The Peter Zeihan Podcast Series What's the US Housing Market Doing? || Peter Zeihan
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Feb 5, 2025 Dive into the evolving US housing market, where post-COVID dynamics have led to fewer new builds and soaring prices. Discover how consumer demand has shifted towards quality living spaces. The podcast also unpacks the interplay of political decisions and demographic shifts on mortgage rates, emphasizing the crucial role of baby boomers in shaping housing inventory. Stay tuned for insights that combine current events with in-depth analysis!
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Housing Market Shift
- The US housing market has shifted from low supply and high demand to higher supply and lower demand.
- This change is due to increased housing stock and decreased sales, impacting affordability.
Political & Economic Factors
- The US housing market is influenced by both political and economic factors. Politically, government spending affects mortgage rates through the 10-year treasury note.
- Increased government spending leads to higher borrowing costs for everyone, including higher mortgage rates.
Demographics and Credit
- Demographics play a key role in credit markets, particularly housing. People aged 20-45 are net borrowers, while those aged 45-65 are net contributors.
- Baby Boomers' life stages impacted credit costs; high demand when young, lower costs as they matured and saved.