Recession

Don't Blame Looming Recession on Slump in Residential Real Estate

The threat of a looming recession is not the fault of a sluggish real estate market, despite conflation by many economists, The New York Times reports. Though the United States has experienced 11 recessions since World War II, only two were precipitated by housing market decline. The sector often receives the brunt of the blame as it is more volatile than others, however, residential real estate accounts for only about 3 percent of economic output during recessions. Though the buying slump is a reality, this is likely a byproduct more than a driving factor — owing much to rising prices of existing homes in most markets, with the construction of new dwellings grinding to a screeching halt.

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