Key Index Shows Housing Recession

Objectivity 4.8 | Credibility 4.8 | Relevance 4.9

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index, an important indicator of the single-family housing market, has fallen for the eighth consecutive month. The indicator dropped from 80 in August 2021 to 49 in August 2022; almost a 40% drop. Anything below 50 is considered negative. “Tighter monetary policy from the Federal Reserve and persistently elevated construction costs have brought on a housing recession,” NAHB chief economist Robert Dietz said.