Can the housing industry revive the U.S. economy?
May 11, 2020
In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses the housing industry’s role in reviving the U.S. economy.
For some background on the story, here’s a brief summary of the article:
The housing industry got a bad reputation the last time the American economy tanked.
Not the houses themselves – most of them are still in place, perhaps painted a time or two since 2008, now being used to home-school children and provide families with shelter from the worst pandemic in more than a century.
It was, specifically, a risky sub-sector of home financing – subprime loans – that got packaged into bonds, stamped with Triple-A ratings and sold at huge profits to investors including pension funds and Wall Street banks. When banks started failing, it pushed the nation’s financial system to the brink.
Now, the housing industry has a chance to redeem its reputation by rescuing the American economy, said Frank Nothaft, chief economist of CoreLogic. Nothaft was the chief economist of Freddie Mac for 28 years, including the time of the housing crash and three years into the recovery.
It’s a familiar role for the nation’s largest asset class: In every recession before the 2008 financial crisis, housing supported GDP as other industries faltered.
Following the main story, HousingWire Digital Producer Alcynna Lloyd covers The Treasury Department’s Financial Crimes Enforcement Network’s investigation into money laundering in the real estate industry, the National Multifamily Housing Council’s latest report that indicates 80% of U.S. renters were able to make a rent payment in May and an announcement from New York Governor Andrew Cuomo to extend the state’s eviction moratorium through August.
The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.
HousingWire articles covered in this episode:
