The most recently published GDP numbers reveal that the U.S. is growing at a faster-than-first-reported 0.8% in the first quarter, with residential investment in things like home builidng and renovation rising at an annual pace greater than 17%. Quartz staffer Matt Phillips takes a look at this GDP increase which confirms other trends such the increase of new home sales and an increase in median home prices.
Many categories are rising to levels not seen since the pre-crisis boom which is enough to give cause for concern to some but Phillips says fear not:
But that was then. Now, mortgage standards are high, wages are starting to pick up steam, and debt burdens remain quite manageable. In other words, this trend has room to run. Underestimate the power of the US housing market at your own risk.