In this report, Danielle Marceau, Prevedere Senior Economist, details thVe U.S. housing market’s unique dynamics during the COVID-19 recession.

New COVID cases continue to add significant headwinds heading into 2021. Business closures remain high, consumers are uncertain about the future, and overall economic growth is slowing and vastly uneven by industry. Mobility has stalled out, and there is starting to be a pullback in some areas of consumer spending. However, the U.S. housing market is on fire.

It’s one of the times when there is a considerable divergence in different sectors, in different parts of the economy, and how they perform during this particular business cycle. There is no doubt that the housing market is doing very well. But in the following chart, there were many tailwinds heading into 2020 within the housing market.