What to expect next in an uncertain economy with Ernie Goss

Aug 4, 2022

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Episode 157:

On today’s episode of “The Building Code,” Zach and Charley are chatting with Ernie Goss, Ph.D., principal investigator, professor of economics and holder of the Jack MacAllister Chair at Creighton University. Ernie is world-renowned for his economic expertise and has published more than 100 research studies focusing primarily on economic forecasting.

Listen to the full episode to hear his insight on when the economy will turn around and where it’s heading next.

Will the pricing of the homes need to adjust to keep the demand of the construction market a bit higher? Will that make building more affordable, too, as a result?

“Well, I'll just tell you what I told my niece. She lives in Atlanta. She said she's been having a difficult time buying a house. And I just told her availability's going to be higher. There will be more choices. Supply will increase. Now, as far as the price, we're going to see it moving sideways, but a significant downturn like we saw in 2008 and 2009, we’re not going to see it this time. And this is my experience from the construction industry. As long as there's lending, contractors will keep building."

What signals are you watching to predict possible changes in the economy?

“The signals that I see, and I'm not always right in looking at signals, but watch what the federal governors or the Federal Reserves say. The governors of the Federal Reserve Open Market Committee, watch them, listen to them, what they're saying, because they're telling you where they're going. And one thing that really affects building that we haven't heard any noise about is the balance sheet of the Federal Reserve.”

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