According to the Wall Street Journal, economists differ on how falling oil prices affect the housing industry.
Some economists believe that housing starts will pick up, as falling oil prices can indirectly affect how delayed first-time buyers can finally purchase a home. Other economists expect a decline in construction, especially in oil-dependent markets such as Texas. This will cause a disproportionate impact on home builders because Texas makes up a sizeable portion of their business.
Advertisement
Related Stories
Economics
Housing Share of GDP in Q1 2024 Rises Above 16%
The increase marks the first time GDP has surpassed 16% since 2022
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady