US Housing Market Update Is remote work responsible for the house price boom? By increasing the demand for accommodation and boosting rents, the shift to remote work will have put some upward pressure on house prices. But while rents have seen an above-trend increase since the... 1st June 2022 · 3 mins read
US Housing Market Update NYC apartment rental growth will cool rapidly Rental growth in NYC reached 22% y/y in Q1 2022, one of the fastest rates in the country. But we expect growth to cool rapidly from here and underperform other cities. The past surge in rents largely... 25th May 2022 · 3 mins read
US Housing Market Update Mortgage debt service ratio to remain low The surge in mortgage rates has led to a sharp deterioration in home affordability. But that doesn’t mean the mortgage debt service ratio, the share of disposable income spent on mortgage payments... 19th May 2022 · 3 mins read
US Housing Market Update Rise in rates to bring more vacant homes to market Homebuyers looking for more space were contending with low numbers of larger homes for sale in the first quarter, not helped by an apparent rise in investor demand for bigger properties. But rising... 5th May 2022 · 3 mins read
US Housing Market Update Can cash buyers keep house prices booming? Rising mortgage interest rates and tight credit conditions pushed the cash buyer share of existing home sales to a six-year high in March. But while the cash buyer share and house price growth are... 21st April 2022 · 3 mins read
US Housing Market Update Desperate buyers give home sales and prices a boost The surge in mortgage rates means home buyers with a mortgage preapproval from late January will see a rise in mortgage payments of 15% if they can’t find a home before their approval expires at the... 13th April 2022 · 3 mins read
US Housing Market Update Will mortgage spreads keep rising? The jump in the spread between mortgage rates and the 10-year Treasury yield primarily reflects a rise in the credit risk premium as investors react to a slowing economy, surging inflation, and the... 23rd March 2022 · 3 mins read
US Housing Market Update Are housing valuations reaching dangerous highs? House price-to-earnings ratios are approaching the peak hit just before the global financial crisis, and another year of strong house price growth would send them above that level. But while mortgage... 1st March 2022 · 3 mins read
US Housing Market Update Shift to South helps homes get bigger Working from home has increased the demand for larger properties, and in response the median size of new homes started at the end of last year was the largest since the start of 2019. Supporting that... 18th February 2022 · 3 mins read
US Housing Market Update Do not conflate real assets with inflation hedges We believe the link between real estate cashflows and inflation to be overplayed, a view that is backed up by the evidence of the last 44 years. But there are exceptions. One of which is low vacancy... 10th February 2022 · 4 mins read
US Housing Market Update Ballooning mortgage size not a risk to the market The average home purchase mortgage size has ballooned over the past couple of years, but a concurrent rise in down payments will protect lenders from all but the most severe of house price shocks... 10th February 2022 · 3 mins read
US Housing Household formation stalls as costs mount After seeing strong gains over most of 2021, household formation stalled in the final quarter. A lack of homes for sale and rent, and the soaring cost of both tenures, is constraining household... 3rd February 2022 · 3 mins read
US Housing Market Update Key US Housing Market Calls for 2022 A rise in mortgage rates to 4.0% by end-2022, coupled with the 25% rise in house prices seen since mid-2020, will boost mortgage payments as a share of earnings to their highest since mid-2008. That... 19th January 2022 · 3 mins read
US Housing Market Update Material shortages hit housing completions Shortages of materials and labour over the past year have not stopped builders from starting a lot more single-family homes. But they do appear to have prevented them from finishing them. That implies... 6th January 2022 · 3 mins read
US Housing Market Update Will major coastal city rents continue to get cheaper? The pandemic turbo-charged a move away from major coastal cities, and that drop in demand led to a sharp fall in their rents relative to the national average. But with those moves now made and cities... 9th December 2021 · 3 mins read
US Housing Market Update Why are pending and existing home sales diverging? An increase in the quality of mortgage borrowers, and record low inventory, are boosting the mortgage closing rate and leading to an increase in the share of pending home sales converted into existing... 29th November 2021 · 3 mins read
