Housing View – July 29, 2022

On cross-country:

  • How high property prices can damage the economy. A fresh strand of research studies the consequences, both in China and the rich world – The Economist
  • The Housing Slowdown Could Become a Global Meltdown. Frothy prices in New Zealand, empty buildings in New York and a mortgage revolt in China have the capacity to make things much worse. – Bloomberg 
  • Neighbourhoods won’t be improved by banning the unemployed – VoxEU  

On the US:    

  • Treasury Announces New Steps to Increase Affordable Housing Supply and Lower Long-Term Housing Costs for American Families – US Treasury
  • U.S. Treasury to allow COVID funds for state, local affordable housing loans – Reuters
  • We Need to Keep Building Houses, Even if No One Wants to Buy. Right now, builders have too many homes and not enough people to sell them to. In the long term, the United States has the opposite problem: Not enough houses for all the people who want them. – New York Times
  • Can We Escape a Crash? The Housing Market Is Saying Yes. Rising mortgage rates crushed affordability and led to softening demand, but much-needed cost relief is allowing builders to sweeten the deal for buyers without destabilizing the broader economy. – Bloomberg
  • Is Housing Market Becoming More Balanced? – Bloomberg
  • U.S. housing cooldown is recession red flag for markets – Reuters
  • Boise’s Housing Market Boomed Early in the Pandemic. Now It Is Cooling Fast. ‘Zoomtowns’ that drew remote workers are now expecting prices to fall as interest rates rise and companies call employees back to the office – Wall Street Journal
  • Housing Affordability Crisis Increases Odds of Recession. A prolonged sales slump in the $4 trillion industry would ripple through the economy. – Bloomberg  
  • U.S. pending home sales tumble in June as mortgage rate soar – Reuters
  • How Moderna’s Covid Vaccine Boosted Boston’s Real-Estate Market. The company’s hiring spree and soaring stock led to an uptick in luxury home purchases by employees during the pandemic – Wall Street Journal
  • Rising rents mean no shelter for Americans from inflation storm. Double-digit cost boosts for housing are hampering the Fed’s efforts to contain consumer price increases – FT
  • Why your house was so expensive. Material-cost inflation, anti-building rules, NIMBY attitudes, and barriers to innovation have created a housing-affordability crisis – The Atlantic
  • Low-Cost Cities With Strong Economies Remain Attractive as Housing Market Slows. Remote workers willing to relocate help push small, affordable areas to the top of the latest WSJ/Realtor.com index – Wall Street Journal
  • Summer 2022 Wall Street Journal/Realtor.com Emerging Housing Markets Index – Realtor
  • This Housing Market Won’t Be Like Last Time. History Still Has Lessons. – Barron’s
  • Real House Prices and Price-to-Rent Ratio in May – Calculated Risk
  • Why We Need Social Housing. What Medicare for All is for health care, social housing is for shelter. – The American Prospect  

On China:

  • China’s central bank seeks to mobilise $148bn bailout for real estate projects. Heavily indebted sector to receive new loans to complete unfinished apartments owed to angry homebuyers – FT
  • China’s Property Crisis Burns Middle Class Stuck With Huge Loans. Homeowners cut spending, postpone marriage, boycott mortgage. Housing market no longer seen as a sure bet as economy slows – Bloomberg
  • Fresh woe for China’s property sector: mortgage boycotts. Homebuyers’ protests could push risk on to banks – The Economist
  • Xi Wields Carrots and Sticks to Quash China Mortgage Boycotts. There are now at least 319 mortgage boycotts across nation. Granting concessions could encourage copycats, analysts say – Bloomberg
  • Could China Be Headed for a Lehman-Style Crisis? This Property Bust Is Different. – Barron’s
  • See the Full Rankings for WSJ/Realtor.com’s Summer Emerging Housing Markets Index. How metro areas across America stack up in the newly updated summer 2022 rankings – Wall Street Journal

On other countries:  

  • [Canada] ‘Historic’ Correction Grips Canada’s Housing Market, RBC Says. Bank expects housing prices to decrease 12% from previous peak. Home sales are also expected to fall 42% from early 2021 – Bloomberg
  • [Canada] Nowhere to live: Rents in Canada surge as home prices fall – Reuters
  • [Canada] Canada’s Housing Investors Are Heading For the Exits as Rates Rise. Home prices in the once-hot market could slide even further as investors choose to sell. – Bloomberg
  • [Indonesia] Indonesia’s housing market remains sluggish – Global Property Guide
  • [Switzerland] Switzerland’s housing market gradually cooling – Global Property Guide
  • [United Kingdom] Housebuilders criticise plans to boost supply in polluted areas of England. More action is needed to tackle ‘very real issue of polluted rivers’, town planners warn – FT
  • [United Kingdom] UK Says House Prices Are More Unaffordable Than Ever for Buyers. London housing cost 40 times income for lowest paid families. Property in the North East of England was most affordable – Bloomberg
  • [United Kingdom] UK’s Biggest Mortgage Lender Expects Housing Market to Slow. Lloyds thinks house prices will start to decline next year. British borrowing costs to rise along with interest rates – Bloomberg

Posted by at 5:00 AM

Labels: Global Housing Watch


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