The US housing market will not come “unstuck” until at least 2026 — and home affordability won’t improve without a recession, a team of Wall Street economists predicted.
The housing market will not come “unstuck” until at least 2026 and home affordability will not improve without a recession“We view the forces that have reduced affordability, created a lock-in effect for homeowners, and limited housing activity will remain in place through our forecast horizon,” they added.
Increased rates and a “lock-in effect” — or lack of home transactions — will likely continue to fuel a decline in home sales, blocking young buyers from the market, Bank of America said.
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