Economic Insight From Robert Dietz
Robert Dietz, the Chief Economist for the National Association of Home Builders
offers insight into the economic impacts of the COVID-19 pandemic and the role housing will play in helping us recover, specifically markets like Northern Colorado.
"The next two quarters will be extremely challenging for the economy as a whole. The second quarter of 2020 will feature a historic jump in unemployment and a sharp recession for much of the economy.
"However, the economy will rebound as virus mitigation takes hold and the economy, slowly, reopens. During this stage, housing will play a particularly important role, as housing is typically a sector that leads the economy during a recovery, given its ability to benefit from lower interest rates and its widespread impact on local job creation and tax revenue.
"We expect those parts of the country that have seen strong population growth to lead the economy during this rebound stage. For example, Ft. Collins saw a population gain of almost 2% in 2019, which is more than triple the pace of the nation as a whole. Regions with strong population growth and a history of underbuilding will lead the economy given the essential character of the fundamental need for home construction and remodeling."
- Robert Dietz
More on Robert Dietz: Robert Dietz, Ph.D., is a chief economist and senior vice president for economics and housing policy for NAHB. His responsibilities include housing market analysis, economic forecasting and industry surveys, and housing policy research. His published research includes the private and social benefits of homeownership, federal tax expenditure estimation, and other housing and tax issues in the Journal of Urban Economics, Journal of Housing Research, the National Tax Journal and the NBER Working Paper series. He has testified before the House Ways and Means Committee, the Senate Finance Committee and the Senate Banking Subcommittee on Economic Policy on housing and economic issues. He is a native of Dayton, Ohio and earned a Ph.D. in economics from Ohio State University.