Here’s where the housing market is headed on its way into 2027

How will improving affordability, the ongoing lock-in effect, mortgage rate pressure, and the continued cost advantage of renting over buying shape the housing market outlook for the foreseeable future?During a Wednesday morning session at the Pacific Coast Builders Conference (PCBC) in San Diego this week, Chris Thornberg, Founding Partner at Beacon Economics, and Danielle Hale, Chief Economist at Realtor.com, gave their best shot at answering those questions. The two economists painted an overall picture of a housing market squeezed between incremental improvement and persistent supply constraints, especially for would-be homebuyers in the lower-priced entry-level segment. Buyers are beginning to benefit from improving affordability and rising incomes, but elevated mortgage rates, limited inventory and the ongoing war in Iran remain causes for both hesitancy and financial helplessness. The broader economic outlook Chris Thornberg’s economic outlook centers on the perspective that conditions in the U.S. economy face a widening gap between public perception and economic reality. He argue that Americans have an overwhelmingly pessimistic view of the economy, due to constant headline...