The Spectre of a US House Price Correction

The price of houses is the most important price in the US economy. Houses are the premier
asset that most households own, comprising about a third of household wealth in 2021,
and 45 per cent for the median household (Sullivan et al., 2023). Households’ real estate
holdings are equivalent to almost double the rate of personal income. Households’ owner’s
equity (that is, net of debt held against housing), exceeds GDP.