United States of America

Is the US housing market boom sustainable? Why this time is different

Residential home prices in the US have spiked on the back of falling interest rates and other pandemic-related market disruptions.

The key takeaways of this edition are:

  • US house prices are up by more than 10% year-on-year.
  • The housing sector is driving the economy and will help anchor the recovery due to falling rates and changes in home-buying preferences.
  • The higher-credit quality of mortgagers and more fixed-rate loans suggest limited systemic risk compared to the 2000s.
  • Today's housing boom is characterized by less speculative buying and oversupply, reducing the risk of collapse.
  • Demand for commercial real estate is gearing towards industrial and logistic-related properties, away from retail and office buildings.

Economic Insights, direct to your inbox

Our Economic Insights series looks at current economic topics and their implications for the re/insurance industry.

Subscribe to receive each edition of Economic Insights.


interestrates pandemics economicpolicy economicinsights northamerica corona covid19

Economic Insights Is the US housing market sustainable? Why this time is different


See also former Economic Insights