The Role of Housing in the Longest Economic Expansion is a special report examining the role and performance of the housing sector during the ongoing 121 months of consecutive economic expansion in the United States, the longest period on record.
Here are the Key Findings on the Economic Influence of Housing:
The number of homes with negative equity has decreased
Total percent of homes underwater went from 25.9% in the first quarter of 2010 to 4.1% in the first quarter of 2019.
Total home equity hits new record
At the end of the first quarter of 2019, total home equity reached $15.8 trillion, up from $6.1 trillion in the first quarter of 2009. Between the first quarter of 2010 and the first quarter of 2019, the average equity per borrower increased from nearly $75,000 to approximately $171,000.
Since 2010, the housing flip rate has increased significantly
In the first quarter of 2018, the number of properties bought and sold again within a two-year period reached its highest point at 11.4%.
Strong recovery for home prices and rents
Since June 2009, home prices and rents have continued to grow. Through May 2019, home prices increased a cumulative 50% and single-family rents increased 33% in the United States.
$13,600 average gain in equity per borrower in 2018.
— “Home prices have increased steadily since 2011, creating record amounts of home equity and putting homeowners in a good position to weather future downturns.” Molly Boesel, Principal Economist
— “We expect the housing market to enter a normalcy phase over the next 24 months. With prices neither rising too fast nor too slow, and with a growing stream of young households looking to buy homes over the next two decades, the long-term view looks healthy.” Ralph McLaughlin, Deputy Chief Economist
**Excerpts from Special Report by CoreLogic via Economic Focus**