A mixed outlook for the housing market

Amy Scott Mar 18, 2014
HTML EMBED:
COPY

A mixed outlook for the housing market

Amy Scott Mar 18, 2014
HTML EMBED:
COPY

New home construction took another hit last month, according to the latest figures from the Commerce Department. Housing starts slipped for a third straight month, though applications for building permits rose more than 7 percent.

In parts of the country relentless winter storms have slowed down homebuilding, but the fragile housing recovery is up against more than bad weather.

In a typical recovery, young people would be the first time buyers flocking to model homes. But analysts say Millennials have been slower to move out of their parents’ homes and form their own households – held back by a tough job market and soaring student loan debt. For people who do want to buy, higher mortgage rates and rising prices have also made housing less affordable.

The National Association of Home Builders says members are pessimistic about the next six months, as they face higher materials costs, and shortages of skilled labor and ready-to-build land.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.