(Featuring Robert Sun, Leader of Product Development and Corporate Strategy, GTIS Partners)
The COVID-19 pandemic highlighted the advantages of single-family living. It appears to have accelerated an existing trend of migration to less dense, more affordable areas.
https://www.afire.org/podcast/goldilockscast/
The US housing market began 2020 with favorable demographics-driven housing demand, balanced new supply, healthy home appreciation, and responsible mortgage lending. However, the unexpected COVID-19 pandemic led to the worst economic disruption in history, with more than 22 million lost jobs between February and April 2020.
In response, the US government approved nearly US$3 trillion in fiscal stimulus while the Federal Reserve cut interest rates to zero and rolled out an unprecedented scale of support to restart the financial system. Combined, government responses to the COVID-19 crisis helped to stabilize the economy and the housing market has emerged as a bright spot in the recovery.
However, the resilience of the housing market can be explained by structural factors that persisted before and during the economic crisis. Robert Sun, leader of Product Development and Corporate Strategy at GTIS Partners—a leading real assets private equity firm in the Americas, investing in the US and Brazil—discusses these structural factors, and what's next for housing in the US.