Episode 3: Is the U.S. Housing Market Broken?

The current state of the U.S. housing market can be traced back to the Global Financial Crisis (GFC). The ensuing retreat of builders and lenders resulted in housing starts trending below a pre-GFC average that had persisted for several decades — in an America with a much smaller population. Then the pandemic hit, which stimulated substantial demand as Americans worked and schooled from home and moved to different parts of the country. On the supply side, a shortage of building products and labor put the brakes on construction. Fast forward to 2024, and current benchmark mortgage rates mean that many homeowners locked in at lower rates are not keen to sell. All of this adds up to a housing market where affordability is near all-time lows. But is the U.S. housing market actually broken? Join Citi’s Rob Rowe, Head of the Global Strategy and Macro Group and U.S. Regional Director of Research, and Anthony Pettinari, U.S. Homebuilding and Building Products Analyst, as they tackle this critical question, not only from an economic standpoint but also from the perspective of demographics, geography, and even the tail risks around insurance rates amid climate change. This podcast contains thematic content and is not intended to be investment research. Nor does it constitute financial, economic, legal, tax or accounting advice. This podcast is provided for information purposes only and does not constitute an offer or solicitation to purchase or sell any financial instruments. The contents of this podcast are not based on your individual circumstances and should not be relied upon as an assessment of suitability for you of a particular product, security, or transaction. The information in this podcast is based on generally available information and, although obtained from sources believed by Citi to be reliable, its accuracy and completeness are not guaranteed. Past performance is not a guarantee or indication of future results. This podcast may not be copied or distributed, in whole or in part, without the express written consent of Citi. © 2024 Citigroup Global Markets Inc. Member SIPC. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.