After seeing new home sales fall 6.1% in February from a year before— and existing home sales tumbling 7.1% from the month before—it’s time to ask, did the housing crisis really end?
While it’s true home values remain strong, the problem is homebuilders are not ramping up production to match demand—especially when it comes to affordable housing.
There are different ideas why, and Jason Furman, chairman of the Council of Economic Advisors, says the housing market is being held back by supply constraints, such as land use regulations, Fortune reports.
On top of that, it’s really hard to get a mortgage, even for qualified borrowers. And Millennials are waiting longer to marry and buy homes.
All these factors combine to keep the US housing market weak while holding back the economy from higher growth. [Fortune]
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