Strong housing demand, persistently high existing home prices allow US homebuilders to take market share with incentives like mortgage rate buy-downs. Single-family home starts to grow 3% this year.
Home price growth has stalled in most major economies. globally. However, despite rising wages, housing affordability is weakening after record or near-record house price appreciation in recent years.
Cost-of-living and interest rate hikes will remain significant challenges to European mortgage borrowers, and slowing homebuilding activity will keep housing supply tight in urban areas.
Residential real estate companies' credit quality risks further erosion as debt becomes more expensive and deleveraging through disposals remains difficult.
Housing affordability will improve in Asia-Pacific this year because GDP per capita will outpace home prices, though it will remain a stretch in some countries amid elevated interest rates.
Strapped individuals and families will cut spending on new homes and weakening mortgage quality will spur risk for the financial sector.