What Goes Up...
Column Published in syndication September 01, 2021

Housing prices are up. Way up! The robust market reflects a variety of factors, including population growth, job opportunities, and interest rates. During the pandemic, demand increased as people looked to upsize to allow more room for at-home work and/or school. Remote work also allowed many households to relocate, while stimulus funds helped many with down payments. At the same time, the pandemic slowed construction due to production shutdowns, logistics bottlenecks, and resulting shortages (and price increases) of some building materials – and a tight labor market didn't help. In other words, in our highly complex modern economy, the basics of supply and demand are alive and well.

Mortgage Milestone
Column Published in syndication August 14, 2019

After more than a decade, the amount of household debt (including mortgages) has surpassed pre-Great Recession levels. Sometimes, an upswing in debt of certain types can be a negative signal, such as rising credit card debt in an economic downturn as people try to deal with financial setbacks such as job losses. However, rising debt can also reflect economic strength as increasing numbers of households are willing and able to purchase big-ticket items such as homes and cars.

Marking a Milestone
Column Published in syndication June 14, 2017

We recently passed a notable milestone in the long process of recovering from the Great Recession: household debt levels have surpassed the peak reached during the recession in 2008. In many ways, this rise in consumer debt is a good sign in that it indicates Americans are feeling optimistic enough to take on additional obligations. Moreover, housing markets and credit conditions have normalized to the point where mortgages are trending upward along with loan quality. On the other hand, it can be viewed in a somewhat more negative light in some respects, particularly given that one category responsible for significant growth is student debt which may not be providing adequate returns in terms of enhanced future earning capacity or other educational goals. Let's take a brief look at some of the salient points.

Boomerang Economics
Column Published in syndication June 15, 2016

For the first time since the late-1800s, there are more young adult Americans living with their parents than with a spouse or partner. In fact, about one of every three people in the 18- to 34-year old age group is living with parents. The tendency to move out of the family home for a while but then come back has led to the use of the phrase "boomerang generation" to describe the phenomenon. The social and economic implications are significant.