Bloomberg Surveillance · Tuesday, July 14, 2026
The weakness in the housing market is primarily attributed to a slowdown in immigration and a consequent collapse in household formation, rather than solely high interest rates. Reduced job creation has led to weaker housing demand compared to periods with higher labor force growth.
“Well, I think the housing sector is the weakest part of the economy. But the question is why is housing week Is it weak because interest rates are too high, or is it weak because we're not having any more immigration into the United States and so the growth rate of the household formation has collapsed, and so with that, the demand for housing is much weaker than it was in the past.”
“And so I think I don't think the housing sector is weak so much because rates are too high. I think it's weak because we're not seeing a lot of growth in the labor force.”