Demand for housing is building up, because the population keeps growing, but people have not had the opportunity to get into a home. Macro implications:

Friday October 21:

Demand for housing is building up, because the population keeps growing, but people have not had the opportunity to get into a home. Macro implications:

“With would-be buyers still sitting on the sidelines and construction interests more firmly focused on the conversion of multifamily units, rental properties have bright prospects. The troubled state of the U.S. consumer will contribute to this growth,” Putnam Investments analysts say.

They expect the rental sector to lead the next upward cycle in housing. In turn, they expect the U.S. economy to be stabilized when this happens. See external link to Putnam paper.

“When housing makes the turn from headwind to tailwind for U.S. economic growth, the uncertainty of the ongoing recovery could finally begin to clear,” the Putnam analysts argue.