CRS Insight – The U.S. “Housing Recession” August 21, 2023: “Economists often look to the housing market as an indicator of the health of the economy. As the COVID- 19 pandemic accelerated, the housing market was relatively strong, characterized by robust demand, rising prices, and increased construction. Since the latter half of 2021, spending on residential construction has faltered, leading some to believe that the United States is or was in a “housing recession.” Some have speculated that lower spending in the housing sector is a sign that overall spending in the economy will decrease and that a housing recession will lead to an actual recession. This Insight discusses the concept of a housing recession, reviews housing market trends, and considers the extent to which housing market conditions may affect the broader economy.”