January 30, 2024 | Driving It Home with ABoR's Housing Economist

In this episode of Driving It Home, Dr. Clare Losey and ABoR & Unlock MLS CMO Kelea Youngblood discuss the state of inflation and interest rates. Dr. Losey explains that while inflation has slowed since peaking in 2022, the Federal Reserve is likely to maintain current rates in the near term. There might be a rate cut as soon as March or more likely in May, depending on ongoing inflation data and labor market performance. The aim is to be cautious and prevent a resurgence of inflation.   The conversation shifts to housing affordability, particularly for renters in Texas. Dr. Losey reflects on a report by Harvard's Joint Center for Housing Studies which indicates that over half of Texas renters are cost-burdened, spending more than 30% of their income on rent and utilities. This statistic highlights the difficulties lower-income households face in transitioning to homeownership, given the barriers such as saving for down payments and unfavorable debt-to-income ratios.   Lastly, they cover housing market statistics, with a focus on comparing year-over-year data for January. Dr. Losey notes that sales activity is similar to the previous year, with a slight increase in inventory. Leasing, however, has seen a significant rise in active listings, attributed to the high mortgage rate environment which has potential buyers waiting on the sidelines. The episode concludes with a reminder about the upcoming ABoR & Unlock Annual Meeting tomorrow, January 31.    *Links mentioned in this episode:* January 31 Annual Meeting https://www.abor.com/event/annual-meeting-virtual-attendance-3 December 2023 Housing Market Report https://www.abor.com/marketstatistics Buy Vs. Rent Index https://www.abor.com/document/buy-vs-rent-index Harvard's Joint Center for Housing Studies https://www.jchs.harvard.edu/americas-rental-housing-2024   YouTube: https://www.youtube.com/@AustinBoardofREALTORS/podcasts Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732   *Don't forget* to access your *FREE* Austin Business Journal subscription! Tap into this benefit exclusive for ABoR members and use it as a resource for lead generation and market insights.   Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2024/01/DIH-1-30-24.pdfConnect with us on socials: https://www.abor.com/socials   Connect with Dr. Clare Losey on LinkedIn: https://www.linkedin.com/in/clare-losey   Have feedback? Email us at [email protected].