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Chart Of The Day

High Debt and Low Incomes = Low Housing Demand

Here’s an interesting piece of research from the NY Fed that explains why the demand for housing remains relatively low – potential buyers just have too much debt and not enough income:

housing1

The recovery continues, but it remains lumpy due to the high levels of debt and the lack of strong income growth.  The Balance Sheet Recession is ending, but it’s still having a lasting impact on the US economy….

5 comments
  1. VerySeriousSam

    “I already own a house” or maybe
    “I already own a house, which is fully paid”
    ist missing from the answers, no?

  2. jswede

    with all due respect and then some, I thought you declared the balance sheet recession over late 2013? At the time, I vehemently disagreed. Has something changed in your thinking?

  3. jswede

    balance sheet recession = deleveraging ?

    we define it differently. the “level of debt” being “problematic” is at the core of my definition of bsr.

    thanks for response.

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