JP Morgan US Housing Market Report: Where is the Market Headed?

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Members of Generation Z might struggle to remember a time the US housing market prices were doing anything other than rising exponentially.

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The financial crisis of 2007 was one of them. Some people are wondering if the US housing market is going through something similar now — but is it a fair comparison?

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The US Housing Market Throughout History

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House prices in the US rose 17.1% between December 2020 and December 2021. It’s a terrifying figure for anyone currently saving for a house, and it’s also a rate that far surpassed inflation.

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With increases in average wages way behind, it’s no wonder that many people have concerns about the growing affordability crisis.

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JP Morgan: Could 2022 be the Next 2008?

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Look no further to see suggestions that 2022 could be the beginning of the next big financial crisis. The stock market isn’t holding up well, with the S&P seemingly falling further every day.

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We need to look at the current state of a few other risk factors; J.P Morgan focused on debt levels and supply.

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Debt Growth

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Although prices are increasing quickly, debt growth isn’t taking place at quite the same rate as we saw between 2003 and 2006.

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During the recovery period after the 2007 crisis, most households have been paying off their debt, meaning they were in relatively good financial situations when the pandemic came around.

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