First American’s Odeta Kushi on how labor, AI and migration will impact the housing market

Odeta Kushi, deputy chief economist at First American, says that the 2027 housing market is likely to be constrained due to higher mortgage rates, but factors like household income growth and cooler home price appreciation will present opportunities for housing professionals and their clients.Kushi, who’s been with First American for more than a decade, sat down with HousingWire at last week’s Mortgage Bankers Association Annual Conference & Expo in Chicago. She discussed a range of topics tied to housing affordability and supply, the labor market, artificial intelligence and aging in place.Editor’s note: This interview has been edited for length and clarity. Neil Pierson: Let’s start by talking about housing affordability issues. First American’s most recent Real House Price Index showed that the U.S. is about 5% less affordable than the same point last year. In the face of higher mortgage rates and other factors, what do you expect to happen in the months ahead? Odeta Kushi: I would expect some further deterioration now that rates have climbed above 7% and have stayed there. I would expect the mortgage rate piece to drag affordability lower, but I would say the upside is we’r...