Housing lull a drag on US economy’s recovery

Sales of new single-family homes tumbled in first six months of the year

TRD New York /
Jul.July 28, 2014 08:00 AM

Despite an increasing number of sales on the top end of the luxury housing spectrum and a rumored $2 billion bid on a real estate website, housing has actually become a major impediment for the ongoing recovery of the U.S. economy.

Sales of new single-family homes tumbled 4.9 percent in the first six months of 2014, the New York Post reports, and the numbers were nearly twice as bad in June, when sales fell off more than 8 percent from the previous month. The lag is the result of Americans — particularly young ones — being scared off by the 2007 housing burst and still steering clear of home ownership, Jeffrey Gundlach of hedge fund Doubleline Capital told the Post.

The plethora of new construction in areas like the so-called “Billionaire’s Row” along 57th Street, home to Extell Development’s One57, has also had an impact on the 99 percent, tamping down demand among the mainstream. In the U.S., the price of a new home is nearly 18 percent higher than it was just a year ago, according to a recent report in the Wall Street Journal.

The full impact of the housing lull will come into clearer focus this week, according to the Post, when an initial spring GDP estimate is released. In the first quarter, the housing slowdown cut into domestic production, which shrank by 2.9 percent. [NYP] Julie Strickland

Related Articles

Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)

For 15 years, David Koch lived at the world’s “richest building”

993 Fifth Avenue and Gilbert Harrison (Credit: Google Maps and GLC)

Retail exec sells Fifth Avenue co-op to Chanel heir for $19M

Clockwise from left: 240 Riverside Boulevar with  Charles Zegar, 111 Murray Street, and 220 Central Park South (Credit: Google Maps, Getty Images, and CityRealty)

Here are some of the Big Apple’s recent luxury resi buys

Lennar reports 13% uptick in Q3 profit amid sluggish housing market

Clockwise from left: 91 Leonard Street, 141 West 11th Street, 520 Park Avenue and 115 Central Park West (Credit: StreetEasy, Google Maps)

These are the latest, greatest residential sales in NYC

565 Broome Street (Credit: iStock and 565 Broome Street)

Only in Manhattan? Luxury condo owner files “class action” because unit doesn’t have a wine cooler

Miami will see a big dip in home prices during the next recession, according to reports (Credit: iStock)

Miami among most at-risk cities for falling home prices during next recession: report

From left: 220 Park Avenue South, 15 Central Park West, 520 Park Avenue, 35 Hudson Yards, Sting, Juan Beckmann Vidal, Daniel Och, Bob Diamond, and Stephen Ross (Credit: Getty Images, Wikipedia, StreeEasy, and Google Maps)

Serial buyers trade “old” condos for new on Billionaires’ Row