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The 3 Pillars of the US Housing Recovery 

Housing Recovery 



For years an albatross around the neck of the US economy, America’s housing market is finally taking flight.
America's housing recovery was a recurring touch-point at the Allianz Global Investors semi-annual Investment Forum in Frankfurt in January. Several of our experts reported that a favorable outlook for real estate was supportive of overall economic growth in the US. Indeed, a 17% surge in residential investment during the final quarter of 2012 partially offset deep cuts in government spending, leaving overall Gross Domestic Product (GDP) in positive territory. We believe the housing recovery is real, is gathering momentum and will continue to buoy growth in the near to medium term.

The tide has turned. After years of crushing weakness, housing is again at the forefront of the US economy. Compared to December 2007 – the month America entered the Great Recession – existing home sales have increased 12%. That outpaces concurrent upturns in consumer spending, manufacturing, inflation, nonfarm payrolls and overall GDP. And, unlike prior "homebuyer tax credit" flameouts, we think the current recovery is sustainable. This view is built on three supporting pillars:

The 3 Pillars of the US Housing Recovery

3 Pillars:
Favorable Fundamentals
A Lack of Inventory
Monetary Support
What the Recovery Means
Past performance is no guarantee of future results. This is not an offer or solicitation for the purchase or sale of any financial instrument. It is presented only to provide information on investment strategies and opportunities. The material contains the current opinions of the author, which are subject to change without notice. Statements concerning financial market trends are based on current market conditions, which will fluctuate. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

Allianz Global Investors Distributors LLC, 1633 Broadway, New York NY, 10019-7585,, 1-800-926-4456.


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