America Owes Housing

Without housing's strong performance over the past year, the economy and most people's financial situation would be much worse than they are.

While stock values plummeted, new home sales and starts were at or near record highs. And while stock portfolios and retirement funds tanked, house values increased steadily, often dramatically.

Spurred by the lowest mortgage interest rates since the 1960s, housing is expected to continue to bolster the economy into 2003, although the path to recovery might be rocky because of uncertainty over war, stock market volatility and weak consumer and business confidence, according to economists at the NAHB's recent semiannual construction forecast conference.

They were unanimous that no signs of a house price bubble are on the horizon. They agreed that local markets could see slippage but said no big crash is likely.

The bottom line is that without housing's support and moderating influence, the economy would have fared much worse and the effects of the downturn would be much more severe. America and its homeowners owe housing a deep debt of gratitude.