Another Housing Bubble Might Be Coming, But It’ll Be Nothing Like 2008
The demand for housing in the US continues to outpace supply. In fact, according to Zillow, housing inventory won't reach pre-pandemic levels again until 2024 at the earliest. That means bidding wars will likely remain the name of the game, and prices will continue to rise. Over the past two years, year-over-year home values have risen a total of 32%—between January 2021 and January 2022 alone, annual growth accelerated by 19.2%. Interestingly, that’s well above the peak annual rate of 14.5% posted in the lead-up to the 2008 housing bubble, which raises a critical question: are we in the middle of a housing bubble?