The American Society of Civil Engineers is warning that the nation’s housing market may be in for a major shock.
The agency, which advises the government on housing policy, has revised its outlook for the housing market in the next year to negative, saying the nation is in a “very precarious situation” with rising housing costs and the national debt increasing faster than the economy.
“The national debt, the unemployment rate, the home price appreciation, the housing affordability crisis, and all the other factors are all increasing very rapidly,” said A. Scott Kline, the organization’s chief economist.
“This is a time for the government to take a long hard look at how we are going to address the housing problem.”
The U.S. government is in the midst of a major overhaul of its housing policy.
The changes are expected to cost more than $1 trillion and have the potential to slow the pace of homebuilding and housing construction.
But Kline said the outlook for federal and state housing policy should be viewed with caution, because many of the changes are aimed at addressing issues like affordability and the quality of homes.
“There is a big difference between saying that you’re going to create 10,000 jobs and say, ‘We’re going go out and build these houses, and it’s going to be a very good thing for the economy,'” Kline told ESPNCricinfo.
“What you’re saying is, ‘Let’s do this, let’s make sure we have the best quality of houses that we can build.'”
The A.S., along with several other organizations, released a report on Wednesday that warns the housing bubble is about to burst.
The report said the average price of a home has jumped nearly 70 percent since the Great Recession began.
The new forecast calls for a “double-digit price jump” in the coming years, with home prices expected to average more than 10 times the national median income by 2021.
The report also warned that the country’s debt will hit $19.8 trillion by the year 2020, and that interest rates will skyrocket, making it harder for households to make mortgage payments.
“If the debt doesn’t rise by that much in 2020, it’s hard to see how we’re going, I think, to be able to make mortgages,” Kline predicted.
“We’ve been on this trajectory for five or six years.
And the next five years will be a lot more challenging than the last five years.”
In addition to the rising housing cost, Kline also noted the nation will be facing a national economic slowdown.
He predicted that the U.K. could experience a “significant decline in GDP growth rate,” while the U and China could see growth rates rise, with the latter having the biggest “doom factor” on the planet.
Kline said that the “real estate market is still not as hot as it should be,” with home values rising only a small percentage of the time.
“So, you’re not going to see a huge boom in prices anytime soon,” he said.
The ASCE predicts that the housing sector will continue to be vulnerable to the next economic downturn.
Klin said the economy is “very resilient,” and that the government has the ability to help stabilize the market by creating tax breaks to encourage builders to make more homes.
But he said that building new homes in the U, and investing in infrastructure like bridges and roads, will be very difficult if the economy doesn’t take off as quickly as it has.
“I don’t think there’s a lot of room for that, and if the country isn’t prepared, you could have a real housing shortage,” Klin said.
“It’s going the wrong direction.
There’s a very big chance that it could be very dangerous for the country.”