Unexpectedly Intriguing!
10 January 2023

The U.S. new home market enters 2023 in distress. Political Calculations' initial estimate of the market capitalization of new homes for November 2022, the data for which was released just before the holidays, is $25.35 billion. This time-shifted, trailing-year average is 15.8% below its December 2020 peak in nominal terms and is 25.5% below its inflation-adjusted peak.

Trailing Twelve Month Average New Home Sales Market Capitalization in the United States, December 2020 - November 2022

The annotations in this chart emphasize the role and timing of inflation and rising interest rates in contributing to the shrinking market for new homes. That shrinking market contributes to economic headwinds in the U.S., where a healthy new home market can account for 3-5% of the nation's GDP. For longer term context, here are links to the latest updates to our charts tracking the market cap for new homes and its component price and sales data since January 1976.

We'll take a separate look at the impact of inflation and rising interest rates for new homes on their affordability in the very near future.

References

U.S. Census Bureau. Monthly New Residential Sales, November 2022. [PDF Document]. Accessed 23 December 2022. 

Labels:

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations

Thanks in advance!

Recent Posts

Indices, Futures, and Bonds

Closing values for previous trading day.

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button

JavaScript

The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Archives
Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.