I’m starting to hear rumblings from people worried that we are heading into another housing crisis given the amount of unemployment we are experiencing. Here is a graph that shows that, surprisingly, the unemployment rate and home sales are not very correlated.
The unemployment rate was rising between 1992-1993, yet home sales increased.
The unemployment rate was rising between 2001-2003, and home sales increased.
The unemployment rate was rising between 2007-2010, and home sales significantly decreased.
The unemployment rate was falling continuously between 2015-2019, and home sales remained relatively flat.
Of course, once the economy is back up and running, many of the unemployed will be working again.
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