Housing Market Rebound Fundamentally Different

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Our initial blog post on Friday made the argument that the housing market rebound was driven primarily by investors buying up foreclosed properties. As a result, we should not expect it to fuel household spending as we saw before.

Two articles out today make arguments that are closely related: home building is shifting toward rental apartments and surging home prices are pricing out first-time buyers.

New Home Building Is Shifting to Apartments, by Conor Dougherty (@ConorDougherty)

Surging Home Prices Are a Double-Edged Sword, by Nick Timiraos (@NickTimiraos)

Both of these excellent reporters are must follows if you want to understand developments in the housing market.

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