is not following a familiar path – FT
• Socialize All Housing. People are right to want control over their homes and their futures. Socialized housing, not private ownership, can make that promise a reality for everyone. – Jacobin

Working papers and conferences:  

• The Impacts of Unauthorized Immigration on U.S. Labor and Housing Markets: New Evidence from Administrative Microdata – San Francisco Fed
• Research Highlights the Broad Benefits of Homeownership – NAHB
• European housing markets – University of California
• The Welfare Impacts of Urban Renewal and Forced Relocation: Evidence from Chicago’s HOPE VI Demolitions – Philadelphia Fed
• Income Inequality, Borrowing Constraints and Housing–Led Boom–Bust Cycles – SSRN
• Housing, Property Insurance, and Climate Risk: A Review of the Literature – SSRN
• The Global Evidence on Housing Price Determinants – SSRN   

On China:

• China’s Export Boom Masks Deep Economic Problems at Home. Even as China makes strides in areas such as AI, much of its domestic economy is dragged down by gloomy consumer sentiment and a real-estate slump – Wall Street Journal

On Australia and New Zealand:

• [Australia] Meeting communiqué: Joint Ministerial Meeting on Housing Supply and Affordability, October 2026 – The Treasury
• [Australia] ‘Are they going to fall enough?’ The renters waiting for the house price downturn to change their fortunes. As property values fall across Australia, would-be home buyers share hope and scepticism that the soft market might be their big chance – The Guardian
• [Australia] House prices falling in every Australian capital city for first time in 15 years. House prices in Sydney are at a two-year low after falling 4.7% in the September quarter to $1.66m, according to Domain report – The Guardian

On other countries:  

• [Canada] Demand roars, supply whispers: Monetary policy and housing in Canada – Bank of Canada
• [Canada] Canada house prices vs peer countries and why we stand apart – CMHC
• [Portugal] Portugal housing protesters return to squares, vow to press on – Reuters
• [United Arab Emirates] Dubai Luxury Home Sales Fall From Record Levels as War Drags On – Bloomberg
• [United Kingdom] UK housing market showing signs of mortgage rates impact, Rightmove says – Reuters
• [United Kingdom] Rising interest rates derail property recovery as buyers recut deals. ‘Dire’ mood in sector as surging bond yields threaten deals agreed just a few months ago – FT
• [United Kingdom] UK annual house prices rise at weakest pace since March, ONS says – Reuters

On prices, rent, and mortgage:    

• Why Americans have stopped buying new homes. Mortgage lock-in is preventing nearly 1m property sales a year – The Economist
• Rising Mortgage Rates Risk Plunging Housing Further Into Crisis. Mortgage rates have pushed above 7 percent and home prices remain elevated, hurting the prospects of would-be buyers. – New York Times
• America’s New Housing Market Is All About Luxury—and It Runs on Cash. Surging mortgage rates are sending many buyers to the sidelines, while affluent shoppers are driving overall prices higher with big cash purchases – Wall Street Journal
• Mapped: Where Millennials Own vs. Rent in America – Visual Capitalist

On sales, permits, starts, and supply:     

• Could Embracing Sprawl Ease California’s Housing Crunch? Among the measures up for a vote in November is one that would amend the state’s landmark environmental law and make it easier to build large housing developments outside cities. – New York Times
• Single-Family Permitting Declines Through August – NAHB
• The Fierce Battle to Control How Americans Buy and Sell Their Homes. Mega-brokerage Compass is taking more listings offline, sparking backlash from rivals who say the practice is upending decades of market transparency – Wall Street Journal
• Part 2: Current State of the Housing Market; Overview for mid-October 2026 – Calculated Risk
• Housing Starts Decreased to 1.221 million Annual Rate in September – Calculated Risk
• Single-Family Starts Down as Affordability Challenges Persist – NAHB
• Housing activity struggles under weight of high rates and costs – RBC
• Builder Sentiment Falls on Rising Rates – NAHB
• High Frequency Data: Housing Slump Deepens. Pending Home Sales Down 7.3% Year-over-year, Homebuilder Confidence Below Pandemic Low – Calculated Risk
• Pending Home Sales Plunge to All-Time Low in Troubling Sign for Fall Housing Market – Realtor.com
• U.S. Housing Starts Dropped Again in September – Wall Street Journal
• US single-family housing starts plunge; building permits hit 3-1/2-year low – Reuters
• Nearly One in Three Construction Workers are Hispanic – NAHB 
• Bank Regulation, Construction Financing, and the Supply of New Housing. Bank regulations introduced after the 2008 financial crisis reduced construction lending and new single-family home sales, contributing to higher house prices and increased market concentration among home builders. – Cato Institute

On other developments:    

• Owning Beats Renting Only About Half the Time. Every buy and sell year since 1975, after taxes and costs – Home Economics
• YIMBYs, NIMBYs, and the Housing Cold War. A conversation with Salim Furth, a “median normal YIMBY” – Home Economics
• Market Clock 2026 Q3: As Rates Top 7%, Buyers Gain Leverage but Lose Purchasing Power – Realtor.com
• September 2026 Rental Report: Median Asking Rent Declines at the Slowest Pace in 3 Years – Realtor.com 
• U.S. Housing Market Index Drops in October to Lowest Level Since June 2012 – Haver Analytics
• Housing is grim for builders, buyers, and homeowners right now – Axios
• Housing Market Update: It Ain’t Pretty. Axios: “Builders can’t afford to build, buyers can’t afford to buy, and even the people sitting pretty with pre-2022 mortgages can’t afford to move.” – Jared Bernstein
• Housing Looks Awful. These Housing-Related Stocks Don’t. – Wall Street Journal
• Stagnant Housing Market? Not for Luxury Homes. And, real-estate giant CBRE is acquiring a company that equips data centers in a $1 billion deal – Wall Street Journal
• Top Housing Economist Issues Grim Forecast Revision as Higher Rates Slam the Market – Realtor.com
• Home Affordability Remains Strained as Mortgage Rates Rise – ATTOM