US Housing Market Shifts – Pandemic to 2022
Phil Lee
VP Marketing, Nuro Technologies
The US housing market was undergoing major growth, driven by the pandemic enforced “work/study at home”. Families felt the pressure for separate rooms for parents to work from home and children to study from home. This changed work/study requirement drove many households to look for newer and larger homes to get the space to support multiple home offices.
The demand in the new housing market exceeded available inventory and builders were selling houses as soon as projects were launched, often sight unseen. This was all good while it lasted and then the Fed started aggressively increasing the interest rates to fight inflation.
With increased interest rates and a slowing of the economy, the demand in the housing market has significantly cooled due to higher mortgage payments and nervousness in the job market. Large layoffs in the tech sector have reinforced job insecurity among many prospective new homeowners.
Hopefully in 2023, once inflation has normalized and the economy stabilizes, we hope the Fed will reduce rates and the housing market will recover. Many tech companies have found that work from home is realistic and reduces their operational costs. Demand for larger homes with more rooms will remain, as the new hybrid work culture continues beyond the pandemic.
With increased interest rates and a slowing of the economy, the demand in the housing market has significantly cooled due to higher mortgage payments and nervousness in the job market. Large layoffs in the tech sector have reinforced job insecurity among many prospective new homeowners.
Hopefully in 2023, once inflation has normalized and the economy stabilizes, we hope the Fed will reduce rates and the housing market will recover. Many tech companies have found that work from home is realistic and reduces their operational costs. Demand for larger homes with more rooms will remain, as the new hybrid work culture continues beyond the pandemic.
