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  • Alex Pettee, CFA

The Housing Shortage Is Getting Worse

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  • On a jam-packed week of earnings and economic data, the S&P 500 and Nasdaq each climbed to new record highs ahead of next week’s all-important Fed rate decision.

  • For the second straight quarter, GDP growth exceeded estimates as strong consumer spending partially offset a dip in business spending, exports, and fixed investment.

  • The housing shortage is getting worse. Residential fixed investment was a drag on GDP growth for the sixth straight quarter even as household formations have accelerated.

  • The homeowner and rental vacancy rates fell to nearly 40-year lows last quarter as strong demographic trends and a robust job market continue to put upward pressure on housing costs.

  • New and existing home sales data was disappointing, but forward-looking metrics – including strong earnings and commentary from the homebuilders – suggests a strong second half of 2019 for housing.

For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Homebuilders, Apartments, Student Housing, Single-Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Apartments, Shopping Centers, Hotels, Office, Storage, Timber, and Real Estate Crowdfunding.

Disclosure: It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. All commentary published by Hoya Capital Real Estate is available free of charge and is for informational purposes only and is not intended as investment advice. Data quoted represents past performance, which is no guarantee of future results. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy.

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Hoya Capital Research & Index Innovations is an affiliated index provider and research firm that builds custom indexes tracking U.S. commercial and residential real estate sectors, including indexes tracked by exchange-traded funds (ETFs). 

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