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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. ┬áThe 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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