- Residential real estate appears to be rebounding, with implications for the Fed ‘s inflation battle
- While lower rents will eventually be reflected in inflation data, home prices themselves are levelling out
- Pandemic-related surge of homebuilding and renovation has moderated, but important to understand long-term impact on family formation, housing demand
Bowman is speaking at a Fed Listens event in Boston with Susan Collins. I don’t think she’s trying to send a message about interest rates with this comment but it’s an important area to think about for Fed officials. I believe US housing has a long way to run and will make it difficult for the Fed to get inflation under control; there’s so much pent up demand.