The best and worst things to come in the U.S. housing market, according to Wells Fargo Chief Economist

In the most recent episode of our podcast series, John expanded on the fundamental challenges for the U.S. housing market going forward. 

John also provided a window into which regions he feels will perform better or worse in the next year or two, and why.  These included larger cities and centers of government spending. He also spoke on why he feels non-residential construction will be strong compared with residential building:

“We continue to become more of a global trading nation every day, every year. What I think we will see is pretty strong growth in non-residential construction with respect to warehousing, shipping, industrial space in some of the port areas such as in Long Beach or Los Angeles or Jacksonville Florida at the same time that the housing markets in those regions are still be relatively weak or take two or three years to recover.  So I think it’s an interesting contrast.”

Moving from housing into some of the economic fundamentals, John discussed how inflation could have a larger than expected impact, even at relatively low rates, as well as how major policy changes can slow down or speed up overall recovery.

Listen to our podcast now to hear the entire conversation. Subscribe to our podcast in iTunes to gain access to each new episode as it is available.