Economist Elliot Eisenberg spoke at The Greater Houston Builders Association’s mid-year economic forecast luncheon on June 9, addressing the skyrocketing demand for housing statewide, including the Greater Houston area.
A mixture of increased savings from stimulus checks and less spending during the pandemic has allowed residents to make down payments on homes, Eisenberg said. People moving from other states at rising rates is also stressing the housing market that already had few existing homes to sell.
The country holds about $2.5 trillion in excess savings during the pandemic, Eisenberg said. People are using these pent-up savings to buy homes.
“Especially in a place like Houston or Texas in general where housing is traditionally quite inexpensive relatively,” Eisenberg said. “This money goes a long way towards a down payment. So the savings is driving consumption.”
The inventory of homes before the boom was already low. Builders produced fewer homes in response to the housing crash in 2008, Eisenberg said.