Concerns are rising that the nation’s year-long revival in residential housing might be facing an uncertain future. The latest publication to tackle the issue was none other than the venerable Economist, which had this to say:
What effect will this slowdown will have on builders? Previous busts have taught them to control the inventory of new properties coming to the market. If they react abruptly to falling sales by building less, the housing market may be “on the verge of a significant correction”, argues Ian Shepherdson of Pantheon Macroeconomics. Although residential construction is only 3% of GDP, in each of the past five quarters it has contributed around a quarter of America’s economic growth.