Skip to main content

What impact will lower oil prices have on the housing market?

Low oil prices will act as a headwind to the housing markets of oil producing states and dent the demand for high-end homes from foreign buyers. But set against that, the money households save on gas and other energy costs will allow them to spend more on housing. That provides support for our view that housing market activity and prices will rise steadily over the next couple of years.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.