A recently released study from Harvard University confirmed what has been painfully obvious to the wood flooring industry for the past few years: the U.S. housing industry is mired in the doldrums.
"The state of the nation's housing is sobering," Eric S. Belsky, managing director of the Joint Center for Housing Studies, said in a press release for Harvard's State of the Nation's Housing 2011 report. "Total housing construction over the previous decade now barely exceeds the lowest level of any ten-year period in records dating back to 1974, but vacancies remain elevated because the recession has driven demand down so sharply."
"With millions of owners stuck in homes worth less than they owe on their mortgages, existing home sales remain depressed while new home sales continue near record lows," according to Harvard's overall assessment. "Elevated vacancies and foreclosures continue to place downward pressure on prices. In places where foreclosures are concentrated, property markets are in turmoil."
According to the report, a housing recovery hinges on a return of demand, which is being hampered by the "lingering consequences" of the recession and financial crisis. However, the report's authors point out that the market "could turn quickly as evidenced by the healthy boost in both home sales and prices brought about by the 2010 homebuyer tax credit."
