Cyclical Downturn in Housing
Macroeconomics and Monetary Economics
Urban, Rural, Regional, Real Estate, and Transportation Economics
Housing construction is in a sharp decline. In the first quarter of this year, starts were down almost a third from the rate of mid-1979, adjusted for usual seasonal patterns. The decline continued in the second quarter. With very high mortgage rates as a major factor pushing the cost of ownership up much faster than income, many potential buyers have been forced to postpone or cancel intended purchases.
