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CBO Background Paper: The Outlook for Housing Starts, 2009 to 2012 November 2008

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Background Paper: The Outlook for Housing Starts, 2009 to 2012, November 2008

  • “This background paper examines the various factors that have determined the number of housing starts in the United States in the past and will continue to determine it in the future. Those factors include the underlying demand for new housing units, especially
    the role of demographics; cyclical and financial conditions, such as unemployment rates and lending standards; and the number of excess vacant units. CBO expects that housing starts will fall far enough below underlying demand for a long enough period to eliminate the current glut of vacant units and any temporary shortfall of demand due to adverse cyclical and financial conditions; this paper presents
    three alternative scenarios that could achieve that outcome.”

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