The Housing Market and the Recession: This Time Really is Different, But Will it Last?

The housing market’s role as one of the key drivers of the current recovery has been notable and stands in stark contrast to its role as a key driver of the last recession (2008-2009). Its surprising resilience is due in part to the pandemic-induced demand for housing, ultra-low interest rates, and pre-pandemic demographic trends. The longer-run outlook for the housing market will depend on potential for additional fiscal stimulus, recovery in the labor market, and the trajectory of interest rates.