— is due to Goldman's outlook for housing supply levels. Supply remains tight despite new homes continuing to come onto the market. A worst-case scenario supply shock still wouldn't rival that seen during the mid-2000s housing crisis, the bank said in a note last week. But under the surface of the broader market, things are more complicated. In certain areas of the country, supply levels are rising faster than in others.
In four cities in particular, supply levels are above pre-pandemic levels, the bank said, which will result in greater price declines than the national average. They include: Phoenix, Arizona; San Francisco, California; Seattle, Washington; and Austin, Texas. "While overall levels of housing inventory remain tighter than pre-pandemic levels, some vulnerable metropolitan areas have seen supply increase rapidly," said strategists Lotfi Karoui, Vinay Viswanathan, and Ronnie Walker.
"We think the risk of a potential supply surplus is elevated in the multi-family space. Almost 40% of total housing starts over the past 6 months have been for multi-family units, the largest share in 39 years. While multi-family developments do take longer to execute, this could challenge the medium- to long-term outlook for rental properties."Subscribe to push notifications
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Goldman Sachs boss David Solomon warns the inflation fight is far from overGoldman Sachs boss David Solomon warns the fight against inflation is nowhere near over – because the US jobs market still looks so strong “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” It has nothing to do with the jobs market. For gods sakes. Lmao smfh only 'Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” It has nothing to do with the jobs market. For gods sakes. Lmao smfh only DavidSolomon
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