1. Housing in a Growing Economy
Presented by
Prof. Laura Kalambokidis
To the Governor’s Task Force on Housing
January 12, 2018

2. Slow-growth U.S. expansion expected to persist
Average for 20-years prior to Great Recession = 3.1%
Source: U.S. Bureau of Economic Analysis (BEA), IHS Markit (IHS)

3. State unemployment rate remains below the U.S.
= U.S. Recession
8+ Years

4. Low unemployment and high demand for workers tighten the labor market
+1.5%
+1.5%

5. Housing challenges co-exist with a strong economy
Home prices upaffordability down But: Home prices uphousehold wealth upconsumer spending upeconomy grows Rents upaffordability down But: Rents upbusiness profits upeconomy grows Wages upconstruction costs up But: Wages upconsumer spending upeconomy grows